your business is in trouble

Daniel Evans

CEO & Economist, Ormita Commerce Network

daniel.evans@ormita.com

www.ormita.com

YOUR BUSINESS IS IN TROUBLEand why government initiatives still haven’t saved you …

FIRST: LET’S TALK ABOUT A TERM THAT YOU HAVE BEEN HEARING LATELY

BALANCE OF TRADE

WHAT DOES “BALANCE OF TRADE” REALLY MEAN?

WHAT DOES “BALANCE OF TRADE” REALLY MEAN?

don’t take my word for itlet’s ask someone else…

WHAT DOES “BALANCE OF TRADE” REALLY MEAN?

my sixth grade teacher

BALANCE OF TRADE

the formula

TOTAL $ VALUE OF EXPORTS – TOTAL $ VALUE OF IMPORTS =

I APOLOGISE …THIS WAS ACTUALLY MY SIXTH GRADE TEACHER…

my sixth grade teacher

A POSITIVE BALANCE OF TRADEIs known as a “trade surplus” (because it consists of exporting more than is imported).

A NEGATIVE BALANCE OF TRADEIs known as a “trade deficit” or a trade gap (you are importing more than you export).

A POSITIVE BALANCE OF TRADEIs known as a “trade surplus” (because it consists of exporting more than is imported).

A NEGATIVE BALANCE OF TRADEIs known as a “trade deficit” or a trade gap (you are importing more than you export).

Virtually all developed countries have an overall trade deficit…

WHICH MEANS …

LESS MONEY IN LOCAL CIRCULATION

WHICH RESULTS IN…

LESS MONEY FOR LOCAL PEOPLE TO SPEND

With you

WHICH MEANS …

BUSINESSES WHO EARN MOST OF THEIR INCOME LOCALLY MAY START TO EARN LESS

WHICH LEADS TO …

SOME BUSINESSES CUTTING BACK ON THEIR SPENDING

WHICH CAN MEAN …

LESS PAID WORKING HOURS

LESS PAID WORKING HOURSVOLUNTARY PAY CUTS

LESS PAID WORKING HOURSVOLUNTARY PAY CUTSREDUNDANCIES & LAY-OFFS

WHAT DOES THIS HAVE TO DO WITH YOU?

I’M GETTING TO IT …

WHEN YOU PAY SOMEONE …WHAT HAPPENS?

WHO WILL THEY SPEND THE MONEY WITH?

HOW MUCH OF IT WILL COME BACK TO YOU?

LETS FACE FACTS

WHEN YOU BUY FROM SOMEONE THERE IS NO GUARANTEE THAT THEY (or someone they know)WILL BUY FROM YOU IN RETURN!

WE CANT FORCE OUR SUPPLIERS TO BUY FROM US

SO WHAT DO WE DO?

WE PUT BANDAIDSOVER THE CRACKS

Discounting

Special Offers

Discounting

Sales

Discounting

Special Offers

BUT THE CRACKS GET BIGGER

LESS MONEY IN THE ECONOMY ALSO MEANS …

MORE SURPLUS CAPACITY!

Every day there is 9.3 trillion dollars of unsold time, space, production capacity or products.

This is going to waste.

“

”

Every day there is 9.3 trillion dollars of unsold time, space, production capacity or products.

This is going to waste.

“

”Some famous guy said this…

@ ENTERTAINMENTVENUES

EMPTY SEATS

@ CAFES & RESTUANTS

EMPTY SEATS

APPOINTMENT TIME

UNSOLD

@ HOTELS &RESORTS ETC

EMPTY ROOMS

SURPLUS

RENTAL CAPACITY

WASTED

SPACE

IDLE

PRODUCTIONCAPACITY

DEPRECIATING

INVENTORY

A LACK OF MONEY DOES NOTNECESSARILY MEAN A LACK OF ASSETS

ASSETS ARE THE THINGS WE BUY WITH MONEY – THEY ARE NOT MONEY ITSELF

Great IdeaGreat Idea

Great Idea

WHAT IF…

EVERY TIME WE NEEDED TO SPEND MONEY WE WERE GUARANTEED A NEW SALE?

THERE WAS A NETWORK OF BUSINESSES WHO PREFERRED TO TRADE WITH ONE ANOTHER?

WE COULD USE OUR SURPLUS ASSETS TO PAY FOR THINGS WE NEED?

NO…WE HAVEN’T GONE NUTS

THE PLAN …

Put together a network of

businesses who have excess capacity

Media Companies

Service Providers

Manufac-turers

Retailers Start-ups Governments

LET PEOPLE START SELLING THEIR UNUSED CAPACITY

A B

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D

E F

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A B

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A B

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E F

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A B

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E F

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A B

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E F

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A B

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A B

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YOU START TO HARNESS LOST VALUE INSTEAD OF WATCHING IT GO TO WASTE

LET’S FACE FACTS…WE AREN’T ALL WALMART OR APPLE

Line starts here.

NEW CUSTOMERS PROBABLY AREN’T LINING UP AT YOUR DOOR EVERY DAY

SO LET’S DO SOMETHING FOR OURSELVES

Pay for what we have with what

we need

SO LET’S DO SOMETHING FOR OURSELVES

Pay for what we have with what

we need

Bank the value of unsold assets

SO LET’S DO SOMETHING FOR OURSELVES

Pay for what we have with what

we need

Buy from those who buy from us

Bank the value of unsold assets

SO LET’S DO SOMETHING FOR OURSELVES

Pay for what we have with what

we need

Invest without spending extra cash

Buy from those who buy from us

Bank the value of unsold assets

SO LET’S DO SOMETHING FOR OURSELVES

Pay for what we have with what

we need Change the way we Change the way we Change the way we Change the way we think about businessthink about businessthink about businessthink about business

Invest without spending extra cash

Buy from those who buy from us

Bank the value of unsold assets

WE WOULD HAVE MOREOF THIS AS WELL …

If you’re interested … please visit our website at: www.ormita.com

THANK YOU!