Daniel Evans CEO & Economist, Ormita Commerce Networkdaniel.evans@ormita.comwww.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 BANDAIDS OVER 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…

@ ENTERTAINMENT VENUES

EMPTY SEATS

@ CAFES &

RESTUANTS

EMPTY SEATS

APPOINTMENT TIME

UNSOLD

@ HOTELS & RESORTS ETC

EMPTY ROOMS

SURPLUS RENTAL CAPACITY

WASTED SPACE

IDLE PRODUCTION CAPACITY

DEPRECIATING INVENTORY

A LACK OF MONEY DOES NOT NECESSARILY 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 Compa

nies

Service Provide

rs

Manufac-turers

Retailers

Start-ups

Governments

LET PEOPLE START SELLING THEIR UNUSED CAPACITY

A B

C

D

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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E F

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A B

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E F

G

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A B

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D

E F

G

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A B

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E F

G

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A B

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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 think

about business

Invest without spending extra

cash

Buy from those who buy from

us

Bank the value of unsold assets

WE WOULD HAVE MORE OF THIS AS WELL …

If you’re interested … please visit our

website at: www.ormita.com

THANK YOU!