A backfilling job could radically alter business trajectory; additional 9 number in the revenue

Nation building via learning and being the best in business

This post thought that a casual conversation with the supplier would only result in so little additional revenues to the company but 8 numbers is substantial and strategic.  It can add  4 -5 years worth of inventory.  And the costs are minimal on the average only P600/unit

-x-x-x-x-x-x-x-x-x-x-

Subject:   ESTIMATED ADDITIONAL BUSINESS FOR 3RD BATCH OF BACKFILLING

Objectives:

        1.  To construct additional inventories for sale

        2.   Add to sales amount and NI

Background

        1.  We ordered 100 tl for a sales campaign to build 1,400, may predev price at may marketing plan

       2.    We ordered two batches of 100 tl each;   the first one  at 4,700, the second one at  4,500

       3.  Yield  analysis

                                                                             Addtl area                           Addtl lots                 Volume /sm /lot  (15,000 cu meters              Cost  450,000/no of plots

                  4,700 x   100 =   470,000                  2,330 sm                                932                               16.00                                                      482.00

                 4,500  x   100=    450,000                  1,627.00                                 651                               23.00                                                        691.00          

                Average cost        920,000                  3,957.00                              1,583                                7.58???                                                   581.00

                ROI     estimated:     

                           Sales/investment                 158,300,000/ 920,000    171 x     1710%

                           Net sales/investment          158 x.  48%/.92  =   75.84/.0.920    824%

                           NI our share                        75.84  x 55%/920=   41.71/.920     453%

      WTDN

        option

      1.  Order another 100 tl   at 4,500    450,000 payable in the next 90 days

      2.  Estimate:

           Yield volume estimate

            Say 1,300 sm/2.5  =  520  ilow na natin 450 plots

     3.   Estimated area yield      1125   estimated plots yield  -  450                      Cost per sm     450,000/1125  = 400    cost/plot      1,000 sm

     4.  Estimate for total

                                                              Lot yield                  Total cost                     Cost per plot

                             First two batch    -    1,583                        920,000                       581.00

                            Next batch                   500                       450,000                      1,000.00

                            Total                          2,082                      1,370,000                      658.00

                            Estimated total sales                                                                   208,200,000     x 200

    5.  Conclusion:

               1.  Order pa tayo 100+   additionl  baka 4,400

               2.  90 days ang payment period

              Pricing:            500   at        100,000                            50,000,000

                        next       500 at          120,000                            60,000,000

                                      500              140,000                            70,000,000

                                     500               160,000                            80,000,000

                                    Estd total revenues                               260,000,000

6.   Rewards 

                                 1%  x 260,000,000      =   2,600,000 to PO                   

Running a business (following blue ocean strategy ERRC)

Nation building via learning and being the best in business

by a Little bit better

The writer seem to be have employed the ERRC matrix which comes from the Blue Ocean Strategy.

The writer,vlogger lists down 9 steps in running a business

1.  Idea ideation is practical.  Can you get somebody pay you for the product in 48 hours.  If not dont go.  Its just like having MVP (minimum viable product)  Dont sweat out the website or the business plan, or the office lay out,  You waste time.  Find out if the idea works, and if even would pay you for he product idea.  No go if it wont take off

2.  Positioning.  Dont just be the ordinary product   Dont go on price war

3.  Premium offer -  exceptional, outstanding, out of this world, that the prospect cant refuse

4.  Marketing -  no one has such a product  because you used ERRC -  you reduced cost under eliminate and reduce and increased value through raise and create

5. Sales -  you fix a problem when you know the pain.  You are like the doctor.   The author said that when she applies, she asks before the interview:   what are the problems of the manager, and how do you fix it.  95% of the time she gets the job

6.  Profit  - take it first, then the tax, expenses, and others 

7.  Buy back your time    Hire first  admin (accounting hr) delivery, marketing and then the core:   your

     main interest and expertise...  say baking or editing.

8.   You are not building a product  Your secret is a system:   Like McDonald.  You have uniformity.  Thre are no experts but plain people  so you build a system so that the process is repeatable

    How:  1. You video

              2.  You document via AI

  

             3.  Have a checklist

              4.  See if it works..

Resurrecting a what could be a dead deal

Nation building via learning and being the best in business

We walked out from a multi million deal, because it had forfeiture provision.   And margin was very thin, because of the amount involved we will get only 25% ROI on total amount invested -  definitely not a way to conduct business.   But lately I thought about this if it by adding income from two other activities, the ROI can be improved, and restructing the deal,  DP, and  JV on the rest for stress and risk free payment terms.

It is a long time.  The assistant assigned did not do anything about the undesireable provision.   And we inquired about revival possibilities .  The land has not be sold due to its vicinity to the  special use.   And the other one they did not like the term,  The other baka walang pera   

We could earn from the deal, about a  9 numbers.    Its just about reframing the deal, and changing the deal structure

The partner in the said island asked for the cash flow But definitely the deal I have in mind makes the project doable and less risky and a chance for the upside

Reviving a dead deal

Adverse and less friendly business environment

Nation building via learning and being the best in business

One of our units in NL   is facing multitude of additiona business expenses:   one a P2M fine with regulators (our fault for failing to attend to this promptly it would have been a tiny penalty)  and one an 11M tax slap on supposed back taxes for failure to reclassify the property.   The dp was ok, and period of repayment was 18 months but later reduced to 12 months and 11 months.   

To top it all the landowner, the jv partner did not have money and was balking on paying and or us getting the payment and paying the interest.

Certainly this is not the type of environment that we need to face... We can have better business elsewhere.  Killing or stepping on goose that pays the taxes?   

That explains why:   lesser FDI, unemployment , under employment is high, and GDP forecast is at 3.9% no longer 5 or 6%.    

We are looking at at least 3 business opportunities with a B potential revenues  in friendlier environmetn with better demographics and location

A cousin sees hope on inherited estate wherein she is all ready disinherited

Nation building via learning and being the best in business

A cousin recently called me about the inheritance the sibling had (and they are 5) and for which she is excluded.   She was quarreling with the rest of family, but I encouraged her to attend events of sis and brod and which she did.

She told me her sis who was almost 40% interest in the property approached her so that the same could be liquidated/sold and PHP divided. 

So I proposed:

    1  To have subidivided plots project

    2  I made three price points:   low mid and high with interest ranging from 6 to 9%

    3  Net proceeds after dev cost com amount to 4M2@ for low,  P5M @ for mid, and P6M for high

    She would earn ORC for marketing the project of up to 5% of gross and up to 3% of net amounting to about P700,000.  Wow.   Maybe counting the eggs early not yet  But we have to make estimate for motivation

From zero to something.    Entrepreneurs really create wealth

Elon Musk is the world's first trillionaire with Space X IPO

Nation building via learning and being the best in business

This was unthinkable a decade ago.   

5 worlds richest men