Smart thinking in a nego bags multi million deal

Nation building via learning and being the best in business

This post was inspired by a post regarding a multi millionaire who saw an old building but did not focus on the property deal but what he can do with this.    There was this $50 million property and he had no $ to buy this on usual deal of making a down payment, going to bank and borrowing the balance.    He made a $200,000 option up front which would be  a rental, if after 3 months he does not have a deal.   So he sold the idea of a membership to prestigious club with the house a palatial one for $6,000 each to only 1,000 members.  That is $50M for the deal, and $10M for him to pocket 

So we got two deals both worth 9 numbers controlling the property, with but P400,000.   We yet to make the whole works work   But its the same.  The team should work hard and organize to generate the 9 numbers become a reality.   We got P400,000 forfeiture if things dont work out 

Why are so many flocking to retail business despite high closure rate in US, and very thin margins

Nation building via learning and being the best in business

This post is wondering why in the Phl so many entrants are in the retail business despite record closures in the US.  Even Walmart the largest, Costco are experiencing decline (mainly in California due to very high inventory shrinkage due to the change in the treatment of the law of shoplifting

We see many entrants, Save, Dali, Family Mart, and so many more in the provinces. 

We have seen this as our retail firm closed due to the same reasons.  Thin margins shoplifting electricity cost, and high rental

We understand that one of the late entrants funded by ADB is in the red by billions.    Dali loses P3.26 billion in the last 3 years

It is not rational, it does not jibe with the math?

The successful businesses are those that are engaged in getting recurring business

Nation building via learning and being the best in business

Recurring revenue model

We are engaged in real estate development.  To stay in business you have to continue buying raw land (engage in land banking) and develop.  After you run out of inventory you repeat the process and it cant happen forever  because land is finite and their costs get higher.  Sometimes your revenue cant keep up with increases in prices of raw land and sometimes raw land supply dwindle or become zero.

Selling residential lots, appliances, gadgets are one shot deal.  After the sales, no furhter revenues are expected.   But maintenance agreements, insurances,  apps, program updates are those that enhance the Monthly Recurring Revenues

But the real profitable businesses are those that have recurring income:

1.  Express ways where vehicles pay toll fees;

2.   Health care;

3.  Medicines

4.  Food

5   Rentals

6. TV rentals

We see that MVP is engaged in massive recurring income:    expressway, telephone load, water supply

Thus if you are selling real estate what could be the source of recurring income"

    1  Water supply 

    2.  Home maintenance

    3.   Commercial propery rental

A real estate company makes recurring income from:

     1   Water supply

     2  Parking lots

     3.  Commercial leases

Real estate companies, like us, get lost when there are no more available raw lands for sale  No more inventories to sell

We see that Apple try to get recurring income from music, movies etc.

What could be recurring income in your business?

Challenges in the economy of the premier state in USA - pestered by PESTS

Nation building via learning and being the best in business



As we teach entrepreneurship and strategy we say PESTEL P for political and L for legal and businesses in the said state are facing tough PESTEL challenges.  Capital residents are fleeing the state:

1.  Rising fuel prices.  - due to closure of gasoline stations and two big refineries.  Gas stations could not upgrade to double walled tanks (to prevent fuels spills in case of catastrophe,) because they  could not afford to comply in 2026.  They would be fined  $5,000 a day for non compliance.  Some simply quit and closed their stations  Furthermore, the closure of the two refineries cut the supply of fuel in the state substantially with repercussions going as far as Arizona

The shortfall is filled by imports from Asia thus negating the goal of zero emission because the tanker transporting the  gasoline from Asia use dirty bunker fuel oil

2.  Airlines avoiding California now for high fuel costs.  The military fuel supply is now in danger

Thus threatening tourism, logistics and security in the state.

3.  Apple expanded their campus elsewhere with a budget of $6b because of changes in taxing capital capital expenditures.

4  The state is imposing taxes on the rich the millionaires of 2% of NW.

Investors and businesses are migrating where PESTEL are friendlier.  Not pests.

The golden state is no more golden and killing the goose that lays the golden eggs.   

Xiaomi Ultra 15 - No more deadspot in deserts, oceans - Sat communication = or better than Elons sat phones.

Nation building via learning and being the best in business

Say good bye to 0 signal and no no towers in your location.  Communicate directly via the satellite in the sky.    Is  China keeping up with West sat com communications?

India made huge fines vs Samsung

Nation building via learning and being the best in business

Did Samsung make the right decision to invest in India?   Is India treating its investor, bringing in capital to create jobs to Samsung.?     Nations usually lure big companies to invest and then treat them badly later on making changes in their initial offers.   

Samsung returning to China?  Its making $7Billion investment in CTIP in the Philippines.   PHL is benefitting from bad decision in India...?

What does this mean to the PHL economy   ?   We have a project that is about 3 km from the proposed new site of Samsung expansion.  That is  P420 billion worth of infusion to the PHL economy.  Huge trickle down despite Cantillon principle