Price increase should be accompanied by increase of benefits and features

Nation building via learning and being the best in business

We are finally increasing our price by true mark up formula by end of the month.  We thought that its not just going to be increase in features and benefits to the customers that should include

       1.  Set up

       2.   Features;

              Flowers

              Soc Media posting

               Ceremonies

               Music 

               Food

 

        3.  Operations

             Mechanizing;  obtaining an excavator and dump truck

        TO MAKE OUR SERVICE DELIVERY UNIQUE AND EXCEPTIONAL

             

        3.  Catalysts

             Incentives for our staff to do job well and deliver the features

Our goals are:

       1.  Increase customer satisfaction

       2   Improve margins and profit

       3.  Motivate our staff

Leadership power and strategies for the same; why we cant be equal for all

Nation building via learning and being the best in business

Why we cant be equal even for philosophies espousing egalitarianism

There was a story about  a fox who wanted to be a leader.  After a  hunt, he aspires to divide the spoils equally for every one in the team.  But at the end of the day, the leader was ousted by the members who ganged upon him   And tearfully the fox left the team.

Then it was chance of the lion.   The lion say allotted 30% of the catch to him and let the others fight over the 70%.   So the followers, the rest of the team spent time and energy fighting each other

Fot the next hunt, the lion alloted himself 50% of the hunt and left 50% for the rest.  The team fought each other savagely until one was left to deal with him, which was easier rather than fighting all of the cohort.

Lesson learned:

1.  Divide and rule

2.  The term of management for this are:

      1.  Organization chart

      2.  Division of labor

      3.  Compartmentalized communication

      4.  Need to know basis

      5.  Salary scale

       6.  Power and authority structure.

3.  You cant be naive with power and leadership

4.  Read Machiavelli the Prince

5.  Leadership power means you have to keep them oppressed or illiterate

About selling eggs; and strategies for selling

Nation building via learning and being the best in business

There was a FB post on mashabooks about a man selling eggs.  A passer by a girl,  inquired as to how many dozens of eggs he has sold.  He said only one and two hours had passed.   How much is selling price:   $3/dozen.  How much are others selling?   Also the same.

The girl made the following suggestion:

1.  Have two piles of eggs.   One is to be sold at $5/dozen and the other is the regular $3/dozen.    But why increase the price if the $3/dozen cant sell.

2.  The first inquiry came from two pregnant ladies and asked why sell $5 expensive pile.  He said it is organic and the chickens are fed organic feeds no artificial feeds, antibiotics and hormones and good for the babies.     So the ladies bought two dozens each.  And another and another using the same organic good for the body/health talk.  Very soon  the organic eggs were sold out.

3.  For the second pile, the eggs were segregated between  a $3 pile and $2 pile:    the one pile is regular egg, the second pile is the seconds/small size.    Of course the cheaper one sold out and then the regular.

LESSONS LEARNED:

1.  It the system that sells not the price Its the system of:

      1.  Segmenting the market;  divide and rjule

      2.  Giving a customers a choice

      3.   Benefits first before price

2.  People value health not the savings or being cheap.    People will pay premium for their health and longevity

3.  Its not so hard to sell or make money.   Closed mind makes it difficult

4.  You cant enter the market if you are the same as others.  You have to be different and unique

Segmentation makes the segment unique:   features and sales talk.  Talk about the Purple Cow

David Malpass fmr head of WB predicts progress for the Philippines

Nation building via learning and being the best in business

Reviewing previous posts gives me happiness and elation

Nation building via learning and being the best in business

This post reviewed the posts that have been made over the years.   And it makes me feel so good and proud of what I have accomplished.  These were nice posts:   full of knowledge and critical thinking.  They were aligned with my purpose of finding my gifts and sharing this with others.    Many of the posts are valuable business insight and could have guided others on their path towards business success and start up journey.    No desire for php income.  Others post to get fees for seminars and mentoring.   Others make money on their posts.  

Maybe I am rewarded by business insights on opportunities which come aplenty.  

Or had some followers and viewers from amongst former GSB students.

How much contribution the posts have made to fellow Filipinos (and the rest of the world) I can never measure and tell.  Perhaps its none, or perhaps some.   Or plenty.   

Reviving lending business and making funds earn more -INSTA CASH

Nation building via learning and being the best in business

We had lending business before but for one reason or another the chosen successor neglected this   Then there will be sales where 50% are funds for maintenance.  At the same time we have thousands of customer who can be ripe customers for lending

Hence the insta cash business.  (INSTA CREDIT INSTA UTANG -  Meron na pala East West na trade name)    For most of our buyers nationwide.   Steps:

Launch

1.  We mine our customers data base  say 100 prospects for leads/prospects

2.  Then we approve a credit line for each one depending on the amount of product bought

3.   Amount:   20,000 to P500,000.  Pre approved or approval upon application (in 48 hours after application

 4.  Interest   0.9% up to 1.5% per month  (for relatives and of the principal)

 5.  Product:   Insta Cash

 6.  Channel/platform:    via website or apps, documentation via apps, release via G Cash or Pay Maya

      or FT

 7.  Whats unique:    insta loan, 48 hours time line, available to house relatives;    pre approved for 

       big buyers.  

We would also use this for intra company sbu lending for development, discounting of receivables; and trading of plots where we could earn up to 30-40%.  The  level of assets could be 1.4B in 1 year and our margins could be 12% weighted.    And thats a lot.    No need for additional assets.   All we need is  platform and website and 5 employees

We can earn 9 numbers without resorting to a govt contracting

Financing business is still one of the best way to get wealthy.  No losses in processing or manufacturing or distribution.  All you have to be wary about is collection % and fraud detection among your people

Simply compounding the same amount of asset will triple your business by 300% in 10 years

This post had the following all ready prepared:    Business Model, Business Plan,  Marketing Plan (the job descriptions are all ready enumerated in the marketing plan under people and processes enumerated)

Demotivators, disincentives for the flood control corruption

Nation building via learning and being the best in business

Other nations:    Bangladesh, Nepal and Indonesia rampaged and rioted vs the corruption of their own respective govt.    In Indonesia, citizens protested vs the  $3,000 plus housing allowances of ministers (the equivalent of congressmen here)

Here in the Philippines what used to be pork barrel funds, the PDAF became later the flood control funds amounting to billions not merely millions.  Couple that with scandals showing: 

      1. Nepos splurging more than P700,000 in meals in USA and saying that it is Dads money not that

          of govt

      2.  Bell Helicopters and Gulfstream jets by the Speaker and their cohorts

      3.  Budget insertions

      4.  Ransacking the treasury  for their excess funds to finance the insertions

      5.  Blatant presence of:   congressmen and senators link with contractors, contractors contributing

            campaign funds to Senators

        and blatant lying connected with the above

are clearly demotivators for the citizens and taxpayers, contributing to the lard that the thieves are partaking of.   We work so hard to finance the waste and profligacy of the children of the tibs, and their luxury homes, cars and what have you.   And you question why you pay taxes.   

Will you work still hard to contribute to the largesse that these people are plundering?

Finding opportunities in existing businesses

Nation building via learning and being the best in business

There are many things that one can discover while looking at existing business and one need not look further:

     1.   Relaunch of other m....ial business that current employees have not looked into

            Establishing a separate entity

      2.  Lending operations for existing customers online.   Also as investment, deposit

       3.  Fund transfer business

       4.  Recurring business for maintenance and remembrance

You cant find opportunities in existing business much less pick up on the road the profits that can be had.

Lame alibis and excuses by many subordinates is not conducive to growth and professionalism

Nation building via learning and being the best in business

This post has encountered a lot of management material professionals and even rank and file who have not overcome the habit of bringing in trucks of alibis and lame excuses.  Not accepting responsibilities and worse of all throwing back the responsibility on the approving parties.

    1.  The design was approved by the boss:    but did the employee inspect the quality of the outcome

          or was present in the implementation.   And oftentimes, they did not

    2.  We cant do this because....

     3.  Some do not understand PERT cpm and think linearly.  One gets ahead of others.  Not system

          or simultaneous tasks.   So they will not touch permits unless this task is complete

Excuses will not make you grow and do not expect promotion with this type of behavior and mindset. 

Focusing on the now - why its not healthy for the business

Nation building via learning and being the best in business

For personal growth and mental health, thats the advice to focus on the now because the past and future burdens your psyche with so much mental baggage.

However for business, if you focus on the now:

     1.  Now becomes the past, the future becomes the present;   thus focusing on the present

           makes your business a past tense.

     2.  Now means therefore:   old business model, key process and manpower and may be uncompetitive

     3.  If you are real estate company that means soon you willl be out of inventories, and pretty soon

            you have nothing to sell.  If you do not produce new inventories, you will soon be out of business

If you do not innovate, you will stagnate, and others who overtook you will not only make you eat the dust but will bury you 6 ft underground

This happened to company this post used to lead.  The children took over and they stagnated.  We were the prime movers and leaders in the industry.  Now we are the laggards.  How said

Whats the most important subject did you learn from your MBA studies?

Nation building via learning and being the best in business

Is it strategy, financial management, marketing?

Early on in my career as a businessman, right after MBA, and fresh from stint as a marketing guy in a Filipino pharma multinational, we decided to put up a business.   And this post was frantic on what essential skills and knowledge must I be prepared with to handle the unknown task ahead.  Was it strategy, HR, marketing, finance or operations?    No.

I weighed things  and said it was Entrepreneurship.   I had only one book on the subject and it was even based in USA and not with practical PHL examples.  Thats all I had.

And there was this Regional Head of a computer company  who decided she will marry and reside in USA.  She will put up a business.  What skills will she need?    Entrepreneruship.  And thats what I taught at GSB.

Thats what you need as a start up -  knowledge of ENTREPREURSHIP

Leadership power: how to stay on top leading the team: people above you, beside you and below you

Nation building via learning and being the best in business

There is a book being peddled at the social media that promises to solve difficulties in leading people  Some mentions:

     1.  Being strict rather than being lax in the beginning;

     2.   Do not concentrate power and authority in few hands;

     3.   Job rotation

     4.  Establish competition:

              1.  Keep on hiring

              2. Challenge the team members to be competitive with other team members or other departments

              3.  Practice career paths while you maintain your won

      5.  Setting examples:  both negative and positive rewards. 

There is a book from Matsushita that says:    Iron hand, velvet gloves.  Be affable in dealing with people bet be strict in enforcing processes and policies

There is such a thing as management prerogative:

1.  The management and the leader has the moral authority to lead;   They are the ones who holds the authority over jobs, pay and promotion.   So it cant be shy or timid in imposing disciplien

2.  I encountered this when we were dealing with KMU union that struck our company.   I became tentative in handling discipline and my boss an MIT grad, said No  It is business as usual, even with  a CBA the staff are mandated to respect the labor laws.   We have our lawyers.  Even if they have NPA -  armed vanguards.    We still provide the jobs and we deserve equal protection the law

3.  Sampolan.  Latayan ang kabayo para madala kalabaw.  A harsh rules execution done in public for all to know will discourage future trouble makers.  As the Romans did with public crucifixion, or the Germans firing squad for the Jews

Protecting business and business deals - why security NDA Non compete clauses are important

Nation building via learning and being the best in business

We have stories about companies getting under or being slowed down by competitors getting in their board.  Like Samsung a primary supplier for Apple, who learned their secret and made their Samsung phone faster and better than Apple or Google executive sitting on board of an Adroid company and later on applying the technology to their Google product.

Stories are replete of these events and I see for myself events or stories that surround our business deal

For example in contracts making and drafts, the other parties try to obtain hard copies of the agreements and very clearly they do not understand the deal.  Why.? Such contracts are expensive to order from a law firm and eventually they will learn to use this to expand their business, and or get a better deal from future partners.   

Or that conflict can arise because some other parties got wind of the deal.  And they can oppose the deal in offices of the regulatory bodies

So better include:

NDA  -  "This transaction is private and confidential, and contents of this document and negotiations being conducted shall not be revealed to the public and/or 3rd parties without consent of the future contracting parties"

IPR  "  This document and the contents herein are the intellectual property of the owner and shall not be used without the author's /owner's written consent.  

Fair enough protection.

A competitor was planning to sell his adjoining property to us and wants to get hold of our financials and process.  Should we give.   I said no.   What would you do?

Would a non compete clause be enough?

For emplyees, the three clauses they say cant keep the employees from squealing on you.  Others prescribe keep on improving, Keep on innovating.  

Those closest to you can destroy you; the only thing that destroys steel is rust

Nation building via learning and being the best in business

This post this morning was mad and was complaining about a relative whom she hired take care of her hobby, business.  Her costs on an input doubled, one of her pets died due to negligence.   And the daughter was having difficulties also because of the increasing feed costs could not pay her salary.

This was in addition to the niece hired by wifey who could not give me the link to the work assigned for almost half a year.  Was clearly not accountable and irresponsible.  

Coupe this with my experience that my brothers and sisters removed from the board of the company used to head and which I organized.

We have an sil being a project officer.  I am beginning to believe that:

      1.  He does not know his job, the outcome of contracts being substandard

      2.  He is ill trained to be  project officer because even contract administration lacks the 

            necessary pre qualification and specification documentation, and even inspection

      3.   He cant comply with the following:   attendance requirement, minutes submission and

            observance of timelines/deadlines.

So be careful of relatives.   In my case, they destroyed me, and my daughter.   Of course you have to hire those who can defend take care of business.   And the theory is that relatives will care for you.   But most of the time they are the ones who are jealous and the truth about Cain and Abel persists up to now.  

If you have one existing;

     1.  Clarify rights:  ownership, voting rights

     2.  There must be strong leader to weaken those who have loud voices

     3.   Familial relationship and business relationship must be made distinct and  seprate

Keeping your eyes on the ball; staying focused and determined

Nation building via learning and being the best in business

We were in a business negotiation for a project.  And the major initiator or the project who invited us to support her:   as adviser, as engineers marketing and management lost focus as to what she would be;   a project owner or a broker.  In the deal she was brokering.  Despite agreeing on a partnership with the owner., since we arrived at her place/that of owner:

    1. She had the document initially drafted as partnership changed to a Contract to Sell.  And then

         said she was in COI since she would receive commissions

    2.  In front of the principal, the document which was reviewed prior by her was shot down and criticized

The project/deal is on the verge of being lost, because of the shift in focus.   If she wanted the deal to be that she would be an owner

A reminder of the original thrust/goal must be reviewed and this party must keep eyes on the ball if we are to succeed.   We do not collapse under the adversary pressure.  We must be strong by sticking to the original objective/goal

Crafting a vision or a system for amassing wealth. (not academic work or paper work)

Nation building via learning and being the best in business

Is it the vision that really matters in creating a business that will succeed.  Most strategies mention VMOKRAPI.   V is for vision.   This was mentioned by  Gino Wickman    in the Book "Traction "

But street smart guys would laugh off that paradigm and insist on having a system for making money.  Vision is only for bookish, academician who receive salaries but do not know how to make money on the street.  

And that means having a sharp eye on what sells, and what customers really want and being smart enough what makes money for the firm.  Sometimes it is the ancilliary things that are not noticed that makes the most money   For instance, we were struggling on how to make an operation make money:  there were a lot of equipment, personnel and complex process needed.  But people who were doing maintenance work were said to be raking in as much as  P300,000  per month doing simple maintenance work for our customers.    We make only 1/3 as much  So we plan to integrate that service with us.  Why let outsider makes more money than us in our own territory.  

So what could be the PHP money making schemes (strategies) or systems

1. First find out what the majority of the Class DE and market  want or need if you are going for volume or   what premium services the  top tier client want (where price does not matter)   We know of a business here in Laguna making tons of money by rebuilding cps in US under insurance of $100.00 a year.     So maybe a phone is insured for 5 years yielding  $500.00 for the insurer.   The cp conks out and they rebuild for $90.00 and sells the same say for $120.00.  There could be hundreds of thousands CPs being serviced by this firm

     Where is value most created that is not being fulfilled now.  Find recurring needs and wants for 

      existing customers as maintenance agreement for computers, laptop

     

     1.  Say in gasoline stations, the  repairs, routine service such that:  quick cheap oil changes

           firm such as Rapide are sprouting.   Kasi, peripheral business lang for oil companies. Their focus

           is on oil and lubricants

     2.  Still on gasoline stations, they make more money on running the real property as free parking

           lots but as malls:   leasing front stores for groceries and fast food

     3.   Car dealers make more money on repairs and parts such that they are instructed to upsell on

            expensive parts:   ECU fuel injectors to the detriment of pockets of car owners.  Or for 

             once a lifetime battery change for an EV, or the charging stations.  

     4.  For non life insurance, the thickest market with all the floods, is AOG for cars.  (Acts of God)

     5.    The freemium model   as in Google:   free Google mail, maps, drive but make money at You

             Tube lots of it.   So you can sell P1  airline ticket for the 1st 1,000 or up to 5,000 buyers but                     make money on rest of 200,000 or so who will flood your website for such a free ridiculous                     almost free offer

     6.  Membership cards, privilege cards.   Now it is a common knowledge that frequent flyer points                 are  asset of airlines

Exploring financial Ledger demaine (engineering)

Nation building via learning and being the best in business

Seen in book being sold as a guide for money making.

Many times we say its the capital that counts.  Again we say its the head the capito  Cunning, being smart counts.    (Many would say it is scam)   So this post thinks that many businessmen cross the lines of morality. 

Lets say you were lent P1 million to be returned in a short period of time -  one week to to one month.  How would you do it.?  Of course the long term business planning will not work.  It has to be ingenious.

The book says that this could be the way to do this (but this is fraught with risk and loopholes that could cause you to fail:

1.   First, open a CTD with the bank for one million

2.   Then borrow up to 90% of the  CTD -   P900,000.

3.  Use  the  900,000 to purchase Real property.   (Most would require 30% dp and that means you can acquire up to P2,700,000 real property  )

     Buy a property worth P500,000 cash

     Buy a property with P400,000 dp,  P1,200,000 total

4.  That means now that you now have the P1,700,000  +  P1,000,000  = P2,700,000 total assets.   You are now rich

5.  The big problem is now paying back the 1 million .  Thats where it gets  challenging and sticky:

6.  How.

      1.  Flip the house bought for cash at P1,000,000;

     2.  Or say sell for   P900,000,00, borrow against mortgaged property for P100,000 to add  to P900,000 for 1 million total.  Bur we did not include here:   the interest expense on the loans and the P1 interest.  But the scheme can be learned on how to create something from nothing   From zero to one   And yet many of us struggle on 8- 5 jobs