How to help your business grow in difficult times. Some ideas.

1. YOUR BUSINESS
IS IN TROUBLE
and why government
initiatives still haven’t
saved you …
Daniel Evans
CEO & Economist, Ormita Commerce Network
daniel.evans@ormita.com
www.ormita.com

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

3. BALANCE OF TRADE

4. WHAT DOES “BALANCE OF
TRADE” REALLY MEAN?

5. WHAT DOES “BALANCE OF
TRADE” REALLY MEAN?
don’t take my word for it
let’s ask someone else…

6. my sixth grade teacher

7. TOTAL $ VALUE OF EXPORTS – TOTAL $ VALUE OF IMPORTS
=
BALANCE OF TRADE
the formula

8. I APOLOGISE …
THIS WAS ACTUALLY MY SIXTH
GRADE TEACHER…

9. my sixth grade teacher

10. A POSITIVE BALANCE OF TRADE
Is known as a “trade surplus” (because it consists of
exporting more than is imported).
A NEGATIVE BALANCE OF TRADE
Is known as a “trade deficit” or a trade gap (you are
importing more than you export).

11. A POSITIVE BALANCE OF TRADE
Is known as a “trade surplus” (because it consists of
exporting more than is imported).
A NEGATIVE BALANCE OF TRADE
Is 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…

12. WHICH MEANS …

13. LESS MONEY IN LOCAL
CIRCULATION

14. WHICH RESULTS IN…

15. LESS MONEY FOR LOCAL PEOPLE
TO SPEND
With you

16. WHICH MEANS …

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

18. WHICH LEADS TO …

19. SOME BUSINESSES CUTTING
BACK ON THEIR SPENDING

20. WHICH CAN MEAN …

22. LESS PAID WORKING HOURS

23. LESS PAID WORKING HOURS
VOLUNTARY PAY CUTS

24. LESS PAID WORKING HOURS
VOLUNTARY PAY CUTS
REDUNDANCIES & LAY-OFFS

26. WHAT DOES THIS HAVE TO DO
WITH YOU?

28. I’M GETTING TO IT …

29. WHEN YOU PAY SOMEONE …
WHAT HAPPENS?

30. WHO WILL THEY SPEND THE
MONEY WITH?

31. HOW MUCH OF IT WILL COME
BACK TO YOU?

32. LETS FACE FACTS

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

34. WE CANT FORCE OUR
SUPPLIERS TO BUY
FROM US

35. SO WHAT DO WE DO?

36. WE PUT BANDAIDS
OVER THE CRACKS

37. Discounting

38. Discounting
Special Offers

39. Discounting
Sales
Special Offers

40. BUT THE CRACKS
GET BIGGER

41. LESS MONEY IN THE ECONOMY
ALSO MEANS …

42. MORE SURPLUS CAPACITY!

43. “Every day there is 9.3 trillion
dollars of unsold time, space,
production capacity or products.
This is going to waste.
”

44. “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…

45. EMPTY SEATS
@ ENTERTAINMENT
VENUES

46. EMPTY SEATS
@ CAFES &
RESTUANTS

47. UNSOLD
APPOINTMENT TIME

48. EMPTY ROOMS
@ HOTELS &
RESORTS ETC

49. SURPLUS
RENTAL CAPACITY

50. WASTED
SPACE

51. IDLE
PRODUCTION
CAPACITY

52. DEPRECIATING
INVENTORY

53. A LACK OF MONEY DOES NOT
NECESSARILY MEAN A LACK OF
ASSETS

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

56. Great Idea

57. Great Idea

58. WHAT IF…

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

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

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

63. NO…
WE HAVEN’T
GONE NUTS

64. THE PLAN …

65. Put together a
network of
businesses who
have excess
capacity

66. Media Service Manufac-
Companies Providers turers
Retailers Start-ups Governme
nts

67. LET PEOPLE START SELLING
THEIR UNUSED CAPACITY

68. E F H
D G
A B
C I

69. E F H
D G
A B
C I

70. E F H
D G
A B
C I

71. E F H
D G
A B
C I

72. E F H
D G
A B
C I

73. E F H
D G
A B
C I

74. E F H
D G
A B
C I

75. E F H
D G
A B
C I

76. E F H
D G
A B
C I

77. E F H
D G
A B
C I

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

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

81. Line starts here.

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

83. SO LET’S DO SOMETHING FOR
OURSELVES
Pay for what we
have with what
we need

84. Bank the value
of unsold assets
SO LET’S DO SOMETHING FOR
OURSELVES
Pay for what we
have with what
we need

85. Bank the value
of unsold assets
Buy from those
who buy from us
SO LET’S DO SOMETHING FOR
OURSELVES
Pay for what we
have with what
we need

86. Bank the value
of unsold assets
Buy from those
who buy from us
SO LET’S DO SOMETHING FOR
OURSELVES Invest without
spending extra cash
Pay for what we
have with what
we need

87. Bank the value
of unsold assets
Buy from those
who buy from us
SO LET’S DO SOMETHING FOR
OURSELVES Invest without
spending extra cash
Pay for what we
have with what
Change the way we
we need
think about business

88. WE WOULD HAVE MORE
OF THIS AS WELL …

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