Sunday, June 15, 2008

Go Fishing

What a week due to the fuel price hike. When the new accounting data-entry business started this year, I thought I was very smart when I only initialized clients' balanced sheets. The reason was to start the data-entry only according to what we are paid for. The methodology worked well for at least to identify clients' current financial situations. The fuel price hike however gave a different perspective.

When the fuel price was raised, I was immediately instructed to enter backdated entries without any charge. As the family business connection is the major shareholder of the business, they have all the say.

It was a good move though the business have to bear all the cost of the extra expenses.

Something is confirmed significantly. Though the price hike has immediate affect on some business sectors (logistics and transportation, wholesaling and retailing), other sectors are not affected and in fact they are growing very well:

a) Plantation - Paddy, Coconut, Cocoa, Coffee, Palm and Rubber
b) Fruits and Vegetables
c) Poultry
d) Agriculture Services
e) Fisheries and Aquaculture
f) Human Capital Development
g) Other Services

Yesterday (Saturday), we had a business meeting where for the first time this year, all family business connections of all sectors participated. With the pro-forma of projected financial statements, we decided to:

a) Stop immediately all planned developments in SMI (Small-Medium Industry).
b) Reduced the targets for wholesaling and retailing.
c) Increase more investments in the better growing sectors.
d) Immediate deployment of human capital.

The fuel price hike is troublesome in most business sectors. It however has direct impact on some sectors to perform better.

The chinese are right. Danger does spell OPPORTUNITY and that's why the word danger is symbolized by the word opportunity. In fact, throughout my business experience, we made HUGE money in crises - The mid-80s Economic Recession, The Asian Financial Crisis, The 1999 Edible Oil Glut, The Gulf Wars and there is without doubt the Food and Fuel Crises spell BIG MONEY!

This is the best time to go fishing in troubled waters. I'm talking about A LOT OF MONEY here.


On YouTube

I have posted another music video (of sort) titled 'Ajami'.

The Elitism Series: Phoney Money

Due to lack of time, I have posted another flash illustrations (with text only, without any animation).

Song and Music by Azer Mantessa
Flash by Azer Mantessa