YOUR

BUSINESS IS
and why government
IN TROUBLE
initiatives still haven’t
saved you …
Daniel Evans
CEO & Economist, Ormita Commerce Network
daniel.evans@ormita.com
www.ormita.com
FIRST:
LET’S TALK ABOUT A TERM
THAT YOU HAVE BEEN
HEARING LATELY
 BALANCE OF
TRADE
WHAT DOES “BALANCE OF
TRADE” REALLY MEAN?
WHAT DOES “BALANCE OF
TRADE” REALLY MEAN?

don’t take my word for

it
let’s ask someone
my sixth grade
TOTAL $ VALUE OF EXPORTS – TOTAL $ VALUE OF
BALANCE OF TRADE
IMPORTS
=

the formula
I APOLOGISE …
THIS WAS ACTUALLY MY
SIXTH GRADE TEACHER…
my sixth grade
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).
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
Virtually all developed
Is known as a “trade deficit” or a trade gap (you are
countries
importing more than youhave an overall
export).
WHICH MEANS …
LESS MONEY IN LOCAL
CIRCULATION
WHICH RESULTS IN…
LESS MONEY FOR LOCAL
PEOPLE TO SPEND

With you
WHICH MEANS …
BUSINESSES WHO EARN
MOST OF THEIR INCOME
LOCALLY MAY START TO
EARN LESS
WHICH LEADS TO …
SOME BUSINESSES CUTTING
BACK ON THEIR SPENDING
WHICH CAN MEAN …
LESS PAID WORKING
HOURS
LESS PAID WORKING
HOURS
VOLUNTARY PAY CUTS
LESS PAID WORKING
HOURS
VOLUNTARY PAY CUTS
REDUNDANCIES & LAY-
OFFS
WHAT DOES THIS HAVE TO
DO WITH YOU?
I’M GETTING TO IT …
WHEN YOU PAY SOMEONE
…
WHAT HAPPENS?
WHO WILL THEY SPEND
THE MONEY WITH?
HOW MUCH OF IT WILL
COME BACK TO YOU?
LETS FACE FACTS
WHEN YOU BUY FROM
SOMEONE THERE IS NO
GUARANTEE THAT THEY (or
someone they know)
WILL BUY FROM YOU IN
RETURN!
 WE CANT FORCE
OUR
SUPPLIERS TO
BUY
FROM US
SO WHAT DO WE DO?
 WE PUT
BANDAIDS
OVER THE
CRACKS
Discounting
Discounting

Special
Offers
Discounting

Sales

Special
Offers
BUT THE CRACKS

GET BIGGER
LESS MONEY IN THE
ECONOMY ALSO MEANS …
MORE SURPLUS CAPACITY!
“ Every day there is 9.3 trillion
dollars of unsold time, space,
production capacity or products.
This is going to waste.

”
“ 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…
 EMPTY SEATS
@
ENTERTAINMENT
VENUES
EMPTY SEATS
@ CAFES &
RESTUANTS
 UNSOLD
APPOINTMENT
TIME
 EMPTY ROOMS
@ HOTELS &
RESORTS
ETC
 SURPLUS
RENTAL
CAPACITY
WASTED
SPACE
IDLE

PRODUCTIO
N
CAPACITY
DEPRECIATING

INVENTORY
A LACK OF MONEY DOES
NOT NECESSARILY MEAN A
LACK OF ASSETS
ASSETS ARE THE THINGS
WE BUY WITH MONEY –
THEY ARE NOT MONEY
ITSELF
Great
Idea
Great
Idea
WHAT IF…
EVERY TIME WE NEEDED
TO SPEND MONEY WE WERE
GUARANTEED A NEW SALE?
THERE WAS A NETWORK OF
BUSINESSES WHO
PREFERRED TO TRADE
WITH ONE ANOTHER?
WE COULD USE OUR
SURPLUS ASSETS TO PAY
FOR THINGS WE NEED?
NO…
WE HAVEN’T
GONE NUTS
THE PLAN …
 Put together a
network of
businesses who
have excess
capacity
 Media Service Manufac-
Compani Providers turers
es

Retailers Start-ups Governm

ents
LET PEOPLE START
SELLING THEIR UNUSED
CAPACITY
 E F H

D G
A B

C I
 E F H

D G
A B

C I
 E F H

D G
A B

C I
 E F H

D G
A B

C I
 E F H

D G
A B

C I
 E F H

D G
A B

C I
 E F H

D G
A B

C I
 E F H

D G
A B

C I
 E F H

D G
A B

C I
 E F H

D G
A B

C I
YOU START TO HARNESS
LOST VALUE INSTEAD OF
WATCHING IT GO TO
WASTE
LET’S FACE FACTS…
WE AREN’T ALL WALMART
OR APPLE
Line starts
here.
NEW CUSTOMERS
PROBABLY AREN’T LINING
UP AT YOUR DOOR EVERY
DAY
SO LET’S DO SOMETHING
FOR OURSELVES
Pay for what
we have with
what we need
 Bank the
value of
unsold assets

SO LET’S DO SOMETHING
FOR OURSELVES
Pay for what
we have with
what we need
 Bank the
value of
Buy from unsold assets
those who buy
from us
SO LET’S DO
SOMETHING
FOR OURSELVES
Pay for what
we have with
what we need
 Bank the
value of
Buy from unsold assets
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
 Bank the
value of
Buy from unsold assets
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 Change the way
we think about
business
 WE WOULD HAVE
MORE
OF THIS AS WELL …
If you’re interested … please
visit our website at:
www.ormita.com

THANK YOU!