Tuesday, 7 January 2014

b.Strategy - Business Methods

The last part is here:   Strategy - The Demise of Brands

In business methods, there are many things that needed to be understood. A few examples to open your minds:
  • Transportation - This is really a very important item. Almost all businesses require bulk transportation. Instead of booking regular freight forwarding. Do talk to the earthworms and try to get transportation through empty cargo freight. Truck companies usually have regular customers who are normally one-sided in shipments, i.e., they usually ship from point A to point B but not the other way round, meaning one half of the trip is empty trucking. In order to conduct transport business, the truck company will do the math and then charge the shipment in full. So seek out these shippers and try to sneak in your shipments in these empty trucks. These rates are way-way very nice. But, to get that you must not deal with the shipping company. You need to deal direct with the trucker himself. It is not unusually that each of these truckers are independent contractors. They are already paid in full, any extra off-load shipment can be taken as icing on the cake.
  • Supplies - Again this is another very critical requirement. It is not unusually to purchase supplies from regular sources. But, they are fucking expensive. They charge you their father, mother, auntie, uncle, son, daughter and cousin costs. Aim for the over-runs, there are too many over-run sources. You just have to find them. Examples, if you are buying fruits from the large suppliers in the wholesale market, although the prices are good but they can be better. Many fruit sellers have timings to their products to be delivered to the supermarkets. Once they passed that timing, they have no choice but to throw them away. So you swoon in to get these fruits at the right time. They are more than 50% down. For sure, some cannot be used, but many can be used with great effects. Some fruit plantations have fruits that cannot be sold and left on the trees to rot. Buy them just before they are dead gone. You can get them at 25% of the market value. So there are indeed many sneaky methods in getting your supplies. So why pay full price. When you finally grow too big, your economy-of-scale will allow you to get full supplies with still the low price. Construction materials can also be gotten in similar ways. You just need to look hard enough.
  • Properties and Lands - Don't buy from regular big agents, try to seek out very local deals from very tiny agents or connections. You should be able to buy great bungalows with huge land in very good locations for tiny sums that are too embarrassing to place here. They are never even more than 4 to 5-figures per pop. The rental returns allow you to buy in less than 3 years. This is how good the deals are if you are willing to seek.
  • Contractor Services - Contracting regular services is damn expensive. Your fucking plumber will not move unless you pay him like hell per hour and for a minimum of a few fucking hours. Fuck them and fuck them all. Feel insulted? Well, that's not my problem. If you are currently a plumber, that's not my problem. You have outlived your value. Employ instead unskilled worker and direct them to your needs. You only need to pay them minimum wages and yet they are so grateful to you as you employ these unskilled yellowskins for a good day's work. At the same time, since they are unskilled, they don't mind learning a new skill like plumbing your gassed hot-water tanks or sewer pipes. They would be eternally grateful. Fuck the regulations. The regulations can be gotten as a book. Just read them and learn just half a step ahead of your unskilled workers. No countries in the world disallow building improvements made by the owners. Only very tall buildings require a building code.  
Enough examples. More examples only inflate the repeats.

These business methods allow you to survive for a long, long time till you get strong in the process in terms of time on market and some business building.

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