Survival Guide for 2012

Travel: Yacht v Mobile Home

January 20, 2012 | Author: jillb

A good cruising yacht is self righting and is far safer than many other vessels. Top heavy vehicles such as a caravan can be a pending disaster in windy times. Inexperience with both vessels however can be similar to mismanaging a business, or the economy of a country. They can both spell disaster if not properly understood and mistakes are made.

The old saying is that a good sailor is not the one who knows how to get out of trouble, but the one who knows how to avoid the trouble in the first place.

When once cruising around the islands in a yacht I moored in a bay. From there I saw someone skipping on the deck of a much larger yacht than mine and I thought well, how good is that. I know the downside of owning a large yacht and including how much a big yacht costs to maintain.

At the same time a large yacht is a lot less fun to sail than a smaller yacht. Plus a larger yacht needs a crew. This means that a couple who are sailing around as we were, would not have privacy if they needed it with the other people needed on board.

It would also likely to need an engineer on board as the big yachts have electric winches to operate. Sometimes someone can spend a lot of money on a yacht and unknowingly be trapped into becoming an unpaid maintenance man. Also big yachts are like a bus compared to a car when it comes to parking and that can cause problems.

A 30’ yacht has a reasonably low draught keel. (4’). A bigger yachts has 6’ or more, which can mean during a storm they are more likely to strike rocks than is a smaller yacht. Another disadvantage for a big yacht is that they are restricted to where they can travel in terms of smaller bays.

With yachts mooring and anchoring it is largely free, and we could call into a bay like the Bay of Islands and if the fish were biting we had fish for breakfast. If we didn’t like the neighbours, which never happened, we can always up anchor and move on. I recall the happy times of when sailing with the spinnaker and we had Dolphins showing off ( which they do ) around us.

As opposed to mobile homes for travel and staying in caravan parks. This can be a good life if you stop at the better parks and you are able to mix with more settled people. Some can boast about how they bought a property for $100k, and quickly resold it for $1million and this extra cash has allowed them to travel around Australia at their leisure.

On the other hand you can stay in the budget caravan parks where you hope not to strike a yobbo neighbor who will turn his $5k stereo down only once the barbecue with other noisy neighbours has finished.

They eventually run out of beer and continue boasting into the early hours, in real ocker style “Mate last night was orright. The missus was cranky cos she couldn’t sleep when I forgot to turn me stereo off before passing out. She doesn’t like my music. Yer know mate the good old drum music, if ya know what I mean.

What does she expect? She wanted him to park near the showers and the pool, and now she’s complaining about the noise. He does his best to please her, and she’s never happy. She was winging so much night before last that he slept in the 4 wheel drive that they have to tow the caravan.

Having a powerful car comes in handy sometimes but a small car is easier on the pocket by not chewing up so much petrol when travelers are on the road.

So back to the question, when it’s all boiled down what is best – would it be better to travel around Australia by mobile home, to pull a caravan or is it best to be sailing around on a yacht visiting all the islands and ports?

Business Efficiency

January 18, 2012 | Author: jillb

To improve business efficiency Mahob and Mary offered printed, silk screened, promotional T-Shirts at a discounted price to regular customers. People liked the design. It had 2 front pockets with a pen slot, plus a collar.

With a collar they could also be worn in places with a fairly strict dress code. The nearby printer said the shirts were left over from a business that went bankrupt. He negotiated a special price with Mahob which included a discount on his meals. Mahobs condition for the discounted meals was that he avoided coming in during the busy periods.

They often gave pensioners and regulars who wore the T-Shirt something extra with their breakfast when they had food left over. Sometimes to take away as well, in brightly printed promotional bags.

Their customer friendly attitude included offering free filtered ice water on hot summer days to customers and things like allowing them to leave shopping bags for collection later when they have finished their other shopping.

The added business efficiency caused the new business to prosper also due to their reputation for having good coffee and food. The friendly service often included loaning customers several items including trays and other small favors.

During this time Mary and Mahob got married. They had sold Mahob’s small house and rented a nearby 3 bedroom home after Mary fell pregnant. They decided to rent until they could save enough for a deposit to buy the home they wanted.

The business income grew and Mary worked full time with husband Mahob Mushi. They sometimes opened the shop early for shift workers to have breakfast and they prepared lunches for them to take to work. They packed the lunches in the shop’s promotion bags.

They surveyed customers to learn what was preferred before going to the markets. This helped to reduce food wastage. Many shift workers also liked to call in after work so Mahob and Mary extended their closing hours as well. They sometimes catered for an evening get-together or party. They also catered for the occasional wedding reception.

When Mahob and Mary talked with a business associate he suggested they see a Government Small Business Adviser (GSBA). They agreed and contacted the department. They spoke with a young man who had studied accountancy and had a Masters degree in Business Administration. (MBA). He went through their books and showed them how the latest computer bookkeeping system could help them. A suggestion for when they could afford to buy it.

The young man Lu, gave no importance to his lack of hands on experience in managing a business. He said his studies showed that the key to success is in the marketing of a business. Mahob and Mary got to know him over lunch. Lu said because of the high overhead economy in Australia, like America we are heading into a devastating depression. His confidential advice was to buy gold and be ready to leave Australia.

He has bought a small farm in his home country China as he said their economy is more stable than Australia’s economy and that he believes Australia’s economy would collapse completely. That is if Australia cannot repay the debt interest on money borrowed from China.

He said with his small property in China that if things go bad he has his farm food for survival. He can live in reasonable comfort as China’s strict laws and policing will reduce looting and violence when people become desperate.

This will happen when there is a vast division between the have and the have not. The people in poverty will become desperate to find ways to save their family from starvation, from illness and death.

Anyway for the present Mahobs business is thriving and his income increased which meant they could employ 2 people. They can now take a holiday. One afternoon, 2 years after relocating they drove past their original shop premises. They noted that there were an increased number of empty shops in the street. This included their former shop premise.

They also noted that very few people were using the fenced off bicycle lane. The bicycle lane reduced parking and therefore reduced shopping in the original location.

Keeping the Fast Food Business Alive

January 16, 2012 | Author: jillb

In the previous article Mahob was struggling to make loan repayments to keep his fast food business alive. He realized he keep hoping things will improve and he wondered why the Maybe Council charged fees for such things as him putting up signs outside his business.

He also wondered why they would allow competing businesses near each other. That is when the area’s disposable income would mean that most established businesses like his one would eventually close up.

A fact evidenced by the increasing number of empty vicinity strip shops in the area that are closing.

Friends he met through Church on Sunday afternoons when business was quiet and, his retired cousin managed the shop for him, all said we notice that “many factories and a lot of retailers are closing, down everywhere because people have less disposable income.

Mahob and Mary discussed their financial conundrum when revenue declined and at a time when some politician are claiming the economy is good. Some politicians continued to waste money including for call girls and on carbon spewing jet planes for pleasure trips, expensive green energy ideas that weren’t feasible and so on.

Overhead costs to fund the corrupt politicians reckless world travel and dumb projects they didn’t plan for with proper research, let alone a cost benefit analysis meant more tax was demanded, and Mahob’s net profits were diminishing. for often less than low wages, plus the premises rent was raised.

Then yet another fast food shop opened nearby, catering for the ethnic group now dominating the area, to mean even less potential. as Mahob only spoke English. Mary’s unemployed brother Bob offered to mind the business while they searched for a better premises.

They eventually found a small suburban shopping centre with good people traffic numbers, because of the nearby school, and while a big shopping complex was not far away it had tough leases which necessitated tenants to refurbish their premises regularly, plus pay the landlord a profit fee.

Many English speaking Australians still lived in that suburb who preferred the older smaller shopping centre as parking was easier, they had school children and prices were often better, plus there was a small food court with outside tables and chairs so people could enjoy the sun while snacking or drinking coffee when waiting for their children etc. and no similar “fast food” competitor was nearby.

A delicatessen near the large seating area was vacating and it could be converted fairly easily. They first checked the potential and even sat studying the people traffic for hours, to try and ascertain how many could be customers. ..

The original landlord’s Real Estate Agent had found people interested to take over Mahobs premises, who offered Mahob a nominal amount for his shop equipment, which Mahob accepted, as he was broke after paying the $20k., loan, for a new computer, car repairs, plus his increasing overheads with the latest electricity account. That was almost twice the previous year.

Mahob applied for and took out another loan, and set up his premises with near new second hand goods from auctions and bright signage so his new place could have visual impact and appeal. A good customer was an electrician who helped them install equipment for a modest price.

They prepared and printed fliers on their computer which the shopping centre management said they could use to establish. This included under the visors of cars, in the nearby streets, plus some posters at different locations.

They also found a young unemployed man to wear a sandwich board promoting their shop, in return for some free meals who gave people their 10% card. Meaning customers could have 10% off every purchase when they visited after they had bought there 10 times.

A ticket shaped clipper cut-out configuration that was unlikely to be copied confirmed each visit. They kept trailing different promotions because as they learnt advertising is not always an exact science.

If you like this don’t miss the next article in this series. Would you like to comment on Mahob’ business plan?

Surviving in Business

January 15, 2012 | Author: jillb

In the previous article Mahob worked hard for long hours and hoped his business income would improve so he could employ a helper and have some time off with Mary, to then eventually sell his business, and retire.

With a business, like the management of a country the income must exceed all costs and the net profits are the money left from sales made, less all expenses, we might call overheads.

Therefore if the cost to run a business with rent, electricity, telephone, wages etc., is $2000. weekly and the sales of stock is $1800. weekly the business is losing money if dead or redundant stock and other expenses totaling to more than $2000. are included in the calculation.

If the business then borrows $20,000 in the hope that their profits will improve later and the repayment is interest only for 3 years at 20% per annum, which is $77. weekly.

Borrowing meant the business could continue. However the business must put at least $130. aside every week for 156 weeks = years to repay the $20k., after 3 years. with the interest. If the profits do not improve, but they decline, or additional expenses arise as a business must clear $200. weekly, less the interest of $77. meaning $123. at best is left when $128. weekly must be put aside. Meaning it could then repay the $20k., capital borrowed after 3 years.

When the income declined and Mahob had no option but to apply for such a loan. He had kept good records of all transactions. Government sales tax and daily records which often meant working each night.

The lender took a lien (ownership) over goods worth more, at a depreciated value, which normally includes real estate. Increased living costs with carbon tax etc., then a general drop business and real estate values, mean’t the business cannot obtain another loan or they could lose their business and also Mahobi’s house.

Mahob Mushi was ambitious, read all he could and even attended several learning seminars at his own cost, after hours. . He also thought up a few of his own ideas to entice more customers which included better seats and free filtered water in his limited shop space for waiting customers., plus a sandwich board outside to attract passing motorists. The sign took negotiations with the council and payments. ….

The Maybe council said the sandwich board could block the footpath, and might trip, which means insurance, even though Mahob explained hardly anyone walked along there. He also had to approach the council and pay more money for another sign near his window, plus a bicycle path was fenced off on the adjacent roadway which reduced vicinity parking, significantly.

One bigger vacant place in the line of strip shops came empty Mahob thought he could move there and have a big window sign and more tables for customers, until he learnt of the high rent being asked, plus the lease did not include a good renewal option after it’s 5 year term expired.

Then another fast food shop ( a Franchise) took that premises. Even though Mahobs food was better, the bottom line customer numbers and income reduced.

The Franchise all but closed after 2 years. The upset franchise purchaser that had befriended Mahob and said had he done some research he would not have been fooled by the seller, the franchise licensers, the renting real estate and the owner of all the strip shops in the block, as he later realized the numbers he had did not add up.

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Business Solutions and Survival

January 14, 2012 | Author: jillb

Continuing on from the first article, Mahi had studied retailing and liked the way Mahob provided up to date magazines and some of the days papers for customers to read while waiting 10 minutes or so for their take away food.

Mahob thought up this strategy. Mahobs friendship with Mary had led to love. They hoped to buy a big house in a nice suburb one one day with at least three bedrooms and with a reasonable sized yard for the children they would have to play in.

Mahob read the daily newspapers and discussed current events with customers Mary’s friends with clerical jobs in the government who stopped in there regularly. Mahob gathered they had high incomes, but were very vague about the actual work they did. ( or as he eventually realized they “didn’t do”)

At first Mahob was surprised how they could spend working hours at his place talking about hobbies and playing chess plus it seemed an inordinate amount of office gossip and/or politics. Talk about collaborating and buzz words They all drove good cars and said they park for free in their city buildings, start late and go home early to miss the traffic.

He sometimes heard them on their mobiles, saying “tell him I’m seeing a client”. On asking them what sort of clients they see, some were obviously annoyed so he stopped asking. as they were his best customers.

They told him almost everything was free for them as the Government even paid if they attended a seminar that interested them, plus computer internet time, along with many other goods like pens and paper etc.

Explaining how they had to place big orders annually or they could not repeat all the free goods next year. Saying it was like this with other bills and this is why the large government luxurious office buildings leave all the lights and even the air conditioning and/or heating on at night. They just said if we stop the gravy train expenditure too many questions could be asked.

One laughingly said there were public servants once, but now the public are our servants. The Ivory Tower Politicians look after us as we now have the numbers. We’ve learnt how to use words like a politician does, as renaming can assist new schemes we call initiatives and revolutions .

Outsourcing sounds better than sub-contracting. We now outsource everything we can. “Doesn’t that increase the cost of services like electricity and water said Mahob?”. Yes, was the public servants reply, but we still keep our jobs, with less work.

If the Australian public make inquiries or complain we call them racist and whiners. He was also told. We get a bonus for thinking up new government departments and names as we have with the many solar panels and wind-farm departments, even though they are not cost effective. The mining tax isn’t as good as hoped originally. However the legislated carbon tax will fund more schemes.

Mashi thought he’d like to get on the gravy train and their good life with first class air travel when going interstate and overseas for all expenses paid events like the recent Climate Change parties, stay in posh hotels plus a good expense account for local restaurants etc.,

He even learn’t how most politicians have the use of chauffeur driven cars, a service their wives often use to do the family shopping. Also with their other benefits such as the best barristers and lawyers for free, as the government pays, regardless of the reason.

Mahob applied and learnt their employment requirement was usually a University Degree he could not obtain, as despite his intelligence and high marks from school he could not qualify.

Mahob did not have the time or fees to obtain a University Degree as he had to work at least 60 hours a week, for a few years, which meant no spare time. Realizing, sadly, that had he started when young the Government could have employed him while he studied.

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