Who says that homes for the aged will not prosper in the Philippines?

New ideas create better quality of life and wealth

Rizal Philippines
May 28 2017

Mabuhai Nursing Homes





Anawim caring for the elderly

A lot of Filipinos expats in the US are making good in the "homes" (for the aged) business.   Some doctors I know sold their house and migrated to the US to be in the homes business. A relative of my wife petitioned their MDs and DMD daughters to run their homes in the US (he has at least two).   We only thought that in Japan where there is an aging population is the nearest place where homes would prosper.

Filipinos are supposed to be family parents oriented.  But it looks to be fast disappearing because of Western influence and the busy lifestyle that is fast being the adopted by modern Filipinos

Some friends went to a home for the aged in nearby town to cheer up the residents and donate equipment (a washing machine)    It is privately run and established by a CI who was not able to take care of her parents in their hour of need (where they need care)

It is a business where the residents pay a certain amount but a good number of them, who used to be well off and professionals are not paying and neglected by their families.   (Those who all ready bequeathed their wealth to their children) and/or whose children are abroad, are professionals and who have no time for their parents anymore.

That will be direction of the care of the aged in the Phil. and may be new opportunities for care givers.  NO need to go abroad.  And may be the SSS benefits would be enough for home care.   Home for the aged.  Also the NGO would have to pay attention to this.  I need to put up one for this purpose

Innovative ideas by Pinoy Chefs/entrepreneurs

New ideas create better quality of life and wealth

Rizal Philippines
May 20, 2017

To really produce new products and encourage entrep students practice tinkering and experimenting with new ideas, the easiest route/medium is food.  That is why I had sort of iron chef competition in the class where they have their own menu and make their pitches (they have to do a sales talk to entice buyers/customers)

Food is also the greatest family expenditure consuming more than 50% of the GDP.  This runs into trillion.

It is no wonder that the food industry has its biggest share of winners (and losers.)  Innovation here is short lived, sometimes with the same life span of a vegetable in the refrigerator.  Food taste rapidly and some restaurants, change their menu and format every quarter.  Otherwise, you will not survive.
Customer needs change rapidly

Some notable foodstuff innovation that I saw:

1.   Brewed coffee in a tea bag.  An entrepreneur experienced that brewing coffee takes time .  So why not do it the teabag way.  All you have to do is boil water and put the tea bag in.
Brewed coffee in a tea bag

2.   The boodle fight restaurant in Navotas.   Price ranges from P499 for four and up to P799 for eight people.   There are lot of customers   Pias boodle fight resto in Navotas

New ideas create plenty of wealth - new ideas worth billions discussed/planned in a matter of one afternoon

New ideas create better quality of life and wealth

Rizal Philippines
May 10, 2017

We discussed a number of ideas worth billions ready to implement at once at famous lounge of a bank, dept store conglomerate:

We talked about wealth creation today which is amazing:

Holy Gardens Calamba                        P1, 120,000,000

St John (at 3 hectares) Marbel                    252,000,000

St John  Malasiqui                                       840,000,000

Subdivision                                        

Manresa                                                       736,000,000

              Total                                             2,948,000,000

This is not small time but comprise the total size of assets of company, all discussed in one day.  That is the amount of wealth that we could possibly create with some imagination and hard work.

The interesting idea here is:

1.  The memorial parks can be developed in jv, the development can be in a co developer scheme:    I share with a contractor share of the profit as a developer  

Creative financing schemes for an entrepreneur/businessman, investment ideas

New ideas create better quality of life and wealth

Rizal Philippines
May 6, 2017

An entrepreneur according to Simmons is someone who creates something from practically nothing.  HB defines an entrepreneur who has none or little resources at his/her disposal.

Having that in mind I realize that many of our projects/businesses were precisely that:   katas ng hard work and imagination.    Or bled out of stone.

Financing 

I was discussing with a company president, on a still pro bono basis about how he can finance his project when they are practically broke.   He was glad, the land will be used by them by a wealthy land owner, for practically no cash out.  Now how does he develop the project?

Well, he made kuwento that from his former employer. using their extensive network, they made fire sale in cash or cash within the year, to friends (and even screened who gets the offer ) friends at 50% of the listed price.   Then they sell the said investment to regular buyers  Well I told him he should do that since the banks will not lend to his proposed project.

Then the next phase will be to offer the project, after having brochures and scale models, and having made small developments on the project,  at say 10 to 15 % higher than the initial offering at cash or near cash basis (paid within the year) at launch date

Then the third phase would be to offer the project to the public at zero interest x number of years to pay with generous com to the sellers

Investment

We cant rely on the capital or money market for good returns.  The highest last week was 5.5 bond 7 years by SMIC.  Returns still range from 1/4 of 1% on savings, up to 3% on savings deposit and that is it.

Good investment can be made on your own products (especially if you are in real estate)

1.  Buy back of properties, by having right of first refusal in the contract.  You can buy back at a discount if the buyers/seller is in need of money;  Then resell to third parties at regular or higher price

2. Instant loans for those who need liquidity

3. Buy your own inventory at the fire sale, or encourage subsidiaries to do so.

4.  For the maintenance fund, the simple strategies can work:

     1.  Use the funds to buy out your partner;    make it big so that you can use this as MA later on

     2.  Discount the AR from the customers (offer discounts to customer if they cash out before the end of the term.

    3.  Buy your next investment using installment as buyers buy your product.  That is the only way you can even out your cash flows and come out ahead.

Is it really just location that matters to a real estate project?

New ideas create better quality of life and wealth

Rizal Philippines
May 6, 2017

I was in  business trip with a group, currently engaged in housing development who want to venture into memorialization business. The property which they could develop for nothing is in Calabarzon region.  The external environment:  commerce,the demographics are excellent.  The catchment area is from primary town A with 70t population, with 3 major banks, 3 modern hospitals and 3 memorial parks.  However, the memorial parks and the municipal cemetery are all full.  They are in the poblacion

The proposed project site is some 4.2 km from the poblacion of primary town, and same distance to the secondary town.   And I said this is a long shot, 3rd choice. Can you get another site along the highway.

The President of the company, who used to be a project officer of a company specializing in resorts does not think that with present situation:   no inventories at existing memorial parks, and installation building of structures and programs to mitigate the distance (billboards, shuttle, malanding development) the project will take off.

I said that must be validated from the prospects, from future customer through a market research survey.  How large the sample:   about 1,000 the SWS ideal size, and selected at random:   40 to 50 yo, female

In this case, he says, location  or poor location can be over come.   (As when you build a resort in Busuanga or Coron)

What do you think

Solutions to a deal.

New ideas create better quality of life and wealth

Rizal Philippines
May 6, 2017

I had a meeting yesterday with the Chairman of a leading real estate company and I am helping them buy out our partner, (and us) but we were stalled by the sudden refusal of our partners to deal with the sub altern of the buyers.

Our solutions focussed on the problem at hand.  What is wrong with the offer?  How do we make the other party accept the offer.  Or what to remove from the offer (to keep the other party clueless as to the real purpose of the purchase, and be silent on the inventory)

So I said we could have plan B.  What was that.  We buy out our partners and (they provide us the ammo to buy out our partner

1.   We and the offeror becomes our new partner

or

2.  We sell out 100% to the company courting us

Surprising decline in the enrolment of former leading gsb?

New ideas create better quality of life and wealth

Rizal Philippines
May 6, 2017

I had conversation with a former student, a professor, an MD and now teaching strat to medical students.  And he was saddened by the departure of former very good professor (now working with competitors)  not being at BGC (UP is at BGC) and dive in number of enrollment to only 1/6 of the former average.

What could be the reasons?  Why is it happening to a school that teaches strategy, that teaches turn around to other businesses.?

I do not like to think about that anymore since I no longer teach and my teaching career (I do not want to talk about tenure because not exists for part time lecturer)  But I am sure the managers of the school are accountable and must be able to find out the reason and  advance solutions/action to solve this sad state of the school. It used to be flying high under former managers and lecturers whom I am part of.

I am sure I not just one of lecturers who was eased out, or pissed off with the new leadership of the school., who value academic degrees and youth over experience and wisdom...