Saturday, 26 March 2011

Business - Is not About the Product


Today, we heard a lot of people saying they want to start a business to become rich. They claim to have a great idea with great product that will definitely make a business to be successful. But after years or 2, they often come back, it just not going to work. Business is just for the rich. Business never be a arena for people to win. It is a game for crock and con-men hang out. You need to be deceptive in order to be success. Therefore, business is for those who are evil.

I tend to agree on there are some negativism in business arena. But, i never agree on business is an arena of full of risks and evil. As in any arena, or life, there are always good and evil elements. So, what is the drawback, what make a business success and what make it fail? The key word is system. For any business, people often hypnotize themselves in finding an ultimate products. Product do place a certain important in business, but it is consider to be the least important among the factors that will affect the outcome of a business. Why? Because, there are thousand if not millions of idea, great products available across the globe. Even, in communities we are living in, we often heard and seen, idea of somebody are being realized by some company, and make of billion of it. Also, we seen good products unable to place any position in market no matter how goods is it. Ask about people who did bought burger from side road burger stand, they will tell you, it taste better than McDonald. But, they never make up to become a business scale like McDonald.

System it the key that make a business to success or otherwise. System that make up of strong mission, team, leadership and management. Those element is not arbitrary regardless from a small burger stand to a MNC. It might sound simple for certain business such as selling screw and nuts on internet, but the system thats is involved is equally complex in order to make it success and profitable. It is complexity on inside with simplicity on the outside that make a business to growth. Build a great system with great team, any kind of business you are in, success it just a matter of time.

Sunday, 13 March 2011

Economic: It is Not About the Growth


Economic was never been a subject of study until 1800s, when Adam Smith introduce the concept of invisible hand (free market) that govern the stability of market. Economic had since become so important, especially in today world, as it is direct matter to the stability of civilization. Stability by means not unlimited growth barrier but balance in term of trade, innovation, consumption and ultimately civilization.

Today, many had caught themselves off guard to the meaning and purpose of economic study. Economist are now obsessed in to find a solution that could bring the economy growth limitlessly. They are against the fundamental principle of the economic study, the nature law of balance. The law of economic are the same as the law of gravity. It act upon regardless people recognize it or otherwise. In the economic study, the rule of thumb is "cycle". Cycle by mean, when there are something is up, something else has to be down. The tree does not grow into the sky. There be a time for it to come back to the ground. In term of so many mainstream economist and policies makers, they advocate of maintaining positive growth, surplus in trade and other economic gains every years, is nothing but a pipe dream. Instead of pursuing growth and surplus, trade balance is what should they pursue. As every surplus in trade, come with a deficit country. A sense of winner is relatively somebody has to be a loser. No one want to be a loser. Therefore, balance trade is the most harmony and jibe with the nature rule of economy. In the end, no one will be happy living alone as the wealthy person, but surrounded with depress and poor neighbor.

Today, many people are afraid of economy recession. They shouldn't be. As it just part of the cycle process as every spring will end with winter. Instead of afraid and panic, they should embrace it, understand it, and think positively toward every recession is a reset time of the game of economy (money). And it also can provide a better clean white sheet to start with for any economy reform, as a result of postmortem of previous economy model.


Thursday, 10 March 2011

What is the value of Money


Ever since Money is introduced, it has become the most "important" element that human perceived in today world. Money has the magic and power to turn a person to do whatever its take in order to get it. Therefore, it has been a very famous quote about money : " money is not everything, but without money, there are nothing!"

So what exactly this money is all about? Money by means, is just a medium of exchange. It represent certain "perceived" value by people to buy and sell goods. In the ancient time, people trade by simply exchange goods among them. It is called the system barter. There are no medium of exchange exist. The difficulty come, when they try to have a fair trade among people. Question such as how many eggs worth a chicken? Then, money is invented. Shell, gold, and silver are the first to introduced as money. Then revolution came, paper money are introduced to replace hard money, since the government think that it is much better off to print money freely then to be constrained by the limited supply of gold and silver. Years goes by, people has accustom to paper money. The mind framing has reinforced the money position in human mind. It become such a big impact to people life, which it become a new opium in new civilization. It become so emotional, that people will do "stuff" to keep it, and take it from others. The truth is, money has no value. It is just an idea of value, a deceptive perceived value by people. Money is just a piece of paper. A paper that could be turn into nothing as it is. The money has no intrinsic value nor a tangible value. What we want, is ins't the money, but the stuffs that money could buy. The real value is the foods, the cars, the cloths and the charities. Therefore, people should not being too emotional attached to the pseudo paper money, but be more more generous to bring out true value that money still can produce before its pseudo value started to be eaten away by many factors such as inflation, excessive cheap credits and irresponsible government policies.

So, money is just money, it is nothing but a piece of paper. We should be concentrate of preserving and bringing out a valuable contribution, innovation and invention for the holistic benefit of society and environment while it still can, rather than pursuing and giving up the real valuable assets (earth, mother nature, ethic, peace) for such paper money. However, sadly, as I speak, many are still giving up the true value to a pseudo value.

Tuesday, 1 March 2011

Future Outlook of World Economy


The world economy will go through a dramatic changes in years to come. From industrial age to information age, and now conceptual age, we had and has gone through plenty of boom and burst. Ancient economist had trying to understand the nature of economic, to put it into a simplified perspective for generation to come, for the benefit of society as a whole. Theory and economy model was discovered and create by the wisdom of famous economist such as Adam smith, John Struat Mill, David Ricardo, Parson Malthus, Karl Max, Veblen Thorstein , John Maynard Keynes and Milton Friedman; from laissez faire economy model, utopia communism to current socialism-capitalism. Yet, non of those economy model can or will to bring out a perfect system.

Since the breakdown of Bretton Wood system, the economy outlook has been the gloomiest ever since. Government, specifically Uncle Sam for its own benefit, whose currency is the international trading currency, can virtually finance its expenses by simply creating money out of the blue. Such phenomenal, so far had been accepted by most of U.S trading partner is due to the confident to U.S taxes payers ability to pay off the debt someday in future. As by more than 5 decades since WWII, U.S state had proven to be the strongest nation in the word, she had become an exemplar for most of the nations in the world to emulate its administration system, including economy policies. Therefore, to maintain its advantage position as a nation who possess cheaper currency, by definition, for every surplus develop nation received from U.S, they need to print as much as its own currency to avoid any surge in the its forex exchange rate. Albeit, tree does not grow into the sky. The world now had fall trap into a paper money (fiat currency system) world, that one day, people will realize the paper money they are holding now, is nothing but figment of imagination value, a ponzi scheme that created by our government. History can reveal the future, as people often repeat the same mistake. Weimar republic during early 1910s in German had well depicted the Scenario and outcome of paper money policies.

In foreseeable future, we will see how fiat currency system will collapse in the scale that human race never encounter before. The perceived value will shift in phase from money (paper) to something human really need. There is no turning back. The intervention of government will no longer helpful, but to exacerbate the problem. Therefore, we must prepare and face the problem once and for all, for the biggest economy reset in year to come. Only the adaptable can survive the changes.