I was so inspired to think about business. I bumped
to Tata in FB, one of my previous colleague in the Philippines. She is always
nice and I trust her since our friendship has a strong foundation way back
in the Philippines. She was my go to person in the Production and I worked
closely with her in order to shipped out the 200,000 yields when the Production
Manager left the company. I mentioned to her that I am looking for business
adventure. She happened to have a rice dealership business and in need of
finances to increase her supply. She supplies in their Company’s Cooperative
and the demand is too high that she cannot sustain hence additional capital is
needed. I feel that it is a good business opportunity since it has captured
market already and all it needs to take is to manage it wisely. It needs strong
coordination with the Wholesaler and the Coop Management to keep it going.
Looking in the cost analysis and the ROI is not bad
considering there is a chance to find supplier with lower wholesale price. The
business has a chance of 100% ROI in a year or 8.5% to 10% ROI (Return of Investment) per month for me
since I will just finance and somebody else will manage it. Not bad for a money
that will just be sitting in the bank. The bank will give us 1% APY (Annual Percentage Yield) if we are
lucky but that 1% interest rate will be taxed too so as a result we will be getting
lesser than that. So in context, this business is sweet, it is
a winning battle $$$$ :)
All businesses have pros and cons, and the downside
of this endeavor is trust issue but as I said I don't have any
problem with that so we will see. The other downside is it has no
assurance that the set analysis will accurately achieve since it depends on
what will happen with the factory where the Co-Op exist. It also depends on the
cost of the rice and how she will manage it.
Oh well, everything is a gamble so nothing to lose
if I will try it, if it doesn’t work then charge it to experience and try another one.
With the Cost and ROI analysis, I’ve realized that there is money in Rice Dealership business in
the Philippines. Eventhough there are so many existing dealers already,
but come on, Filipinos love rice, we ate rice at least 3 times a day or even
more than that. It is a commodity that every Filipino will buy no matter what.
