I'm a Filipino so RICE it is!!!!

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.