ENTREPRENEURS INSTINCT

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Experience of the writer

I.
a.

Discussing with Retired man and Outgoing Retired man

A retired man asked me, Sir! My pension allowance is all spent off for business trial just in 2 months. I asked him back, Have you made Projection Plan of Business or performing? he replied Not yet, I cant make it. And what should I do for next? Wow, what a difficult question! No wonder! I have doubtful to give answer. I said it to myself. And then I just said to him It might be an ordeal for you and might you get benefit from it. This man tries to build a business without any plan and has no experience at all. Do you want to know how much extra allowance he has got? It is Rp 700,000,000. (1 US$ = Rp 9,200). An employee asked me, Sir, I am going to be retired in 3 years from now, where should I find a job. I replied easily you should build a business not find a job! he asked me again I dont know what to do & how to start it! Wow, he asked me so enthusiastically. Finally, I also answered him seriously. By using Mixed Resources Method, I tried digging up his own potencies and started from his home whether his house is his own, how many your neighborhood people is, whether his wife can cook food deliciously? etc. Finally after 1.5 hours, he agreed to choose fish cultivation business because he has quite wide land, water and its other facilities that are rather supportable to build the business. And for the next step is He must make the performing or the business projection in order to not forget its process, an d there will possibly come up new ideas which you can note in the proposal or it can be used as a proposal to bank in obtaining fund support

b.

II.

An entrepreneurs Instinct

I have a rather interesting storyplease read it: In 1993 I bought a house in Bekasi, West Java Province, Indonesia. And, my office is in Harmoni, Jakarta, in distance of about 25 km. In that year, I went to office at 07.00 in the morning and I was there at 08.00, about in an hour. But, ..in the next 4 years, in 1997, I went to office at 06.00, I was there at 08.30 09.00, in 2,5 3 hours because of the traffic jam. Hence, I had to go to office more early in order that I was not late at office. My office hour was at 08.30. Well, as an entrepreneur what can you take as conclusion from the story above? It means people population in Bekasi is increasing. So that demand in kinds of product is going up to fulfill their demand.

Therefore.....Many business opportunities are open there!

III. BUSINESS OPPORTUNITY ANALYSIS

Let me explain as follow, Picture of Market Chance. This picture below shows Demand trend of a product.

Picture
Volu me

- Opportunity Condition

Demand (D)

Supply (S)

D>S, Available Opportunity D<S, Not Available Opportunity D=S, Balance Condition
Period
2002 2003 2004 2005 2006 At the moment 2007 2008 2009 2010 2011

Data Historical

Projection

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Look at Picture in your VCD. I divide demand trend in 3 conditions: 1. If demand > supply, so business opportunity is available and increases. 2. If demand < supply, so there is no market chance or decreases. 3. If demand = supply, is balance condition, called as cookies shares condition. As an example (cookies shares condition) If demand 50 million, and there are 4 companies so, mean income is 50 mill/4=12.5 million percompany. If you are in, so mean income is 50 mill/5=10 million per-company. Well, it is named condition shares cookies.

VI. Fund source election analysis

Sources of the business loan fund or its other loans are available much in market. Generally, each bank or non bank loan sources has different method and the amount of interest rate. . Steps for electing the loan source in order to lighten rather burden of the interest cost are: First: Used Method: a. Effective Method or b. Flat Method Second: the amount of the credit interest rate If the method is same, so the lowest interest rate is taken. And if the method is different, so must be analyzed. By Formula: Flat interest = 1,775 x Effective interest See the Table If 1% Effective Interest = 1,775% Flat Interest, and If 2% Effective Interest = 3,550% Flat Interest, and If 24%Effective Interest = 42,600% Flat Interest

Diagram

Compare of Effective & Flat Interest

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For more clearly, please observe the diagram of Flat and Effective Interest Comparison: - Flat Interest Area is the shaded area plus the not shaded area, and, - Effective interest Area is the not shaded area. For more deeply understanding, please observe the next example attentively: If you lend some money from bank and you must pay in installment in every one month or period it means that your debt balance is going down in every one month like stairs and triangles, so the actual interest is the amount of the interest rate multiplied to the rest of credit balance or is called as the effective interest calculation. As sample Loan Rp. 20,000,000 in 36 months, and interest 2% / month. The question is how much the installment / month is by using Effective and Flat Method? Answer: Flat Method: Rp 20,000,000 + 20,000,000 x (2%x36) ---------------------------------------------------- = Rp 956,000 / month 36 Effective Method: (See table, i = 2%, n = 36, column A/P), page 386 Rp 20,000,000 x (A/p,2%,36) Rp 20,000,000 x 0,0392 = Rp 784,000 / month Difference =Rp 172,000 / month Difference in 36 months = Rp 172,000 x 36 = Rp 6,192,000, quite reasonable Reader task: Compare the credit in Motorbike credit 2. 1. Community Loan Bank (BPR). State owned Bank and Private Bank.

Case Study HP Kiosk

A young man wants to have his own business; he has capita + Rp 15,000,000. I asked, Do you have already a business planning? He replied, Not yet. I asked him again, Would you like to buy my book? No, I wouldnt, I can later ask people. he answered. Would you like to answer my questions? I asked him. OK! he said. How many heads of household is in this compound? + 2,660 heads of household he answered. Ok. We consider 2,500 heads of household. How many HP is for each of heads of household, 1, 2 or 3? + 2 HP for each Heads of household he answered. How much rupiah is for the minimum pulse that must be paid every month in order that HP is not off? + Rp 50,000 he replied. Thus, minimal of total pulse purchasing for this one compound is Rp 250,000,000 / month. This is your opportunity, if you will build an HP kiosk I said. For example, sale of turnover per month is Rp 50,000,000. How much profit will you receive? Please watch my scratch based on the survey from some HP kiosks.
Pulse 100,000 50,000 5,000 - 25,000 Total Portion of Selling 10% 20% 70% 100% Sale of Turn Over per-month Rp 5,000,000 Rp 10,000,000 Rp 35,000,000 Rp 50,000,000 Margin 5% 10% 15% Profit per-month Rp 250,000 Rp 1,000,000 Rp 5,250,000

Rp 6,500,000

Note: HP = Hand Phone = Mobile Phone

What do you think; can you imagine performance / projection of your business planning which you will develop? He smiled while nodding his head...thats it what I am looking for! Finally, he paid the book 50% more than the initial price.

Building a business by autodidact and enthusiastically capital, that is not enough yet. Must have . HOW!