Tuesday, February 21, 2017

Amazing information appearing on Indonesia market

Following my recent visit to Jakarta I am amazed of the recent information on financial & economical level:

1. in March we can expect a tax amnesty to finish....following my memory there is a scheme in place, where the tax avoiding individual with resources outside of Indonesia is entitled to bring the money back and pay 5-10% of that money. All the cases are administrated by local banks many of them controlled by government with exception of Citibank

2. recently, as written on a blog before, I observed the pressure of OJK to use local IDR instead of foreign currency in local transactions and politely thanking to all who are doing that

3. the article in magazine describing the move for amnesty the main purpose is a budget loss of 2%, what means that in few than 30 years with this tempo we can expect the debt to overcome 100% with compounded interest

4. talks of BPPN are not taken on a market yet

5. growth of consumer finance with permission to accept deposits

6. monetizing of super old portfolios in few banks

7. stronger money outflow control within the economy reported by foreign banks

Saturday, February 11, 2017

Singapore & ASIA

Seeking for an investor in Singapore you need to:
a) establish company in Singapore
b) get it on a track, get one employee at least, pay for office
c) connect your group to SG entity
d) get the data from your branches around the region to be able to present to investor and your financial guy to understand what is he talking about
e) prepare an Investors Pitch....how to do that google it, a good sample is a free materials by Dragon law company
f) prepare 2-3 forecast
e) describe the product & see the advantages against competition
f) post your investors pitch on a relevant webpages -  like angels.co....
g) visit few investor pitching activities
h) go to accelerator if you need so
i) prepare to understand what is the value of the company....focus on future flow of money and discount it (f.e. 20% a year)
j) depending the value of the company you did calculate propose the share of company to be sold....  f.e. u calculate future amount of money as to be inflow of  20, 25, 30 and than forever 35 u will see the value of the company as 20/1,2 + 25/1,2^2 + 30/1,2^3 + 30/(1,2-1) = 201,3. You need f.e. 40 additional money to make this cash flow. Therefore you offer 20% of the company
k) seek the potential investors on a paid pitching meetings

Tuesday, February 7, 2017

China - small company - problems

Being a foreign owned small company in China has following financial/controlling issues:
- focus on sales not on spending
- try to break even by putting only paid invoices in the budget
- repeating the same financial mistakes over accouting period
- wrong cash flow planning
- short term financial focus
- asking for cash before focusing on return of the cash
- not dealing with RMB fluctuation
- facing an issue with local accountants