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ABSTRACT BUSINESS
LOCAL BUSINESS
ROAD PAVING SEASON:
EXPENDITURE EXPECTATIONS IN THE UPCOMING 2015 ELECTION YEAR
P
olitical campaign consultant Hal Evry once said that “In any election the special golden rule applies, he who has the gold, rules. The more money a candidate spends, the more likely he is going to win.” It seems that in T&T, successive political parties have followed this advice. Once election time rolls around, spending increases both on campaign advertising as well as various government projects to service the general population. What expectations can we have for the upcoming 2015 election? In the 2010 election, one estimate published in the press stated that the People's Partnership (PP) and the People's National Movement (PNM) spent in excess of $400 million to persuade just about one million electors. Former UNC Minister Trevor Sudama stated that it appeared to be “a financial competition and money game.” There were accusations that the PNM used state funds to campaign, though the People's Partnership may have spent more through elaborate and extensive TV, radio and newspaper advertisements, billboards, banners, stickers and pamphlets. On the brink of the 2015 election year, most commentators predicted that the 2014/15 fiscal budget would contain the usual giveaways. Rightly so, disability, public assistance, senior citizens’ pensions, senior citizens’ personal allowances and public officers’ pensions were all increased and the minimum wage, which was $9.00 per hour in 2010 has
Written by Crystal Cassie
been increased to $15.00 per hour. However, Marla Dukharan, Group Economist at RBC Caribbean stated that “the level of expenditure budgeted for 2014/2015 is marginally lower than the level estimated for 2013/2014—not characteristic of an “election budget”. This in itself warrants praise, and represents a major departure from the unfortunate norm.” The projected level of expenditure is $64.664 billion, and the overall fiscal deficit is 11.56% lower than that in 2013/2014, with the aim of balancing the fiscal budget by 2016. Dukharan continues that this is “prudently inconsistent
with the trend typically seen in the run up to a General Election.” Despite these conservative claims, in October 2014, excessive campaign spending is again at the forefront. People’s National Movement’s (PNM) leader Keith Rowley claimed the People’s Partnership administration is embarking on a $26-million election campaign using tax payers’ dollars, using the Government Information Services Ltd (GISL), electronic billboards and full page advertisements. He stated that the Ministry of Finance has made provisions within each ministry for expenditure between $2 million and $15 million to
finance the 2015 general election campaign, and called upon the Integrity Commission to investigate the situation. Minister of Finance Vasant Bharath retorted that “In fact what we are attempting to do, as have all governments in the past is to alert the population of the goods and services that government is delivering to them on a daily basis.” So we can expect that campaign spending will again be excessive, perhaps surpassing the $400 million in the 2010 election, since the People’s Partnership have much to do to win over T&T citizens after the many scandals that marred their 4 year reign. Campaign spending will be coupled with attempts to fulfil budget promises. According to Business Analyst Khaliq Ali, “PP wasn't voted into power, PNM was voted out, so the majority that UNC has is a façade. The marginals still remain from 2005...so the expenditure will focus here through promises and transfer payments.” For instance, the government promised that in 2015, close to 100% of the population would receive a 24/7 supply of water. The announced improvements to the road and highway network, the four new hospitals, 3,000 new housing units and major capacity building in the Police service may be rigorously pursued. Perhaps the population of T&T needs to demand transparency, accountability, good governance and getting politics right, to challenge the status quo and avoid wastage of tax payers’ money.
www.amgtt.com • NOVEMBER, 2014 • ABSTRACT BUSINESS
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ABSTRACT BUSINESS GUIDE
LOCAL BUSINESS
Are Trade Unions Overstepping Their Boundaries? Written by Crystal Cassie
T
he Labour Relations Code 1976, established under the Labour Relations and Industrial Disputes Act 1975 of Jamaica sets out what is considered to be the main objectives of the trade union in the Caribbean. It states that it is “to promote the interest of its members, due regard being paid to the interest of the total labour force and to the greater national interest. To achieve this aim, trade unions have a duty to maintain the viability of the undertaking by ensuring cooperation with management in measures to promote efficiency and good industrial relations.” By extension, Caribbean trade unions have undertaken several roles, including political, market, regulatory, democratizing, service, enhancement and welfare. In October 2014, amidst global panic about the spread of the deadly Ebola virus, Public Services Association (PSA) president Watson Duke criticised the government’s reactive response to the outbreak. This included the immediate ban on visitors from African countries with the Ebola virus and the establishment of the Ebola Prevention and Response Team, which would co-ordinate and manage all types of Ebola-related activities and develop a strategic plan. Minister of Health Dr Fuad Khan claimed that millions would be spent to procure special personal protective equipment for use by medical professionals to treat citizens 2
who may contract the virus, including head and face covers, goggles, face shields, trunk and abdomen aprons, rubber boots and shoe covers. Hazardous material suits, which offer more protection, were to be acquired. The Government is also setting up an Ebola isolation unit at Caura Hospital. In response, Duke expressed his lack of support for these measures and threatened to shut down Carnival 2015 if the country’s readiness to deal with the Ebola virus threat is not improved dramatically. He states, “We are all over this country. We have influence and we have the power to make things happen and change the direction of things. And when we say there will be no Carnival, there will be none. They are not ready. They have no medication, no test kits to test for Ebola. They have some jokey suits available... They do not know what they are doing. They are playing a hit-and-miss game. And so we have challenged them. Duke also called for a $10 million insurance policy and quadruple pay for all those public servants whose jobs put them at a higher risk of contact with someone with Ebola. These include health care workers such as nurses, doctors, ward maids, attendants, ambulance staff, workers in Immigration, customs, airports authority and the port. Khan dismissed this claim, deeming it unfair and “bordering on ridiculous.” But are Duke’s claims in fact
ABSTRACT BUSINESS • NOVEMBER, 2014 • www.amgtt.com
overstepping the boundary? According to the given role of the trade union to protect the welfare of its members, the answer is no. In fact, while the intended action of shutting down Carnival and paying insurances is reactive in nature, it forces the employer, the T&T government to take a more proactive approach to dealing with Ebola. “What we support is Trinidad and Tobago becoming ready to treat with Ebola….to make health care workers ready and all the persons at the ports of
entry ready.” This is especially important as the current health sector has been proven ineffective in controlling less other viruses like Dengue and Chik V. Many may argue that Ebola is just another excuse for the trade union to rally support and play the moral card. But when it comes to life and death, measures must be taken to protect the majority of the population as far as possible. As of 25th October, there are 10141 cases and 4922 deaths globally from Ebola according to the World Health Organisation.
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ABSTRACT BUSINESS GUIDE
LOCAL BUSINESS
The Financial Impact Of An Ebola Related Ban On Carnival
C
arnival lovers who may have waited with bated breath can now exhale and continue to gym or scout for the perfect gear and accessories! This as the government has given the all clear for the staging of the 2015 staging of the festival. The celebrations were threatened as a result of the Ebola virus which has predominately hit West Africa, resulting in close to 5000 deaths to this date. The situation became even more alarming when Thomas Duncan became the first person in the United States of America to become diagnosed with the virus. His eventual death forced countries around the world to be on the alert as well as put systems in place to protect their national borders. Since Trinidad and Tobago’s Carnival is associated with a heavy influx of tourists who come to enjoy our mas, pan and music, the government established a National Ebola Prevention, Information and Response team (NEPIR). This team comprises representatives from the National Carnival Commission (NCC), the military, prison and fire services, the Office of Disaster and Preparedness Management (ODPM), airport, health, immigration and private and public sector agencies. While there will be no cancellation or postponement of Carnival, strong preventative measures are being put in place. These include the establishment of robust screening operations at all ports of entry, the preparation of a quarantine and treatment center at Caura 4
and the establishment of systems which would allow for the swift and effective containment of those suspected to have the virus. How would the country have been affected if Ebola concerns had put a stop to the 2015 celebrations though? Mr. Kevon Gervais, Manager of Corporate Communications at the NCC stressed that his organization’s role is to plan, manage and control Carnival events. While he acknowledged that “Carnival is part of us! We all want Carnival to happen,” he noted that all energies should be centered around reducing fear and panic, facilitating the accurate spread of information and ultimately preventing the virus from reaching our shores through a coordinated effort from all relevant stakeholders. Mr. Gervais nevertheless hypothesized that there are numerous socioeconomic benefits related to Carnival. For instance tourists make substantial investments when they travel to the country and if they withhold their investments; vendors as well as the airline and hotel industry will suffer, to name a few. One of the most vociferous advocates for 2015 Carnival has been Lutalo Masimba, President of the Trinbago Unified Calypsonians Organisation (TUCO), Rapso artist and cultural activist. He has argued against overreactions and has suggested that no changes should be made to the 2015 schedule. According to Masimba, whose organization runs 5 calypso tents, a failure to stage Carnival has significant negative financial ramifi-
ABSTRACT BUSINESS • NOVEMBER, 2014 • www.amgtt.com
cations for the country, “The carnival impact on the national economy is in the zone of 6 billion dollars.” He also noted that employment was another area which would be affected in direct and indirect ways. Furthermore according to him calypsonians and soca artistes are some of the primary investors into the festival and their ability to see returns would be significantly diminished without the festival, “on a personal note a conservative estimate puts 15 million dollars as the sum calypsonians/soca artistes collectively invest on an annual basis just to produce music for the carnival.” Cultural activist Rubadiri Victor stated that Carnival accounts for $1.2 billion of the $1.7 billion which the Arts contribute to the economy annually. He noted that a number of citizens on small and large scales are involved in economic initiatives around that time of the year, “from massive concert extravaganzas costing millions to vendors selling hot corn or cold drinks.” According to Victor approximately 1/3 to ½ of the profits of some entrepreneurs is made within the relatively short Carnival period. Generally then a number of individuals benefit financially as a result of Carnival, “for thousands of artists in Pan, Mas, and Calypso, this is their time to shine and earn some form of remuneration for their Art... on a sliding scale the top Soca performers could earn between $750,000 to $25 million at Carnival time...”
Victor however suggests that some benefits can be derived from Ebola-ban Carnival related debates. This is so since non-Carnival art or non- Carnival cultural experiences do not receive adequate financial fuel or general support from the Government and other investors due to the skewed focus on Carnival. “The cancellation of Carnival could be a blessing. It would force our Elites to diversify their spend across the fascinating variety of creative products being produced in T&T. In music alone we have the fact that most of the music produced in the country is non festival music- Trini rock, reggae, hip hop, rapso jazz, etc.” Therefore while he defends Carnival, Victor is keen on looking at the bigger picture, even acknowledging that in some ways the festival itself could benefit in the long run, “an opportunity like this may even lead to a Renaissance in the Arts as it forces a more democratic spread of the Art dollar, and it may also give a dying Carnival that extra breath necessary to catch itself and do some of its own introspection and restoration...” So the show goes on! We can only hope that preventative measures are indeed effective… not simply to satisfy fete goers and masqueraders but also to allow nationals to reap the financial rewards which are habitually reaped during the season. If health and financial concerns can be successfully addressed we can definitely take a dance to that!
Unprecedented past, unequalled present, unlimited future 100 years of indigenous banking, 21 years of firsts, two concurrent awards from World Finance Magazine 2014: Best Retail Bank, Trinidad and Tobago 2014: Best Commercial Bank, Trinidad and Tobago Winning two such awards in a single year is global recognition of our ongoing commitment to put you first.
ABSTRACT BUSINESS
EYE ON FDI
THE POTENTIAL EFFECTS OF EBOLA ON INTERNATIONAL TRADE Written by Leah Lewis
I
t would appear that the Ebola Virus Disease (EVD) is a new virus due to the frenzy it has managed to create throughout the world. However, according to the World Health Organization, (WHO) Ebola has existed since as early as 1976. It first appeared in 2 simultaneous outbreaks, one in Nzara, Sudan, and the other in Yambuku, Democratic Republic of Congo. The latter occurred in a village near the Ebola River, from which the disease takes its name. Fast forward to 38 years later and it has arisen as a health pandemic capable of drastically reducing our population index if not managed aggressively. In March 2014, an outbreak occurred in West Africa and was described as the largest and most complex Ebola outbreak since the Ebola 6
virus was first discovered. With these stark statistics looming over our heads how do we continue to exist as an economy when the driving force, our human network is in grave danger? International trade is an avenue that connects the entire world and by extension generates vast incomes to all economies involved. The fluency of this Ebola virus disease also means that it possesses the potential to be transmitted globally just as quickly. International experts have expressed their concern over the impact this virus has already had on the affected territories and can pose for international trade. The first line of trade being affected is labour. Those affected will obviously be unable to contribute to the GDP and those unaffected may be so consumed with fear that they
ABSTRACT BUSINESS • NOVEMBER, 2014 • www.amgtt.com
opt not to work. This has been the case with the world's largest steelmaker ArcelorMittal which saw a disruption in work at its iron ore mine expansion project in Yekepa in Liberia, after contractors declared "force majeure" and moved people out of the country. These West African territories are heavily dependent on agriculture so with a threatened labour force at stake, the next impact is an imminent food shortage. In efforts to curtail the spread of the disease vast regions have been quarantined, resulting in food production at a standstill. A direct result of the labour shortage may be low levels of production on cash crops such as palm oil, cocoa and rubber. This in turn can also result in rising prices and lower domestic harvests and by extension also impact the inter-
national food trade business by reducing the purchasing power of countries and inhibiting food access. Regions that are heavily dependent on agriculture will suffer the most. Tourism, a huge contributor to these economies may also be affected. For instance, in Sierra Leone, commercial banks have altered their schedule by 2 hours to limit contact with clients while hotels have already begun downsizing. Another devastating effect on trade is the closure of borders and the suspension of flights, which would limit the ability of countries to export and import goods. If not managed aggressively Ebola possesses the potential halt trade entirely as it may impose food security issues as well as transport risks which are huge engines of international trade.
ABSTRACT BUSINESS GUIDE
BIZ HEALTH
SMALL BUSINESSES AIM TO CASH IN AT CHRISTMAS
I
n October 2015, the University of the West Indies undertook graduation exercises for some 7000 students over six (6) ceremonies on three (3) separate days. The University of Trinidad and Tobago also recently undertook similar exercises, celebrating individuals who would have completed a range of programmes within the institution. In Trinidad and Tobago there has been an increase in the existence of tertiary institutions over the last few years and individuals of all ages are taking advantage of the educational opportunities which now exist. Unfortunately many new graduands are faced with the challenge of transitioning from academics to the world of work simply because there are not enough jobs to absorb the large pool of qualified persons which the country now hosts. As a result of these circumstances entrepreneurship has been touted as the next best solution and people across the board are encouraged to own their own business. Some have taken up the challenge and there is now a plethora of small businesses within the country. We have entered the season where the birth of Jesus Christ is ac-
knowledged … the season of giving ... the season of sharing. However this is also the season of spending. Given that Christmas is becoming significantly commercialized, we decided to ask a few businessmen and women the way in which the profitability of their entities is affected by the various seasons especially Christmas. Food is heavily associated with Christmas. In Trinidad and Tobago we enjoy black cake, Punch de Crème, Pastelles, Ham, Turkey and the list goes on. With the range of organizational dinners which occur, caterers may find the Christmas season in particular to be quite profitable. Fayola Wilson of Gemme Caterers and Events which specializes in food, beverage and event planning stated that work around the Christmas season is “through the roof.” She identified that her business receives approximately 30% of its annual profit around this time of the year. Jobs are usually obtained from personal and commercial clients and a few charity events are done as a means of corporate social responsibility. It is worthwhile to note that the increasing demands of work have made it difficult for individuals
UNFORTUNATELY MANY NEW GRADUANDS ARE FACED WITH THE CHALLENGE OF TRANSITIONING FROM ACADEMICS TO THE WORLD OF WORK SIMPLY BECAUSE THERE ARE NOT ENOUGH JOBS TO ABSORB THE LARGE POOL OF QUALIFIED PERSONS WHICH THE COUNTRY NOW HOSTS 8
ABSTRACT BUSINESS • NOVEMBER, 2014 • www.amgtt.com
to personally complete dishes which would complete their Christmas menus. As a result Ms. Wilson stated that personal orders have been on the increase over the past few years for items which were traditionally done within the household –“people have less time to get the traditional stuff done in terms of the Trini Christmas experience like baking bread and ham.” This development while appearing initially strange has increased the profitability of her business around Christmas time. Interestingly while Gemme Caterers and Events does not operate for Carnival, Wilson noted that in the August period 50% of her annual profits were made. This ‘Summer’ period which was not traditionally counted as a major season was deemed the best time of the year for her business because of the proliferation of children’s camps which have come into existence within recent times and which require catering services, ‘school is out, nobody is cooking ….” In terms of what can be done to support business
women like herself, Wilson highlighted the importance of business registration and sound structures given that there are programmes which can be utilized to the benefit of the organization if this is the case. For instance the government has an initiative called the Fair Share Expo where organizations which have a VAT registration number are placed on a database and are solicited for suitable employment opportunities. However apart from focusing on external assistance Ms. Wilson focused on what the entrepreneur can do for his or her self. Strongly advocating empowerment, she called for individuals to “invest in advertising and marketing on social media.” Alternatively for those who prefer nontraditional methods, flyers can be inserted into newspapers, commercial institutions like banks and schools can be visited, sampling can be done in public arenas like malls, and banners can be placed in strategic locations. Young entrepreneur Arvin Isaac owns Naalri's Photoplanet Limited which has been operating for six (6) years. Wed-
ABSTRACT BUSINESS
BIZ HEALTH
ding photography represents his core business. In the past the bulk of weddings traditionally occurred at a particular time of the year like June perhaps. However this is no longer the case, as weddings are being held throughout the year. “There is no longer a traditional wedding period where there is a glut of weddings. It's more evenly distributed at least in terms of our bookings.” Naalri's Photoplanet Limited also provides photography services for Christmas dinners, concerts and also does family portraits. Isaac believes that “a true entrepreneur innovates to maximize profit throughout the year.” Thus his business is tailored to meet the demands multi seasonal events and profit is therefore generated throughout the year. Nevertheless while for him profit is not seasonal based, he emphasized that since Christmas was associated with increased spending this therefore manifested in increased revenue for his business during that period,
“Christmas is a time of spending so if I were to choose a max profit period, it would be Christmas.” Isaac suggested that mentorship and financial investing advice could be provided to small businessmen in a bid to improve their effectiveness. But the Christmas season doesn’t always translate into increased revenue for entrepreneurs. Justin Jocelyn Richards, a personal trainer who operates out of the Life Fitness Gym, analyzed that Christmas actually represented his slowest period. Instead there was a peak for Carnival, “Christmas always affects my business because Christmas is lime so once that season reaches there is always an overall reduction in client attendance.... Aerobics classes even close off midmonth because the limes get to them and then for Carnival there's a peak... Because everybody wants to get fit for Carnival they want to lose the weight they put on for Christmas...” On the other hand the ‘Sum-
mer’ holiday period also represented a decline in revenue as most clients opted to travel and vacation during July/August. Richards lamented that while he might be able to operate more independently, effectively and profitably within his own physical space, it was extremely difficult for persons within his profession to acquire loans due to what was deemed a lack of job security by relevant financial institutions. Loans were necessary to purchase equipment, the majority of which needed to be sourced from abroad. Therefore he
suggested that “more should be done to provide loans for people like myself… there is a demand for it. Look at how many gyms there are in Arima alone and they are full.” Therefore it is apparent that the ability of a business to capitalize on a particular season depends on the nature of the business. While furniture store chains, banking institutions and other larger business entities may experience increased revenue around Christmas time or any of the other seasons, it is important to also pay attention to the entrepreneurs who operate on a smaller scale. In this small sample useful suggestions for the improvement of the business experience of these individuals have been offered. It might be useful for wider forums to be held on a consistent and frequent basis among this group of persons in order to share experiences, suggestions and best practices as this would benefit nationals as well as the national economy at large.
www.amgtt.com • NOVEMBER, 2014 • ABSTRACT BUSINESS
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ABSTRACT BUSINESS GUIDE
BIZ HEALTH
Projected Christmas Shopping Trends Revealed
T
he Christmas season is fast approaching and both consumers and store owners are gearing up to what can be a mutually beneficial time of year. For businesses, this time of year can often generate vast amounts of revenue, provided that the consuming public shops with a full purse and an open hand. Over the years the Christmas season has been shrouded in a myriad of shopping techniques or trends utilized by both parties to acquire maximum quality for either their product or the purchase being made. Businesses have decided to begin stocking their Christmas items about 3 months in advance. This is done in an effort to accommodate the customer that is looking for a bargain before the season rolls over. According to PWC and Strategy’s 2014 holiday research, consumers purchasing decisions, what they will buy and which shopping channels will be utilized to do so have allowed the emergence of two distinct groups of shoppers- survivalists and selectionists. While this statistic may not ring true for the average Trini, it’s a good marketing tool to keep in mind, as not all consumers spend as care free as was the case within previous years. Locally, outside of Christ-
mas advertisements and the pre-sale here and there not much is being done to charm the customer into spending. Of course, although our current economic status appears to be quite stable you never know what the election year ahead may hold for both businesses and consumers. Some store owners have started to monitor product popularity to determine quantities to maximize on revenue interests instead of previous bulk stock that may have remained on their hands. The average consumer is a bit more meticulous with their purchases but during this time of year luxury and social gratification often win. The early shopper now begins shopping from as early as January, when Christmas goods are marked down drastically to get rid of left over stock. One customer highlighted what she calls sales marking. This occurs when consumers mark specific sale points throughout the year to purchase goods so as to get the best price. Research based shopping is also a vastly growing trend among consumers. No one wants unnecessary surprises so before purchases are made people have started looking for reviews. According to Google research, consumer buying and information gathering has grown extensively for 2014. Statistics show that 52%
THE AVERAGE CONSUMER IS A BIT MORE METICULOUS WITH THEIR PURCHASES BUT DURING THIS TIME OF YEAR LUXURY AND SOCIAL GRATIFICATION OFTEN WINS 10 ABSTRACT BUSINESS • NOVEMBER, 2014 • www.amgtt.com
of online smartphone shoppers used their phone throughout the process. Since consumer buying behavior is now more research driven in nature, a good point for businesses to note would be to invest in pop up app ads since consumers use their phones for most purchases. Of course, online shop-
ping has become one of the most popular modes to make purchases as it saves the consumer time and is more convenient. Despite all these new trends nothing beats the last minute shopper or laggard who waits for the last minute sale to get previously highly marked items.
ABSTRACT BUSINESS GUIDE
MONEY MATTERS
Ways You May Be Losing Money Daily
I
f you are reading this magazine, money is probably important to you. Nobody likes to lose anything that is important to them. Therefore, it is just as necessary to note how not to lose money as it is to know how to make money. Here, we take a gander at ways you may be losing money that you constantly overlook. Not Maximizing Subscriptions It may not look like you are losing money when there is not a visible monetary exchange going on daily, but you do lose money daily on unused subscriptions. For example, look at your cable package. You probably pay for close to one hundred channels when you probably watch around eight of them (sporadically to booth). In fact, there are people who pay for cable and watch movies online or view Netflix most of the day, only to watch basic networks for the 7pm news and nothing else. See what we are getting at? The same applies with your neglected gym membership and even timeshare facilities. Trinidad has a ton of people who have cellphone data packages when all the person uses is Facebook. These companies are making a mint off of you while you waste hard earned cash. Poor Shopping Choices Everyone keeps going off on savings. However, are you really saving if you are buying something you don’t need? Take a look at your wardrobe. It probably pales in comparison to that of your companion’s, but that doesn’t mean it is ideal.
More than half the stuff you own probably isn’t being used. In fact, the average man only uses 30 percent of his wardrobe. That means 75 percent of the time he has spent money badly on something that depreciates in value. A lot of that stuff was bought because it was on sale, but you would be better off focusing on a few quality pieces that will be used. Look at everything you spend money on as an investment. Making Late Payments Many of us have loans or other fees that need to be paid monthly, weekly or however the payment plan states. You may have bought something on higher purchase with a reasonably low interest rate. That is fine. The problem is when you do not attack these payments early. Every time you pay a late fee you lose money. Penalties on payments are hardly ever accounted for in budgets and they should not be. Why pay a penalty in the first place? The better thing would be to make the sacrifices needed to pay on time and not overspend. Not to mention, this helps to improve your credit score. If necessary, download an app with alerts to keep you abreast of payments. Mark the dates on a calendar. Do whatever you must. Just be sure not to spend unnecessarily. Buying Instead of Renting This one may come as a shocker to you since we’ve always heard the saying “rent is dead money” or “it is better to buy than rent.” That is not always the case. Renting instead buying can be beneficial at times.
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For instance, when it comes to getting equipment for home DIY projects, it makes no sense buying equipment that can be cheaply rented as a one off. Picture buying a pressure washer to power wash your yard and walls once – maybe twice – per
year. Unless you plan to turn it into an income source and rent it out yourself, the best bet is to rent. This goes for most tools since the average person is not equipped to handle them. It is best to spend a fraction of the cost and get the best results.
ABSTRACT BUSINESS GUIDE
FUTURE FINANCE
Maracas Beach To Get A Facelift For $89 Million
S
andy shores, gentle waves, palms trees and bake and shark are usually what most people associate with Maracas Beach. Huffington Post even described it as such, “Maracas Bay is as close to perfect as a beach can get” earlier on this year. However, despite being known for it’s culinary and scenic offerings, this refreshing escape, close to the city of Port of Spain, also has a rich historical background. The natural bay, which is nestled about 30 minutes from the capital, was not accessible pre WWII. It was during the WWII that the U.S. Army Corps of Engineers built the road that now leads from Maraval, just outside Port-of-Spain, to Maracas. Fast-forwarding to present times, developments to the beach are expected to occur within in the near future. This is according to a statement made by the Minister of Tourism, Gerald Hadeed. Speaking at a Post Cabinet press conference at San Fernando Teaching Hospital, Hadeed admitted that the Cabinet has already approved $89 million for the facility’s facelift. The upgrades will include the construction of a road, repaving of the car park, a new water treatment plant, toilet
facilities, the demolition of existing vending huts as well as the construction of new huts and an administrative office. In addition to this the Minister also proclaimed that the facelift would help to easy the traffic experienced during busy periods. “On a weekend or on a Sunday and public holiday there is a lot of traffic into the Maracas Beach facility. The reason for this is that the majority of the traffic stops as people cross the road to go and get their bake and shark or go back to the car park. The road will no longer be there. It will be at the back of the car park. You will go into Maracas Bay and park your car so there will be no impediment of anyone crossing the road to stop the cars from travelling smoothly.” He admitted though there were plans by the previous administration already in place, with the refurbishment projected to cost $257 million but a significant reduction was made to the project by the current government. Work is expected to start in December with a completion date, nine months thereafter. Planning minister, Bhoe Tewarie confirmed that the ongoing work would not hamper beach goers and vendors. The Ministry of Works will be responsible for the project.
IT WAS DURING THE WWII THAT THE U.S. ARMY CORPS OF ENGINEERS BUILT THE ROAD THAT NOW LEADS FROM MARAVAL, JUST OUTSIDE PORT-OF-SPAIN, TO MARACAS 14 ABSTRACT BUSINESS • NOVEMBER, 2014 • www.amgtt.com
ABSTRACT BUSINESS
FUTURE FINANCE
NEW AND IMPROVED 50 DOLLAR NOTES TO CIRCULATE FROM DECEMBER
J
ust in time for Christmas, the Central Bank of Trinidad and Tobago will be offering the public a gift of gold. Well goldencoloured notes that is. The 50 dollar bill which was reintroduced in 2012 after a 33 year absence will be rebranded with a view to better public acceptance. The current 50-dollar note looks very similar to the 10-dollar note and has not been positively received, but the need for the particular denomination was very clear. The new bill will be gold in colour and made of polymer (like Canadian currency) as opposed to the cotton bills to which we have become accustomed. The new notes will also feature a transparent plastic area with a metallic holographic
image as a safety feature. Central Bank Governor Jwala Rambarran spoke to the media via press conference at the Central Bank Tower where he detailed some of the reasons for the introduction of the new notes. He explained that there was confusion among the public because the notes were not distinguishable. He also said that many people held on to the bills, as they believed the notes were strictly commemorative as they were launched as part of our 50th Independence Anniversary. “Most of you will know that the current $50 was olive green in colour, which made it a little difficult to distinguish between the current $5 and $10, especially in low light and at night. Sometimes you weren’t too
sure what you were receiving and some persons actually gave away their $50 thinking it was a $5,” said Rambarran. He also detailed why the choice of the new polymer fabric was being used. “Polymer actually lasts a lot longer than cotton notes. Our research has shown that polymer notes will last at least as twice as long as a cotton note which means that in a typical five-year cycle, I would only need to really issue one batch of polymer notes versus three batches in a five-year period.” In addition to the increased longevity of the notes, he described polymer as more secure and virtually impossible to counterfeit before stating that these notes are “the future of bank notes.”
Questions were raised about the ability to use the new polymer notes in Automated Banking Systems. Rambarran assured that they would be ATM ready in early 2015 adding that “we have been working closely with the banks” to ensure this happens. So far, feedback from the general public has been good as they welcome the introduction of the new, more easily decipherable notes. The new legal tender is slated to be launched on December 13th and will enter circulation two days later. Much like the 50 dollar notes launched in 2012, these bills will also be used to commemorate a special moment. The Central Bank’s Golden Anniversary celebrations take place in December 2014.
www.amgtt.com • NOVEMBER, 2014 • ABSTRACT BUSINESS 15
ABSTRACT BUSINESS GUIDE
TRUMP CARD
MILES ABRAHAM
Executive Producer and founder of Simply Intense Media
M
iles Abraham is the Executive Producer and founder of Simply Intense Media, an award winning Caribbean based Digital Agency. Saying Digital Marketing is his passion is an understatement. He is constantly thinking of creative strategies and digital innovation for his client’s brands. The speed with which digital technology is constantly evolving is the same as the creative ideas of this young entrepreneur are taking shape. It is his firm belief that in order for a company not to be left behind, Digital Business Transformation must be incorporated into the company’s overall marketing initiatives and therefore, he helps businesses to understand how to create the footpaths to Digital Readiness while preparing to build a road to Digital Success! His past experiences working at international agencies on continents such as Asia and Europe and countries like the United States paired with his lateral thinking allow him to hold a vision and an understanding of what works for interactive media and the Internet that ensures progressive thinking for all of his client’s online solutions. Maybe that’s why his small but agile Agency has won a total of nine Caribbean Advertising Awards in Key Digital Categories including best Game, Social Media Campaign & Website. We were able to interview this entrepreneur for this month’s Trump Card. Read about it down below. ABG: Information on Simply Intense Media is readily
available on the website, but in your own words tells us a little about Simply Intense Media… MA: That’s a big ask. Simply Intense to me is an innovative company. From the start it’s been about doing better work, work that stands out in the crowd of Trinidad’s media and advertising industry. Innovation is doing something better than it was done before. We innovated when we first began with very progressive work, design and overall marketing ideas. We were also the first firm to actively offer Social Media Marketing as a service in Trinidad & Tobago. We were the first firm to build a Mobile app for Trinidad’s top 20 firms. We won the first ever Digital Marketing Category award in the local advertising awards. So in my own words and to keep it simple we are innovators, we envision the future for our clients and guide them on how to get there. ABG: Can you tell us a little about the path that led you here? MA: I’ve been asked this before and it’s a long story. I will try to get to the core of it quickly. When I was young I was diagnosed with ADD. Yes the actual ADD, this was verified by UK doctors not American who at the time were saying everyone in the US had ADD. Naturally school was harder than usual for me but I was always supported by my parents, told I could do anything I wished with my brain. A lot of love and support, I am forever indebted to them for making me feel this way all my life. My first internship was at In-
terserv Limited. Yes the first ISP in Trinidad. I was in there paying to use their computers so much that they offered me a stipend to help around the office. This was the early 90’s. The Internet was very new. My first paying job ever, was working at a very bad place, for very evil people my talents back then at 16 were exploited and I fast realized I would never work for anyone. Entrepreneurship was my way forward. I started my first actual business ‘Optik Technologies’ with a lot of older people. That company went on to do great things. I think just after I left the team won the EY Trep of the year awards. Anyway fast forward, I moved to Hong Kong when I was 19 for a year or so to do an internship because someone over there liked my website and luckily my uncle, a successful entrepreneur himself was working there. So I ‘shacked up’ with him and went to work everyday for a year working with some very talented people in the multimedia world. I came back home and realized all I had learnt was not even close to being a reality at home. I went to do my degree in the UK. Then freelance for various agencies in Europe for a few years finally finding myself back here with a vision. It was Simply Intense! ABG: Are there plans to include traditional advertising in the current business model? MA: We are exploring options in this arena very closely. ABG: What are some of
the trials Simply Intense is currently facing? MA: Trials or challenges? I don’t see business as a job. I see it as a painting. You use the right tools, try them and if they don’t work change them. So a challenge is trying things and learning what works. ABG: In your opinion, how much of a client’s budget should be dedicated to digital media? MA: ALL! (Laughs) Just kidding. I think every business is different. Every objective is different so every strategy must be different and that comes right back to budgets. We work with all kinds of budgets to achieve goals. I advise in order to determine what you need to be spending you must try things out. See if they work then increase your investment. However if I had to say an actual percentage, start with 20% of your budget try things, see what works and evolve your strategy. Globally ad spend in major sectors on digital is upwards of 65%. Digital is the center of global ad campaigns. Traditional has taken the peripheral budget used mostly for reinforcing a campaign, which is mostly run online. We are seeing this shift in thinking in T&T. How many radio ads do you hear that end with ‘Check us on Facebook’ or a website URL. This is a clear sign of the shift. ABG: There are many types of software allowing persons to build their own app or even website. Why then should persons hire an agency to do this for them?
www.amgtt.com • NOVEMBER, 2014 • ABSTRACT BUSINESS 17
ABSTRACT BUSINESS
TRUMP CARD ABG: If you could change anything about how business is done in Trinidad and Tobago, what would it be? MA: Cheap is best! This is an industrial age ethos that has stuck in Trinidad Business. The knowledge economy is built on very different principles.
MA: Those tools are great. We would advise anyone who wants to do the basics to use those products; even we use them at times. What we provide is a holistic view of a Business Strategy, Creativity, Technology and Content as it relates to the objectives of the business. We’ll holistically approach our clients business and advise on all aspects of success online, we ensure we’re always working with the latest trends and best practices and our team is here to service the client in whatever form suits their strategy. No App design tool or website will ever be able to do that. We are a consultancy first, a production shop second and a media agency third. ABG: In your own words, what sets you apart from others in your field? MA: We always start with “Why?” Most companies sell whatever is popular at the time. We have built a business that starts with the desired outcome first or the “Why?” which often sees clients come in the door saying they want an App and leave with something totally different that is much more beneficial for them. This builds trust and drives repetitive business and good relationships. ABG: Where did the ideas originate for some of your successful campaigns? MA: Each campaign we love comes from a collaborative ef-
fort of various types of thinking brought on by putting the right types of teams together for each project. Our team is what makes up the successful execution. Digital requires a lot of different skillsets to get it right. ABG: Tell us about some of SI Media’s accolades. MA: Right now we hold 3 Gold Addys 6 Silver & 1 Trinidad Advertising award over the last 3 years. It’s not big compared to the 20 and 30 you will see from the larger agencies, but all our awards are in the Digital arena, of which you may see a handful won by other agencies each year. ABG: What are some digital trends that you are currently excited about? MA: We just opened a new division of Si Media focused on technology tied to real life integration of Social Media. It’s called Niche Event Technology. Look out for what we are doing in that area it’s sure to be exciting ABG: How much time do you spend acquiring or refining your skills? MA: 16 hours a day perhaps? Anyone that knows me knows I don’t stop working. Once again it’s because I don’t see this as work it’s more like a mission. I read a lot of online content; attend a lot of global industry meet-ups and conferences. I
18 ABSTRACT BUSINESS • NOVEMBER, 2014 • www.amgtt.com
AMG: What were some of the challenges you faced in the early stages? MA: Learning that not everyone will not share your vision and drive overnight. think our competitive edge is driven by knowledge of the latest and greatest of Digital. To that end I drown myself in it. I then select the areas that have the most meaning to me or most relevance and focus on those. I think bringing the right team members to pilot the use of the technology throughout the company and to our clients, Research, Timing & People are key to refining the skills or collective skillset of the business. ABG: What are your primary tools and resources? MA: I see Smart People and Client Relationships as great resources. As for actual technology: Todoist, Basecamp, Mailbox by Dropbox are my big winners at the moment but that will change in 6 months. ABG: There are countless YouTube tutorials on using various digital tools and software. How important is having a degree in marketing or similar field of study, for this type of industry? MA: You’re talking to someone who hated school most of his life. However, when I did my degree I realized 2 things. To me a degree is not about how great your grades were. It’s more about the ability to say I am going to do this for 3-5 years. And do it well; secondly, confidence. When you know your subject no one can take that away from you.
ABG: Can you describe the creative process you go through when starting a new project? MA: In short, I like to let things sit in my mind. The longer they sit there the more inspiration I can draw from the world around me to make it right. ABG: Who are some of your mentors that you follow for inspiration or learning? MA: Paul Pereira, the guy who brought the first ISP to Trinidad. Steve Jobs for all he was as a person and the people that surrounded him in the second coming of Apple. ABG: What are some of your goals for the next five years both professionally and personally? MA: Do work that drops jaws. ABG: What is it like being a young entrepreneur? MA: Exciting! ABG: What advice would you give to someone trying to enter a similar field? MA: Never say die. And whatever you do, do it with style. ABG: Any final thoughts you would like to share? MA: Your journey is your journey, embrace new things and get outside your comfort zone. That’s where the magic happens.
ABSTRACT BUSINESS
BIZ TECH
CABBAGE, POTATOES… THERE’S AN APP FOR THAT
T
he Digital age has profoundly altered the way in which many of us work and play. For many it lends assistance and simplifies processes. This is exactly what the Trinidad and Tobago’s farmers can expect with the invention of AgriExpenseTT. The app will allow farmers to make more use of technology in their dayto-day farming practices. AgriExpenseTT was developed by three of UWI’s Department of Computing and Information Technology students - Kyle De Frietas, Stefan Boodoo and Jherez Taylor. They got started during the summer as part of a student internship offered by the Department. It was offered under the AgriNeTT initiative led by the University. The task? To develop a solution that will allow farmers to keep track of their costs of production. They were able to do so within a twomonth timeframe.
While speaking with one of the developers, Jherez Taylor, he admitted that it was definitely challenging, as it was their first foray into serious application development. He said “Stefan and myself are both completing a Bsc Computer Science and we saw it as an opportunity to grow our skill set.” The initial step was to conduct field research within the industry. Therefore the students made several trips to the Macoya market and to farms during the development process in order to glean input from farmers. They demonstrated the installation process and gave them an overview of the capabilities of the app. Taylor said, “feedback was positive and we were able to take and implement a few of their suggestions. We also came away with an idea for another app.” He revealed that the new app they are currently working on will allow users whether they are farmers, consumers or
wholesalers to set their interest in buying and selling a particular produce. The app will then automatically send the user a notification when a matching party is available within their geographic area. He further admitted that the app is meant to “simplify the process of produce transactions by providing meaningful matches. For example, Farmer A has X amount of potatoes available for sale at location Y, he uses the app to set this. Consumer B is looking to purchase potatoes within their area, they use the app to set this. The platform then sends a notification to both the farmer and the consumer along with their details so that they can negotiate the transaction.” At the moment AgriNeTT is available on the Google PlayStore and is free to download. According to Taylor, there have been between 50 to 100 downloads but that figure does not include manual installations.
One Tableland farmer, Navin Ramroop said he was elated about the software, which should eliminate about 60 per cent of the bureaucracy involved in buying and selling. He said the app would also allow growers with fragile produce to get faster access to buyers. However the app has also received regional exposure. The University demonstrated AgriExpense in Suriname as a part of the Caribbean Week of Agriculture. Taylor said “it was really great because we were there to compete in the AgriHack competition and it showed that we had prior experience in building and deploying an app. Guests and industry figureheads from all across the world were present and the interest was remarkable.” If you would like to send feedback on the app or are interested in partnering you can email DCIT.Agrinett@sta.uwi. edu.
www.amgtt.com • NOVEMBER, 2014 • ABSTRACT BUSINESS 19
ABSTRACT BUSINESS GUIDE
BIZ TECH
Great Ways To Earn Cash Online
T
he information age has brought with it myriad possibilities for human development and economic growth. While most people try to take advantage of numerous online resources at work, school or in the home; what most people overlook is the fact that with the ability to access knowledge online also came the ability to cash in on it. There are great ways to increase your earning potential from behind your computer screen. Here are some ideas that you may not know of or just haven’t had the cajones to try. Information Marketing/Teaching This is probably the trendiest of online capital making initiatives at the moment. Everyone is looking for quality information on a variety of different topics, and with the aid of your Kindle or sites like Amazon CreateSpace you can quickly publish & profit from your ebooks and audio courses. Like any other business you have to understand how it works fully, before just diving into the game. To get started with this business model, you need to pick a niche market, figure out what they want, and give it to them at the right price. Plus, you don’t need a degree in education to teach people
how to do something you know inside and out. It’s all a matter of teaching something you are passionate about. Create instructional packets and videos for download from a website, or schedule real-time Skype lessons with clients. Social Media Consultancy More and more firms have realized the importance of having this done. Of course, the bigger companies may already have that resource handled. However, there is a need for this across the small-business sphere. Small businesses can hardly afford to take time off to do social media marketing and sadly, that is the most effective tool for many small businesses. This is not just about updating Facebook and Twitter though. If you want to make this work for you, you have to provide an entire social media marketing
DOMAIN DEALING CAN BE VERY PROFITABLE WITH A BIT OF COMMON SENSE AND SOME LUCK. DOMAINS ARE INTERNET REAL ESTATE AND LIKE REAL ESTATE THEY COULD BE CONSIDERED AS AN INVESTMENT 20 ABSTRACT BUSINESS • NOVEMBER, 2014 • www.amgtt.com
strategy for each client that is specific to his or her needs. Big firms can easily let an intern or staff member do it. It is really the work of a consultant, who will help them determine the best tactics, posting schedules and content for their target audience. As their follower count grows, so will your business. A Domain Dealership Many a business owner and celebrity will probably hate you, but that does not mean they won’t need you. Domain dealing can be very profitable with a bit of common sense and some luck. Domains are internet real estate and like real estate they could be considered as an investment. Don’t just buy any domains, spread your risk with a portfolio and make sure you hold out for the highest price possible. Learning how to connect with the end consumer, rather than other domain dealers, will enable you to get the highest price possible for your
domains. If you have a bunch of common enough domain names that people may want to purchase after some time, then you are in luck. Health/Nutrition Coach As much as our lifestyle habits have become worse over time, Health Consciousness is also trending worldwide. When it comes to nutrition, we’ve all seen the article on little old Trinidad and Tobago being one of the world’s most obese nations. Well many people want to lose weight or alter their body image and do not know where to start. Others just need motivation from someone who has been there and done that. Certified dieticians may have an edge, but online it mostly boils down to ‘relatability” as well as your knowledge. Start by offering meal plans and diet counseling to your client base. Soon, you could be helping people get healthier through your online service.
ABSTRACT BUSINESS
PERSONAL FINANCE
FINDING THE RIGHT FINANCIAL ADVISOR FOR YOU
E
ver thought about seeking professional financial advice? If so, this article may be of great use to you. Read on to see how to choose a financial advisor. Of course the article shows you how to choose a financial planner, but what’s the use going through these steps if you don’t actually need one? Knowing when to seek a planner is pivotal. For instance, a person who is living from paycheck to paycheck may not be the ideal candidate. While that person may have good intentions and want to start saving, it would be hard to get a financial advisor interested in working with them to begin with. At the end of the day, these people have jobs and their objective is to make money by providing a service to their clients. If their clients are making money then so too will they. A good time to consider financial planning assistance is when you are at a point when you
have stable and steady income and have the ability to save at least 20 percent of your annual income. Once you have decided that you are ready for an advisor, the next step is deciding what type you want. There are many types of advisors, but our best bet is finding a fiduciary. Fiduciaries are planners who have pledged to act in a client’s best interests at all times. Investment professionals who aren’t fiduciaries are often held to a lesser standard, the so-called sustainability standard. That means that anything they sell you merely has to be suitable for you, not necessarily ideal or in your best interest. This point is critical, and should be a deal breaker if a prospective planner is not a fiduciary. Knowing how the planner will approach his work is key, but so too is knowing the ins and outs of the services to be provided. Instead of questioning what your advisor will give you, ask what services they
will not give. Some people are just investment advisors and only provide you advice on your investments. Then, there are others who do comprehensive financial planning around retirement, insurance, estate planning and tax planning. This will help you decide what you want. Now that this has been decided, it is important to run a background check on your planner. If they have ever been convicted of a crime, or were put under investigation by a regulatory body or investmentindustry group (guilty or not), then you should not bank on them. If they meet your requirements, still ask for references from current clients whose goals and finances match yours. More than likely, your advisor will be operating from within a firm. You should question the firm’s credentials just as much as you question the actual individual. Look for stability because advisory firms
compete with one another to recruit successful brokers. Due to this, some advisors make a career of jumping from firm to firm. Avoid advisors who can't stay put,
Additional Info Advising does not mean dictating. Yes, they are the pros, but never jump the gun. Just because you are offered a product or plan by the adviser you choose, doesn't mean you should buy the first investment product that the adviser offers. Always feel comfortable in the knowledge dispensed by your advisor and be sure to talk it out always asking about alternatives. Be sure to check in. Regular meetings with your advisor are crucial to make sure that your plan still fits with your goals. Regular, for some people, may mean just once a year at tax time; for others, quarterly is more appropriate. Whatever the case, keep in touch. www.amgtt.com • NOVEMBER, 2014 • ABSTRACT BUSINESS 21
ABSTRACT BUSINESS
23.
A
DEVELOPING THE ENTREPRENEUR
ELIMINATING BAD WORK HABITS
bad habit is a bad habit and will hardly likely ever have a good consequence. Therefore, it is important to nip bad-habits in the bud (Especially those that relate to work/office productivity). Here are some common bad habits and how to eliminate them. Procrastinating As much as we would like to believe we are the ultimate go-getters, everyone procrastinates. Some just tend to do it way more than others. No matter your procrastination level, one thing is certain: It is a habit that is damaging to both you and your business. Being proactive is a must for any results-oriented individual and this is reflected in the company at large. Being proactive is especially important in group projects or assignments that impact others on your team or the greater population of your company. Procrastination also goes hand in hand with people who suffer from being slow responders. If a client, coworker or manager sends you an email, leaves a voicemail or any other form of communication, respond as quickly as you can. Your response time affects their productivity, so try to be respectful of their time by responding in a timely manner. A self-imposed 24-hour deadline is a great timeframe to work with. However, be sure to skim from time to time to ensure the situation is not more urgent. Answering Unscreened Calls You think our moral compass is off because we don’t answer every single call? Well here’s the rationale. A blocked number call will obviously interrupt your concentration
just like any other call would. However, depending on what the call is about, you could end up in a spot of bother. Depending on the client you may end up in a poor negotiating position where you are scrambling to formulate your thoughts when the caller is already well prepared. Bad Grammar Or should we say poor grammar? We know this is Trinidad and Tobago and colloquialism and dialect are a part of us. However, there is a time and place for everything. When you hear someone using poor grammar, slang, or profanity, it translates into believing that person to be uneducated. You definitely don’t want to project that image to your clients or even fellow staff members.
When speaking, always assume that your boss is in earshot. You never know, a coworker might be closing a deal and you can be heard speaking badly or cursing in the background. Too bad. Be wary of meetings If there is no agenda or defined topics of discussion you could end up wasting time and brainpower by attending. Meetings should be clearly defined. Any such meeting should not run over a half hour. Be sure to request an agenda in advance so you can be prepared and make the best use of your and everyone else’s time. Tardiness Constant late coming and poor punctuality as a whole reflect badly on the type of worker
you are. It doesn’t matter if you complete more work than the rest of the team in less time. This is especially bad at meetings. That is a direct show of complacency and carelessness. So be prompt or even a bit early to show that you are time conscious and that you do care about your job and other people’s time, as well. Poor Preparation Do you spend your first hour at work wondering what you should work on today? That hour is usually when the office is teeming and busy with important early morning tasks to complete. Your lack of planning in advance could cost you big efficiency points. The best bet is to plan your next day in the final few minutes before you leave work.
www.amgtt.com • NOVEMBER, 2014 • ABSTRACT BUSINESS 23
ABSTRACT BUSINESS GUIDE
DEVELOPING THE ENTREPRENEUR
Oops… You’re Marketing Wrong
M
arketing is just as important as sales in the business world. In fact, they are directly responsible for one another. However, many brands and products suffer from poor marketing. You don’t have to be one such company. Beware of these marketing mistakes. Ignoring Social Networks Most people who are not in marketing will think that social media is just a waste of time. They think it’s a neverending cocktail party where work never gets done. That’s unfortunate, because building up a profile on the popular social media sites like Facebook, Twitter and Google+ can lead to a good source of traffic, new opportunities and ultimately customers. The best thing about it is it’s free and you can’t beat that in business. You can build up your profiles quickly by sharing good content you create and find online. It may take about six to twelve months before your profiles become popular, so be patient. With that said, care must be taken to use social media correctly. Don’t just be on a social media site for being there’s sake. Make sure it is relevant and your customers are on it. You're likely wasting a great deal of time updating your status on sites that simply don't appeal to your audience. Find 1-3 sites your customers do spend time on, and focus your efforts there. Failing To Network The world of business opens you up to all sorts of new events and
opportunities. It’s up to you to maximize them. There may be a big conference or Trade Fair in town. Even if you aren’t speaking at the conference it doesn’t mean you shouldn’t attend it. These events are going on all the time throughout the year, and they are excellent opportunities to meet new people, build relationships and close business. Not everyone you meet will lead to business, but for every person you meet you suddenly know everyone they know. In other words, they might not be able to help you, but somebody they know could. You just need to ask them, but you need the relationship first. Whatever you do, realize that it’s important to get your name out there. Neglecting The Importance Of Actually Marketing So, your business is good and has even showed signs of significant growth. Does that mean you should not think about what you'll do when customers stop coming in? It is easy to think you don’t need to market your business when you are raking in the cream. What you need to realize is Marketing isn't an activity you perform for right now; it's one you do for the future. So while business is booming now, if you market now, you'll keep it booming long into the future. Continue your marketing efforts so your brand stays in the spotlight permanently. Lack of Research and Testing Market research and testing should be done to determine the performance of every marketing effort. This takes the guesswork
24 ABSTRACT BUSINESS • NOVEMBER, 2014 • www.amgtt.com
out of what your potential customer or client wants. Always make sure you have done your due diligence when it comes to testing different offers, prices, and packages. Get the input of your customers. False Marketing Imagine a marketing team that has created eye-catching materials, compelling positioning and an aggressive campaign for the launch of a new company product or service. The campaign is an uber success. How-
ever operations cannot handle the demands. They are either under-staffed, or worse—they do not have the skill sets or ability to deliver on the new program. Or maybe, the product itself is not available in time, or has production problems. This not only upsets your customers, it demoralizes your sales and marketing team. They stop selling and the pipeline dries up. That is a definite no-no. Always try to deliver- both in terms of service and in marketing that service.
ABSTRACT BUSINESS GUIDE
GLOBAL FINANCE & WORLD REVIEWS
Shell Appoints New Chairman And Announces Better-Than-Expected Quarterly Profits
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oyal Dutch Shell has appointed US businessman Charles "Chad" Holliday, the former chairman of Bank of America, as its next chairman. Mr. Holliday is already a non-executive on the board of Shell and will take over from Jorma Ollila, who has served nine years in the role, at the oil major's next annual general meeting in 2015. Shell announced the reshuffle at the same time as its third quarter profits, which beat analyst forecasts despite a recent and dramatic slump in the price of oil. Adjusted net profit for the three months to the end of September was $5.8bn, a 31% increase on the
same period last year but lower than the second quarter of this year. Analysts had estimated it would be compared to estimates of $5.5bn. Ben van Beurden, Shell's chief executive, said: "The recent decline in oil prices is part of the volatility in our industry. It underlines the importance of our drive to get a tighter grip on performance management, keep a tight hold on costs and spending, and improve the balance between growth and returns." Shell increased its third quarter dividend by 4% from the same period last year to $0.47 per ordinary share. Holliday was the chief executive of DuPont between
1998 and 2008 having first joined the chemical and lifesciences company in 1970 as an engineer. Mr. Holliday was the chairman of Bank of America from 2010 until earlier this month when the bank's board voted to expand the responsibilities of
chief executive Brian Moynihan and make him chairman as well. Mr. Holliday remains a non-executive director. The US bank only split the two roles in 2009 under pressure from shareholders. At the time Ken Lewis was doing both jobs.
US economy chugging along at 3.5% growth
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ross domestic product, the broadest measure of economic activity, increased 3.5% between July and September over the same period last year, according to the U.S. Commerce Department. It exceeded analysts' expectations and offered more proof of an economy gaining momentum. The GDP news comes on the heels of the Federal Reserve's announcement to end its bondbuying stimulus program now that the economy is improving. Economists viewed the Fed's decision as a mostly positive sign that growth is picking up, even in the job market. Analysts projected GDP growth to hit 3% this quarter, according to data from FactSet. 26 ABSTRACT BUSINESS • NOVEMBER, 2014 • www.amgtt.com
Consumer spending is the largest factor for U.S. economic growth, and it rose 1.8% in this quarter, a slight drop from the same time a year ago, but better than the bleak first quarter this year. 2014 had a dicey start. Economic growth dropped 2.1% the first quarter because the extremely cold winter kept many businesses and schools closed for days and people stayed inside their homes. The weather also lowered exports to other countries. The second quarter rebounded well, posting 4.6% growth from the same time a year ago. The IMF forecasts that the U.S. will have 2.2% GDP growth for the year. So far, the nation appears to be on track for that.
It's a lot higher than Europe and other parts of the world that have been hit by geopolitics and slowing growth such as Russia. The big concern for quarter four is holiday spending. Americans are clearly buying more, but it's still not at a level investors and economists want to see to feel confident that the worst is behind. Europe's slowdown could also be a drag for the U.S., although so far the impact has been modest. "I think Europe by itself poses no real threat to the U.S. recovery or expansion," said Dr. Robert Shapiro, former Under Secretary of Commerce for Economic Affairs. He is more concerned that a sharp rise in oil prices could hurt the recovery.
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ABSTRACT BUSINESS GUIDE
STOCK WATCH
October Stock Summary Courtesy The Trinidad and Tobago Stock Exchange
Written Report for Wednesday, 29 Oct, 2014
O
verall Market activity resulted from trading in 13 securities of which 2 advanced, 1 declined and 10 traded firm. Trading activity on the First Tier Market registered a volume of 493,374 shares crossing the floor of the Exchange valued at $1,085,319.49. NATIONAL COMMERCIAL BANK JAMAICA LIMITED was the volume leader with 450,000 shares changing hands for a value of $450,000.00, followed
by SCOTIA INVESTMENTS JAMAICA LIMITED with a volume of 20,646 shares being traded for $28,904.40. ANGOSTURA HOLDINGS LIMITED contributed 8,137 shares with a value of $101,712.50, while ONE CARIBBEAN MEDIA LIMITED added 4,235 shares valued at $106,383.20. THE WEST INDIAN TOBACCO COMPANY LIMITED enjoyed the day's largest gain, increasing $0.05 to end the day at $118.61. Conversely, ONE CARIBBEAN MEDIA LIM-
ITED suffered the day's sole decline, falling $0.13 to end the
Stocks Advancing: Security
Volume
Closing Quote ($)
Change ($)
THE WEST INDIAN TOBACCO COMPANY LIMITED
300
118.61
0.05
UNILEVER CARIBBEAN LIMITED
133
64.15
0.04
Volume
Closing Quote ($)
Change ($)
4,235
25.12
-0.13
Security
Volume
Closing Quote ($)
NATIONAL COMMERCIAL BANK JAMAICA LIMITED
450,000
1.00
20,646
1.40
ANGOSTURA HOLDINGS LIMITED
8,137
12.50
GUARDIAN HOLDINGS LIMITED
3,000
13.50
CLICO INVESTMENT FUND
2,970
22.10
MASSY HOLDINGS LTD.
2,134
68.55
FIRST CITIZENS BANK LIMITED
1,940
36.76
SCOTIABANK TRINIDAD & TOBAGO LIMITED
1,547
58.00
NATIONAL FLOUR MILLS LIMITED
1,000
1.10
NATIONAL ENTERPRISES LIMITED
302
17.50
SAGICOR FINANCIAL CORPORATION
200
6.21
Stocks Declining: Security ONE CARIBBEAN MEDIA LIMITED Stocks Trading firm:
SCOTIA INVESTMENTS JAMAICA LIMITED
28 ABSTRACT BUSINESS • NOVEMBER, 2014 • www.amgtt.com
day at $25.12. CLICO INVESTMENT FUND was the only active security on the Mutual Fund Market, posting a volume of 2,970 shares valued at $65,637.00. CLICO INVESTMENT FUND remained at $22.10. BOURSE BRAZIL LATIN FUND remained at $9.50. PRAETORIAN PROPERTY MUTUAL FUND remained at $3.40. The Second Tier Market did not witness any activity. MORA VEN HOLDINGS LIMITED remained at $14.97.
In Wednesday's trading session the following reflect the movement of the TTSE Indices: * The Composite Index declined by 0.04 points (0.00%) to close at 1,146.52. * The All T&T Index declined by 0.07 points (0.00%) to close at 1,962.08. * The Cross Listed Index remained at 43.38. * The Composite Index comprises all Ordinary companies. * The All TTSE Index comprises Trinidadian companies only. * The Cross Listed Index comprises companies originating outside of Trinidad & Tobago.
Abstract B.G Is Published By Abstract Media Group, Premium Commercial Complex, San Juan, Trinidad, W.I. • Tel: (868) 638 1156/9 • Fax: (868) 638 1160. Printed By The Office Authority - Printing Division And Distributed By AMG