CONTENTS
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Letters to the editor/credits section
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Your Money, out and around...
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Business Lounge: Will Scotia Thrive...?
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Saving Money with E10
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An Entrepreneur’s Life: Show me your Money
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Street Smart
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Letters to the Editor
Credits Publisher eZines Limited Managing Director Tyrone Wilson Your Money Reporters Andre Black Latoya Hutchinson
This magazine is a great idea. It is an important step toward improving the financial intelligence of our nation. The internet has given us access to the world’s financial markets and we need to be educated about them. There is no reason why a farmer in Manchester can’t buy shares in Toyota, a Japanese company. Or a fisherman in Old Harbour can’t trade foreign exchange during the London market session. Keep up the good work!
Columnist Cherryl Hanson Simpson Design and Layout Omar Phinn Subscription subscription@yourmoneyezine.com
Regards,
Editorial
Chad Gardner Kingston, Jamaica
editor@yourmoneyezine.com Your Money is a Product of eZines Limited, and is distributed weekly via e-mail. To subscribe FREE log on to www.yourmoneyezine.com today or email to subscription@yourmoneyezine.com Advertising advertising@yourmoneyezine.com Download our media kit at www.yourmoneyezine.com
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YOUR MONEY
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2 Your Money out and around...
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1:
From left, legendary Singer/ Producer Winston Riley of Techniques Record, Bunny Brown from the popular Chosen Few singing group, and Bagga Case lead singer from the group Home T raps during the album launch of Winsome Benjamin at The Jamaica Pegasus.
2:
Dwight Richards, Trumpet and Singer on the band Dwight Richards and Friends smiles with Cuban Tourists Ines Martinez [left] and Amarilis Revuelta at Winsome Benjamin’s album launch at The Jamaica Pegasus, in New Kingston on Wednesday, November 5, 2008.
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Winsome Benjamin, Singer [At center], embraced warmly by popular Radio Personality Fae Ellington [left] and her 7 year old son Donte` Quarrie after her lively performance at her album launch.
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At left: Deputy Chief of Mission, Embassy of The Argentine Republic Ramon Corvera, Rosa Pena, Senior member of Charity group, The Latin-American Women’s Club, niece of Rosa Pena Marylin Mendez, and wife of Ramon Corvera, Deidre Corvera engage in a conversation at The Jamaica Pegasus 13th Annual Wine, Spirit and Food Festival.
5: Devon Reid, Marketing Manager of Caribbean Producers Jamaica Limited and Sheryl Chung, Designer of Sher Creations having a warm conversation
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6: Chris Vovell, Director of The Jamaica Pegasus and Nancy McLean, Manager of The Jamaica Pegasus together addressed situations concerning the hotel.
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The Business Lounge
Will Scotia Continue to thrive Without Bill Clarke? by Latoya Hutchinson
Top businessman William “Bill” Clarke has officially retired from his post as President and CEO of Bank of Nova Scotia (BNS) Jamaica Limited. Clarke has been apart of the BNS family for 40 years, the last 13 of which he has spent as its CEO. Tremendous achievements and profits have been the markers of his tenure. Hence, his impending departure at the time became the topic of numerous debates. However, now that he is no longer at the head of the organization, many are wondering how BNS will survive without him. This is what some had to say:
“It’s hard to predict whether BNS will thrive without Mr. Clarke. He did a wonderful job, however, the next CEO can also be just as good a business man as he,” she says.
“I think it will take someone who was just as ingrained into the whole culture of the operations in Jamaica to help the bank now,” she says. “He (William Clarke) worked his way from the bottom to the top, he was exposed to all the issues at every level and so was fully equipped to handle them as the boss. I think that’s what made him so effective a CEO, perhaps a harsh one, but a good leader.” Former President and CEO of Scotia Bank Jamaica, Bill Clarke
“He’ll just have to build on the sturdy foundation which was set, which is mostly what Bill Clarke contributed. Surely BNS will continue to be a strong contender in the market,” she says
Alfred Williams, 64; Retired “The man has left a fabulous legacy. Remember it’s under his leadership that Scotia can now call itself one of Jamaica’s leading banks.” Williams claims to be one who watches and takes account of every happening in the business sector and he says that William Clarke will be a tough act to follow.
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Monica Francis, 25; Student According to Francis, who is a Business Administration student at the University of Technology, one factor that aided the past BNS Managing Director well was his entry into the organization at the grass root level.
Simone Williams 42, teacher
Williams has been a customer with the bank for over 10 years. She believes that once the new CEO is highly qualified and determined, there should not be much trouble ahead for the financial institution.
Citing the survival of Scotiabank during the financial meltdown of the ‘90s, as one of Clarke’s major achievements, Williams believes the financial company has lost a true stalwart and a genius. “They don’t make men like him anymore or at least I haven’t seen much in these last generations. Scotia might not out and out fail, but perhaps there will be a period marked with uncertainty as they try to adjust to new management,” he adds.
Francis advises that new CEO Bruce Bowen should take the time to become involve in the current culture or ‘way of doing things’ left by Clarke, “that’s the only way I see him continuing the successive streak the bank has enjoyed with Mr. Clarke.” Bruce Bowen has been with the Canadian banking group since 1990. He has worked in Jamaica before as senior general manager. For last year BNS recorded $7.6 billion in net profits. In the last 10 years, the bank has recorded combined net profits of more than $55 billion.
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Saving Money With E10 Jamaica’s new gasolene E10 is slated to provide numerous benefits not only for the common man, but also for the country itself. Chief among these benefits is the opportunity to save money. E10 is approximately $2.03 less than the cost of regular 87 fuel. At this price, it is no surprise that motorists have already started filling up on this uniquely blended fuel. Sandra Newman has been using the 10% ethanol gas mix since its introduction on 1st November and has no complaints.
include the generation of employment opportunities for hundreds of Jamaicans, a reduction of the outflow of foreign exchange used to pay for imported fuel and the creation of an additional revenue source for the country.
“ I love the idea of having a cheaper gas to use and I appreciate the quality as well,” she says. “I also find that I do not purchase as much gas as before, so that’s more money in my pocket.” Some local gas retailers have also expressed commendations on the new gas. Petcom Portmore, a dealer in E10, reports as much as a 80% increase in the sales of E10 87 when compared to the regular 87 fuel. Trevor Barnes, President of the Jamaica Gasolene Retailers Association (JGRA) describes the E10 venture as a viable one. “It’s a renewable energy at a more attractive price and we stand to benefit a lot,” he says.
Energy and Financial Security
Apart from the price savings at the pumps, Energy Minister Clive Mullings expects that the country will save on its national oil bill as well.
Can Jamaica become a major player in the ethanol production market?
“Due to the phased implementation of E10 87 on November 1, 2008, we are unable to estimate the savings especially since unleaded 87 and 90 continue to be sold at the pumps. However, the mandatory use of E10 87 and 90, is estimated to save the country approximately US$52 million by 2010,” he says.
Jamaica is one of the major players in the Caribbean. In fact, the Minister informed Your Money that for the year 2007 the country exported 27 million gallons of ethanol to the United States under the Caribbean Basin Initiative.
In light of the current financial crisis and the recent surge in oil prices worldwide, the energy department believes that the introduction of ethanol-based fuel will not only serve as a financial relief for consumers, but is also a major step towards breaking Jamaica’s dependency on imported fuel.
“We already have the capability and expertise to produce ethanol that meets world standards and can be used to make E-10,” he states.
“Now is the opportune time for Jamaica to develop its ethanol industry. Importantly, locally produced ethanol will help us avoid a reliance on a single source of supply and also help to prevent disruptions in the Jamaican gasolene market,” says Minister Mullings Other advantages of an improved local ethanol industry will 6
The Honourable Clive Mullings, Minister of Energy pumps E10 for a customer at the Petcom in Portmore (right), looking on is Russell Hadeed, Chairman of Petrojam (left)
YOUR MONEY - Your Life
However, the country’s ethanol industry is not yet ready to compete with others, such as Brazil. “We can however, benefit from existing supply arrangements and from the expertise of such companies as Brazil’s Infinity Bio-Energy, which is one of the leading producers of ethanol in that country,” Mullings adds. w w w. y o u r m o n e y e z i n e . c o m
An Entrepreneur’s Life Show Me The Money!
One of the biggest mistakes that an entrepreneur can make when starting a new business is the ineffective use of limited resources of time and money. Owners of micro enterprises have to be very careful how they spend every dollar of working capital and every minute of their working day, to ensure a positive return on their bottom-line. There are three elements that must work in harmony to produce business success. First, your product or service must be properly designed to meet the needs of your customers. You must also organize your operations to ensure a smooth delivery of your offering. The third element must be the sales and marketing of your product or service. The challenge for many new entrepreneurs is that they are so impassioned with their business dream that they spend a large amount of time and money perfecting their service or product and organizing their operations, and forget to concentrate on the marketing of their business.
Marketing = Money Peak Potentials CEO,T. Harv Eker explains that marketing = money and money = marketing. No matter how great your offering is and no matter how wonderful your service is, if you don’t market your product well, no one will know about it and therefore no one will buy it. Think about it - how many times have we accidentally come across a great product or service that really fits our needs and we complain to the owner, “How come I never heard about you before?” Eker confirms that for businesses to become profitable, the operators themselves must develop a marketing-focused approach. He notes that most enterprises are starved of revenue because the owners spend 65 per cent of their time and money taking care of the operations side, and only 10 per cent on marketing. Eker declares that to see the money rolling in, entrepreneurs need to spend that 65 per cent effort on presenting their product or service to potential customers in such a way that makes them want to buy.
Cherryl Hanson Simpson
that I have not put enough time and effort into actually convincing these potential clients that they desperately need my services.
Focus on the money As Eker declares, entrepreneurs must focus on money-making by accepting responsibility for their marketing efforts. Yes, you can hire people to carry out marketing activities, but you still need to know how to market your own business. First of all, no one knows your business or cares about it more than you do. Secondly, marketing is a learnable skill, so you don’t have to feel incapable of doing it. Focusing on the money also helps you to make proper decisions when you have to spend valuable resources. You will learn how to evaluate each request for time and money by looking at the probable return in sales and profit. Every action must produce monetary results – Show me the money! If you need a little inspiration to work on your marketing skills and increase your revenue inflows, check out Tom Cruise and Cuba Gooding Jr. in this classic ‘Show Me The Money’ clip from the 1996 movie Jerry Maguire http://www.youtube.com/watch?v=OaiSHcHM0PA © 2008 Cherryl Hanson Simpson Cherryl is a financial columnist, consultant and coach. See more of her work at www.financiallyfreenetwork.com and www.financiallysmartonline.com. Send questions and comments to info@financiallyfreenetwork.com. Please add this address to your email address book in order to ensure you receive a response.
Like many start-ups, I know that I have been guilty of ignoring money-making marketing methods to my peril. I have invested valuable time in designing my services, and spent precious initial capital in ensuring that I am adequately equipped to welcome to all these clients who need my services. In hind-sight, I realise 7
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Street Smart *Shopkeeper Paula [34]* Being smart doesn’t only apply to the office. If you want to survive in society you have to be street smart. In this weeks edition we interview Paula a shopkeeper who operates her own business, in the Fletcher’s land community. Question: What beverage do people buy from you the most? Paula: “Soda, a lot of people say that it quenches their thirst more.” Question: Is there any new goods on the market you are interested in selling and why? Paula: “Cranberry Water… because people are asking for it very often, like 10-15 times per day.” Question: How much phone credit does the average person buy per day? Paula: “Well, an average person would buy at least six phone cards per day.” Question: Why did you choose this spot to sell? Paula: “Well… this is a longtime spot, there are a lot of different people who were here previously. But, it was my baby father who first started here, now it is me.” Question: Working in the streets or in the office, which do you think is harder? Paula: “Street work of course… if it is not sweetie is something else, people always come buy, could never get comfortable.” Question: Do you think more people will buy the Lotto now that it is starting at 15 million dollars?
Paula makes change for a customer with her eyes well focus.
“Cranberry Water… because people are asking for it very often, like 10-15 times per day.”
Paula: “How you mean… them will now rush it like a bomb shell.” Question: If you won, what would you do with the money? Paula: “I would give some money to the homeless, then to the kids who are not going to school, and then to give the ‘old people’ them some. Invest the rest in my business, so it can expand.” 8
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