The
cradle of opportunity
By
Nilooka Dissanayake
Whether you are dreaming of your own business or already
in business, opportunity is something you cannot afford to ignore.
And, really, it is up to you to decide what to do with the opportunities
that present themselves as an entrepreneur and businessperson. We
all know the saying about taking a horse to water. This is what
Rosamond Lehman, the English novelist says about opportunity: "One
can present people with opportunities. One cannot make them equal
to them".
So, I shall
not attempt the impossible. All I shall do in this article is show
you the need to keep your eyes and ears open to what comes your
way. This article is really about the business environment. That
is the cradle of all opportunities. And it is our attitudes that
make us winners or losers. And I will tell you why.
I take part
in lots of trade exhibitions and go around the country for seminars
and lectures. So, I meet many people who are either in business
or are considering starting their own business. Quite a number keep
on complaining about the business environment. They complain about
government policy, globalisation, the September 11 terrorist attack,
multinational corporations and so on. "How can we start or
do well in business?" they ask. "And the taxes are too
high and so is the bank interest. Bankers are not willing to lend
money even at those rates."
What do you
think I say? Do you really believe that all those reasons are going
to put off real entrepreneurs? If you look back at the entrepreneurs
that really made good, you will realize that most of them did not
get favourable treatment from banks or governments. They faced the
forces of the business environment head on. Often, you will see
that the entrepreneurs counted only on themselves for their success.
And they made and sold a good product or delivered a good service.
Think of the
more mature Sri Lanka businesses like DSI, Maliban or Harischandra.
They made products that were in demand. Then think of the young
businesses like Russell's Tea who service a growing number of companies
behind the scenes. Think of Pizza Oven catering to growing consumer
tastes for pizzas. They chose a segment and stuck to it tenaciously.
Do you think
they just sat around grumbling about the business environment? Anything
can open up business opportunities for you and your business. If
you don't believe me, ask Lionel Perera of New Bernard's Animal
Feeds, the largest local manufacturer in the animal feed industry.
One morning, while he was getting ready to go to work, he had heard
a news item on radio about a strike among port workers in India.
This, he says meant shortages of grain in the local market which
would result in significant price increases. He immediately borrowed
some money and purchased grain well in excess of his needs. As a
result, while he kept his costs of production under control, he
also made profits by selling out the excess grain at a higher price.
And all because he listened to the radio and kept his wits about
him.
As for that
saying, opportunity does not knock twice, just forget it. It is
eternally knocking at your door in one guise or another. Simply
learn to tune your ear to the correct decibels so you may hear it.
But, of course,
I am not disputing the fact that the business environment can wreak
havoc with your business. It can. But, since you know it can, why
not take some preventive measures? To take measures to make your
business shock proof, you need to understand what is going to affect
you. Where do you start?
There are so
many elements in the business environment. Starting from your family
members, your employees, your neighbours, bankers, suppliers, buyers,
competitors, chambers, the government and policy makers, politicians
and terrorists, all contribute in some way to change the business
environment you work in. That is complicated enough. But, the weather
in your country or elsewhere, economic, social, cultural and technological
factors all affect the environment. Things happening all over the
world can affect the local business environment in this age of globalisation.
These forces
can affect you positively and create opportunities or be adverse
and create threats. Think about this until next week when we will
consider how a small business or an entrepreneur can come to grips
with the situation. Until then,
what is that you hear knocking
at the door? Check it out.
We welcome
your questions and comments. You can reach us on ft@sundaytimes.wnl.lk
or call on 074-304112.
The writer
is the Managing Editor of Athwela Vyaparika Sangarawa (Athwela Business
Journal), the only Sinhala management monthly targeting the small
and medium sized business operators and its English version, Small
Business International magazine.
SMLL
declares second 5% dividend
Seylan
Merchant Leasing Limited (SMLL), a subsidiary of Seylan Merchant
Bank (SMB), has announced the payment of a second and final dividend
of five percent to all Class B shareholders, based on a good financial
performance for the year 2002.
This second
dividend brings the total dividends paid in the year to 10 percent.
The dividend will be paid to some 130 shareholders who participated
in a public unquoted issue of Class B shares. All Class A shares
are held by Seylan Merchant Bank, a company statement said.
SMLL recorded
a healthy growth in its financial results for the year ended 31st
December 2002, with a post-tax profit of Rs. 13 million, compared
to Rs. 3 million in the corresponding period in 2001.
EU
chamber meeting on recent fiscal reforms
A breakfast
meeting titled "Recent Fiscal Reforms " will be held on
May 13 in Colombo.
It is targeted
at CEOs and finance directors of companies and organised by the
European Chamber of Commerce of Sri Lanka.
The presentation,
which will highlight recent policy reforms, legislative reforms
and administrative reforms, will be made by N.R Gajendran, a tax
specialist and senior partner of Gajma and Co.
Qatar
Airways to fly eight times a week to Colombo
Qatar
Airways has begun flying eight times a week to Colombo from May
3, the airline said. The additional Qatar Airways' flight is scheduled
for Saturdays, arriving in Colombo at 7.35 am, departing Colombo
at 8.50 am, and arriving in Doha at 10.45 am.
Qatar Airways,
which says it is one of the fastest growing airlines in the world,
will use an Airbus A320 on the route, which offers 12 Business class
seats and 132 Economy class seats.
As part of
a new growth plan, Qatar Airways will extend its route network to
50 destinations by the end of 2003. It presently flies to 40 destinations.
It recently added Manchester to its growing network and will add
Rome in June.
Secrets
of the stars now on Celltel
Cellular
pioneer Celltel has brought the stars a little closer to its subscribers,
with the launch of an exciting new feature on its popular SMS facility
-- a comprehensive, customizable horoscope service.
Celltel users
now have the option of receiving their horoscopes automatically
on a daily or weekly basis, or as and when they wish, by sending
a simple SMS message to 909 on their handsets.
A unique feature
of SMS Horoscope from Celltel is that users may choose to check
what the Zodiac has in store for them in four areas, General, Professional,
Luck and Private. SMS Horoscope is the only SMS-based service to
offer such specific information, the company said in a statement.
CellSMS, Celltel's
hyperactive Short Messaging Service caters to the needs of a wide
spectrum of customers from the fun-loving young and young-at-heart
to the busy business executive, providing an extensive range of
information, payment facilities and games.
Agriculture
Ministry, CTC promote farming best practices
The Ceylon
Tobacco Company (CTC) has joined hands with the Ministry of Agriculture,
to promote farming best practices among local farmers.
The programmes
are aimed at increasing yields, enhancement of the rural economy
and the living standards of the farming community, CTC said in a
statement. The first such programme took place in Sigiriya in the
village of Pollaththawa with over 80 farmers, who mainly grow Bombay
onions, taking part.
The ministry
together with CTC plans to carry out at least three such programmes
during the year, in the Nuwara Eliya, Ampara and Anuradhapura districts.
A CTC spokesman said the company has been working closely with the
local authorities but this is the first training programme it is
conducting under the new partnership.
Commercial
Bank to raise Rs. 4 bn through debentures, shares
Commercial
Bank said last week it hopes to raise up to Rs. 4 billion in medium
term funds for business expansion. Initially the bank will issue
Rs. 2 billion in debentures and Rs. 500 million in preference shares
for a period of five years, with the option of increasing the quantum
in the event of an over subscription.
"These
instruments would promote medium-term funds, diversify funding mix,
and strengthen liquidity and Tier II capital of the bank,"
said Ranjith Samaranayake, Deputy General Manager (Finance and Planning).
He noted that the bulk of Commercial Bank's deposits are short-term
and hence such funds were needed, and also to qualify for capital
adequacy requirements.
The five-year
unsecured subordinated redeemable debentures will be priced at Rs.
1,000 with two interest rate options. The fixed interest rate would
be 10% per annum, or applicants may opt for a floating interest
rate. The floating interest rate would be equivalent to the three
month Treasury Bill after 10% Withholding Tax plus 2% per annum.
Interest rates for both debentures will be paid quarterly. Commercial
Bank has also obtained approval to issue an additional Rs. 1 billion
in debentures if the issue is oversubscribed.
The bank's
preference share issue will also run concurrently with the debenture
issue. Initial plans are to raise Rs. 500 million worth of cumulative
redeemable preference shares at par value of Rs. 10 per share. The
bank retains the option to increase the issue by a further Rs. 500
million if oversubscribed, while the shares would be paid a fixed
dividend of 11.25% as at December 31st each year. (AA)
|