Monday, March 28, 2011

The "Sticky Business" Factor

"All achievements, all earned riches, have their beginning in an idea."
Napoleon Hill
Have you ever been involved in a "sticky" business? "Sticky" businesses trap you with endless tentacles, paperwork, overhead costs, and lots of government red tape. They are potential lawsuit magnets.
I avoid them like the plague.
Instead, I look for "non-sticky" businesses that are based on a hot rising trend. And the best one I've found lately is based on a hot rising trend called China.
The business focuses on Chinese products, commerce, and worldwide demand. I'll tell you about it in a minute.
But first, I'd like to tell you about three new developments in China right now - developments that leverage this business opportunity in a big way.
For openers, according to the Financial Times, China has opened the floodgate of cash reserves to get their "export machine" cranked up again. Apparently some Chinese (in powerful places) believe the financial crisis of the last two years is receding.
Money is now flowing to entrepreneurs and businesses like it did pre-2007.
That's a good thing for the "non-stick" business opportunity I found.
Another development has to do with China's currency.
It's a no-brainer that the Chinese want to control the value of their currency (the Yuan) against all other currencies. And import and export entrepreneurs have been wondering if they'll suffer a backlash over China's currency policy.
But China's currency has a couple of things going for it. For one thing, China's economy is relatively stable compared to the US and other countries. Plus, China has low government debt.
I'm not an economist... but I know that a sound economy and limited government debt typically increases the relative value of a currency.
In real world currency trading, China won't be able to "control" much of anything when they do business with other countries. But overall, the Chinese currency should play a major role in international commerce in a good way.
China does not have the resources to be self-sufficient. The country needs to make and export products to the world, as well as import and consume them. In other words, they need trading partners to survive.
That's another good thing for the "non-stick" business I found.

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Thanx :)