Benjamin Franklin is supposed to have once said, “an investment in knowledge always pays the best interest.” We agree and that’s why we like to share what we’re learning so our clients and partners can better navigate potentially troublesome waters.
Here’s an example of what I mean.
We were having one of our regular think-tank sessions the other day and one of the team asked, “is investment a science or an art?”
That’s an interesting question.
Turns out, it should actually be a bit of both.
It’s science, because you need data, research, strategy and models.
And its an art, because of the conceptual aspects of insight, intuition and creativity.
Finding a balance and joining the dots
Savvy investors know this and find balance between the science and the art. In many senses they’re able to perceive things most folk would miss and then join apparently unrelated dots together. But that requires the knowledge to think that way and that’s where learning comes in. Thanks Ben.
On the surface being in lockdown doesn’t sound too attractive. Most would agree it’s not. But lockdown doesn’t mean the world has stopped spinning. Things may have slowed down and changed some but business is still happening and investments are still being made (and lost.) Some would even argue this current situation is an opportunity like never before.
Positive mindsets matter
At Seven Stones Indonesia we believe in being creative. We believe in the power of a positive mindset. We believe in helping our clients, partners and communities create a better world and to focus on what matters most to them. We deliver peace-of-mind solutions and help businesses grow, which is why we encourage our partners to use these extraordinary times to determine what can be done more efficiently to best prepare for the future.
One way we’re doing this is to look at facts and use our insights and intuition.
It’s a fact that Bali’s primary investment opportunities have been in the tourism industry.
It’s a fact that Bali is perceived as one of the best places in the world to visit; the culture is unique, the people super friendly, the weather fabulous, the F&B scene is taking off, infrastructure is improving and the cost of living is cheaper than most places, including Jakarta.
It’s also a fact that recent changes to the rules and regulations surrounding Foreign Direct Investment (FDI) are having a positive impact on Indonesia’s ease of doing business index and one of these changes applies to visas, which have improved dramatically in recent months. That’s why it pays to know where you stand and what options are now open.
There’s no time like the present
Our intuition is leading us to encourage our clients to use this time to clarify their brands and consolidate their investments, to streamline and restructure and look at smarter ways to organize their businesses.
But how do you do that?
Most people are familiar with the idea that thinking outside the box relates to being creative, but a couple of years ago I saw a video that changed my thinking, prompting me to start working on a self-help business book based around the idea of thinking inside the box.
Here’s the story …
Thinking inside the box
A Creative Director of an Ad Agency is meeting with his team. They’re exploring ideas for a new restaurant. The team are throwing out restaurant concepts but they’re all pretty much the same old thing: Greek, BBQ, French Fusion, Indonesian Rijstaffel, Italian home cooking. The Creative Director is nodding (and yawning) but nothing his team has suggested has piqued his interest. Not yet. Not until someone at the back of the room shouts out “how about a restaurant that doesn’t serve food?”
Everyone looks at the guy at the back of the room and the Creative Director raises his hand. “Interesting! ” he says. “Very interesting!! So, team, how are we gonna do that? How are we gonna create a restaurant that doesn’t serve food?”
That’s when the ideas began to flow.
“People bring their own food and it’s like a buffet.”
“We only serve wine and beer.”
“Why not use it as a film set, like they do in Hollywood.”
“We could order from nearby places.”
“We don’t serve food. We serve experiences.”
The Creative Director nodded and smiled. He liked what he was hearing.
“The ‘box’, he said “is your environment, your situation. It is what it is and your limited by it. But it’s a positive thing because it forces you to be creative within it.”
And that’s the point.
We’re living in a time that’s very different to what we’re used to. But that doesn’t mean we just stop. We just have to find creative and positive ways to use the situation to our advantage.
Energising hospitality in Bali
So, here’s how we do that.
If you own a villa resort or hotel in Bali you’re probably suffering from a lack of guests and quite possibly seeing your investment struggling to survive let alone turn a profit. We’ve seen many operations here close permanently and nearly all of them downsize staff. The impact this has had on businesses and the local community has been punishing.
Another side to this box is people’s ability to travel.
Rapid tests, quarantine and expensive flights are clearly having a negative impact on the numbers. And even if you can travel you can’t just arrive and get your 30-day Visa on Arrival anymore. Those days have gone and are unlikely to ever return.
But here’s where we see a silver lining.
The situation is what it is, right? We can’t change that just because we want to. So we’re seeing a positive way to legally combine issuing visas, with long-term villa/ hotel stays.
We think this would not only energise Bali’s tourism industry but also offer a viable alternative to people suffering through awfully Draconian lockdown headaches across the world.
Sponsoring visas makes business sense
We start by asking our clients if their villa resort or boutique hotel is owned by a PT PMA (a foreign owned company) or a PT PMDN (a locally owned company.)
You’d be surprised at how many are not but still think it’s OK to operate. For those that aren’t we suggest they create one.
Why?
Because if your villa resort or hotel is owned by a PT PMA or PT PMDN, you’re now able legally sponsor your guests for a business visa, which is now possible to process as the newly launched e-visa.
And if you’re the sponsor for a visa you can offer that service to your guests. Eureka!
We’re noticing those foreign visitors who have decided to come to Bali during Covid are not here for short-term stays anymore. This makes sense. It’s simply not worth it to travel half way across the world to possibly spend 14-days in quarantine once you arrive. Long-term stays of 6-months or more makes much more sense.
So, if you’re the sponsor for your guests’ visas you’d be able to package these incredible rates with the costs associated with issuing a visa and you’re best long-term stay rates right?
Win-Win-Wins all round!
We see that as finding the balance between the science and art of investing and we believe it’s a win-win-win.
Your villa resort or hotel now has guests. And that means you can re-hire staff. And that means they have money to put food on the table. And your guests also have the opportunity to enjoy a possible extended period of time in one of the world’s most loved tourist destinations. And that has benefits for you, your business and your community.
If your business needs some help and positive advice on how to use lockdowns in ways that combine the science and art of investment, let us know how we can help.
Send us an email at: hello@sevenstonesindonesia.com
This is an updated version of an article that was first published in Indonesia Expat.
