Cash Flow Machine #1 : Doing The Pop Corn Business

January 1, 2012 · 5 comments

 “Popcorn!, Popcorn! Any one wants to buy popcorn?”

Does this sound familiar? Eveyone knows what is popcorn. So why talk about popcorn here and how popcorn is related to cashflow? Keep an open mind, have some patience and lets read on.

Popcorn consumers love popcorns and buy them. Popcorn business owners package the popcorns and sell them for monetary gains. That’s simple and everyone knows that. However some popcorn business owners earn more money and have a far greater reach of audience than the others. That is the power of good marketing and product packaging.

In this article, I am not going to talk about the types of marketing or how to go about doing marketing. I am going to talk about how to make money and have a good cash flow from “popcorn”.

Pop Money from the Corn
It is not about how we packaged the Corn and make money. It is about how we Pop Money from the Corn!!

 I have added in the Corn Supplier. The Corn Supplier provides the raw material for the business owners. And where are you positioned and how are you going to make money from this new equation?

A more complete picture.

We do not compete with the masses in chalking up huge expenses in marketing, slashing at one another in order to attract more customers to buy their products. We do not want to participate in this ‘tough’ competition.

It is no longer about how we package or market the Corn in the hope to make some money. It is about how we Pop Money from the Corn directly from the source!! We go straight into the internal operations and work with the source. That is how money should be made.

Looking at the diagram, Corn suppliers provide corns to many corn related businesses and industries. And you as the one in between them, you determine your own price of the corn. That’s how you are involved.  You will be generating cash flow from here.

 

“Ching Ching!” Here Comes The Cash Flow
Lets see a summary of how you can generate the cash flow from the following example.

Corn is now priced at $6.00 (price of Corn is based on demand and supply).

Step 1
The supplier is selling the corn to major businesses and customers at $6.00.

Step 2
I know that the price of Corn will have a very slim chance to go below $5.00 within the next 3 months.

Step 3
I Informed the supplier that I will buy the Corn at $5.00 if the price drops below $5.00 (eg. due to low demand).

Step 4
An agreement of $5.00 is created and I will sell this agreement to the supplier and the supplier will pay me money for this agreement. Note that this agreement is only valid for a period of time (eg. 3 months).

Step 5
If within these 3 months, the price of Corn stays above $5.00, the agreement will expire (no longer valid) and I will just keep the money that was given by the supplier previously.

Step 6
After that expiration, I will extend a new agreement with the supplier again and get another set of money from the supplier. Every agreement will generate money for me and provide me with consistent cashflow. That is how the cash flow comes about. Repeat step one again.

If people are familiar with insurance terms, this can be taken as I, providing an Insurance agreement (related to Corn Price) to the Corn Supplier. The supplier pays me an insurance premium. At end of insurance period, the insurance agreement expire and I keep the money. That premium is my Cash Flow.

After expiration, I sell another new insurance agreement to the supplier again and receive yet another round of premium.

What you actual need to start this “PopCorn business”
You will need an Internet Connection and a Commodities Account with a Commodities Exchange.

I did not provide the technical exacts in this article because it will need more than one article to demonstrate the technical workings.

I am currently in the process of consolidating these technical workings in an eBook. In this eBook, I will show you the exact STEP-BY-STEP execution of how you do this business. It will include lots of graphics and detailed execution instructions so that you can fully understand them and start generating your cash flow.

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Updated Note : 
The eBook is ready.
Enter your name and email address to the right side of the site and Get the eBook Now!
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From this article, you will come to learn that there are other ways to generate money and cashflow apart from the ones we currently know.

Keep an open mind, Stay Focus & Keep Learning

And Of Course
Watch Out for the “PopCorn Business” !

 Cheers!!

{ 4 comments… read them below or add one }

1 ZQ January 10, 2012

Nice! Totally intriguing…… :D

Reply

2 Calvin February 14, 2012

Hi Dave,

Saw your comment on my post. Looks like your popcorn business is basically selling a naked put. You would have to be bullish/neutral on the commodity for this strategy to work.

Rgds,
Calvin
http://www.investinpassiveincome.com

Reply

3 Dave February 14, 2012

Hi Calvin,

Thank you for your comments.

The popcorn business involves contracts that may be a put or call. It also involves seasons.
The type of contracts will be determined by the corn seasons.
As the corn business bring good contract fees, it is a favorite among many corn owners.

Cheers!
Dave

Reply

4 Arvin April 12, 2012

Very good blog article.Much thanks again. Much obliged.

Reply

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