Argentina's inflation fustration. In need of greener pastures.

[Matt Sun]

Hi, I'm making this post to take things off my chest but I would also love some perspective on what would you guys do.

I'm living in Argentina, wich is kind of the worst place ever for being an entrepreneur. To put things in perspective, year 2019, I was selling my main product for 40$ (1800 pesos) and doing good. Was reselling and about to start my own production so margins would increase. Profits were nice and I reinvested most. Then some crooked politician wins the elections, and the peso tanks 30% of it's value over night, and in the coming years it just keeps getting worse and worse. Today, the very same product I'm selling for $17.5$ (3500 pesos so almost double in the local currency). Inflation it's a crazy bitch, at 40$ in 2019 I had no problem selling, people where happy etc. Now at this price I get complains for the price going "up". I have lost customers. Salaries didn't go up as much as the dollar at all, they are really way down in real terms. So my customers are poorer now... And so have been I. And also marketing is quite difficult since I can't do google ads and Instagram shadow bans me (my product is cbd oil). And the 17.5$ I make today aren't even worth as much as it was worth in 2019 since we all know the dollar took quite some inflation. And to make this like some big f joke, people still vote and support this crooks that cause this on the country, even some from my own family.

So I'm tired of this crap and want an alternative. I don't really know what to do. I thought on an internet business, maybe youtube or something. I've learnt a lot of natural health this last few years. It's just that I would be relying on youtube not to nuke me and besides there is a million people doing that (how are we such in a bad shape as humans with so many health gurus ? lol).
Maybe a crypto educational channel. I'm no expert but I can translate from channels in English that are, and adapt content for Spanish speakers. Also I'm good at separating objective truth from bs and opinions (hence why I'm on this forum and follow MJ).

Anyway what would you guys do ? I have some savings but not very much, like 10K. And expect to have 10K worth of product to sell and maybe produce some 30K worth the next year.

I don't move yet because my family lives here and the good thing is that expenses are crazy low (my rent for a one bedroom apartment is just $100). But def planning to. Probably to Brazil so I won't be so far from my family.

Anyway I don't want this to be too long, I could go on talking on how miserably things are in Argentina but it's pointless.

The good thing is that I got the cbd business mostly automated and I have time to start something else.

Thank you if you read so far.

 

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[Antifragile]

I am sorry to hear that @Matt Sun - it is a classic yet tragic story over currency depreciation and inflation.

Inflation is a phrase on the tip of everyone's tongues at the moment. Financial "experts" all have a different opinion on how to deal with inflation - some recommend gold, others shares, bonds and property.

There is a way to create a business that's not affected by inflation - and that's to make sure it's based on goods or services that aren't linked to the currency.

Here are some ways:

* create a business that makes and sells goods locally - even if your currency depreciates rapidly, the local people should still be able to afford them

* develop an IT-based product or service that can be sold and delivered electronically ("coding/programming" - maybe in the new blockchain tech world) - this is a good option because it's not linked to location

* create a niche business that isn't well known to the public yet - this means that there's less chance of increased competition and higher prices. Is your current CBD product niche or a commodity locally?

* focus on exporting your product or service to countries with more stable currencies than your own.

As to your ideas on YouTube. I cannot comment. I believe it is harder than most people think.

 

[BD64]

To add on to @Antifragile

*Businesses that serve NEEDS instead of wants. Something like a plumber.

*Rental systems that own valuable, in-demand asset classes. Cash flow from rentals protects can protect you from asset devaluation & if it's the right asset class then it should bounce back based on supply & demand principles. Real estate comes to mind - residential, storage, landfills, etc.

 

[Matt Sun]

Thanks for both your answers. I've been thinking of making a more niche "blue ocean" product with the CBD (since I grow it so I can do any product I want). The problem is that exporting is not possible and I would still be stuck in the argentinian market/economy. I know this product I've been developing can do very well since there is really no competition right now and there is millions that need it and more will need it in time. I'm just so frustrated with this economy that I don't want to serve this market anymore. Like having the best product in Venezuela probably won't make you rich anyway.

* develop an IT-based product or service that can be sold and delivered electronically ("coding/programming" - maybe in the new blockchain tech world) - this is a good option because it's not linked to location

This is quite interesting, you mind elaborating a little bit more on that ?

I thought on learning solidity (I don't know any programming whatsoever but I do believe I can learn and have no problem with the effort).

My ideal would be to sell digital goods to customers that aren't in Argentina.

 

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[Antifragile]

I am a real estate guy, not a tech expert. I dabble in Crypto as I think the future is here and it'll come as a "surprise" to many. Blockchain is revolutionary for even my industry. I am convinced the ownership of properties in the future will be handled through this new tech.

That said, I can't elaborate more than that. What I will say is to re-read MJs Unscripted book. It's a terrific guide on how to find what to do, or amend something that's not working. What I mean is that instead of looking for the "idea", look for problems, inconveniences, things that annoy people. For example, @MTF had success with writing books, but now Amazon made it hard for authors to make any money. Would a bookstore on blockchain make sense? Creating a platform for those who are pissed off at Amazon to sell their books as NFTs and allow for others to trade early editions? Taking the old ideas that worked but 10x them in terms of benefit.

 

[MTF]

I don't move yet because my family lives here and the good thing is that expenses are crazy low (my rent for a one bedroom apartment is just $100). But def planning to. Probably to Brazil so I won't be so far from my family.

Why not Uruguay, a more stable option with solid reputation, the same language, I imagine good business atmosphere, and in general the Switzerland of South America?

Also, just wanted to say I'm sorry you are in this situation. It really sucks and the worst thing is that I see that more and more countries may follow the same path. That's why global diversification is so important.

For example, @MTF had success with writing books, but now Amazon made it hard for authors to make any money. Would a bookstore on blockchain make sense? Creating a platform for those who are pissed off at Amazon to sell their books as NFTs and allow for others to trade early editions? Taking the old ideas that worked but 10x them in terms of benefit.

I may actually test it once I figure this out better.

 

[Walter Hay]

I don't move yet because my family lives here and the good thing is that expenses are crazy low (my rent for a one bedroom apartment is just $100). But def planning to. Probably to Brazil so I won't be so far from my family.

I would not see that as an improvement, but out of the frying pan into the fire. The Brazilian beaurocracy is notorious for corruption.

I agree with @MTF that Uruguay is a better option.

Walter

 

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[Matt Sun]

Thanks again for your answers. Uruguay an Brazil have both their pros and cons. A friend of mine is moving to Uruguay soon so I expect her report on the situation there. I even considered moving to Switzerland like to have a real solid foundation. I could become a Spanish national and go work there. Though I think I yet need more savings to do that.

The best solution I think would be to have a business independent of a certain country's economy. I've read TMF and Unscripted and now these days I'm gonna devour TGRRS to get fresh ideas. I won't let this defeat me but boy it gets tiresome. Just sharing the pain with you guys kind of helps to ease it, thanks again !

Ps: Now i'm thinking I could launch the product I'm working on in Uruguay. I will consider this.