Dysfunctional Thoughts – Failed Business Relationship

Situation

From business perspective

1. The source is unreliable
2. 1. Prevent: double check every entry for validity of data and price, only post those with valid data and price to avoid wasting of time
3. 1. Mitigate: take down inaccurate listing, cancel the listing, notify the prospect

The process is risky

1. Prevent: take listings under principals (not taking directly),
2. Mitigate:

I’m confused in what to do in this new business, the business partner that we relied on has shaddy rumours surrounding him. I’m confused on whether I really should focus on this new industry, finding other partner, or leave the business. One side I don’t want to breach the agreement but the other side they’re not bringing in their part of the deal, while our spending cost kept running. Whether I should still believe and run this business or pivot to other partner or line of business.

Emotion

1. Confused: 90%
2. Disappointment: 70%

Automatic Thinking

1. If he can’t be trusted for one part, how can I trust him for the whole transaction?
2. 1. All or Nothing
3. My work here will be worthless
4. 1. All or nothing
5. I can’t grow with this kind of condition
6. 1. All or nothing

He’ll just disappoint us like the rest of the partners

1. Label

Rational Thinking

1. People are not black or white, people are complex, the made mistakes have different value and do mistakes. But trusting wholeheartedly is naive, but having rational give and take instead all or nothing are the most practical and adaptive in the current condition, while also maintaining personal principles.
2. This industry value and players are vast and high value, just one transaction can generate a significant amount of profit though there are a lot of risk in it, but the players are still in it for the money and network that they had build over the years.
3. To grow here would need me to adjust and find gap to provide value to all players, the value are high and the risk is mostly law related.
4. Put up a good spirit, demand for what is proper and treat with respect with boundaries.

Micro Service, Serverless, Event Based Architecture and API Gateway

Desktop application era was disrupted by the web application era and then mobile application and then the ‘modern’ architecture, well at least it is modern right now.

The term modern is loosely correlated with Micro Service architecture, serverless, event based architecture and API Gateway. What was it’s all about? Each of those pattern is designed to solve high traffic and high load condition, imagine serving farom 100 visitors/day to 1 million visitors/day, how can you have a turnkey solution for solving those kind of traffic and load?

In my experiences for developing monolithic application which work well until it doesn’t due to the increase of load or increase of the data managed, most of the problem is limitation of database, the simple query that runs well before take 15+ seconds, the database support transaction, reporting, validation and etc, which lead to database overload. Other might argue to use materialized view, temporary tables, memory based database, high spec server with 64 cores, 2TB of memory and RAID 10 SSD drive for overcoming the issue, yes it could work, but wouldn’t it be wonderful if we can just solve it by adding low spec server and it just automagically load balance every aspect of the application?

This is the main idea that the above patterns trying to achieve, though some of the pattern also require high spec server but mostly for the main engine and it can scale using lower spec, or it can provide performance as high specification solution with much lower specification.

Let’s start with a case: I have an application which had 3 millions data, and it serves as online public catalog which have many facet, backend reporting and also for transaction processing from 800+ office units. The main load was the online public catalog and the load of the database. How to optimize this?

Micro service: splitting the processes of the application into tiny micro services that can work independently. First due to the main load of the application is due to online public catalog, use search engine database to serve the load. Adding data replication or push from transactional database to search engine and then serve the public catalog along with other search functionalities from search engine. The application access the search engine using simple REST web service. If the load of the online catalog increase then just scale the search engine. This also work for reporting, instead of using the transactional database, create a dedicated datawarehouse database instead to serve all the reporting query through REST web service also.

Are those above really micro service pattern? Some might argue it isn’t, well I agree, they are just splitting the application features. This bring us to another case of a monolithic application that have a certain validation process that strain the database, we already used 32core CPU, 32GB memory, 1TB of RAID 10 SSD for the database but the performance was still not sub seconde. One might argue for creating temporary tables or optimize the tables, but this application is distributed application and changing database structure is a tedious with hundreds of offices to be upgraded wihtin shor span of time, these options are not well accepted, so how would you solve this?

First the problem within database query usually involve multiple joins of table and multiple criterias which sometimes are just cannot be solved by indexing further, and upgrading the database into cluster might not solve this issue of processing data using query, how about if we move out the processing from the database into scripting instead? How exactly? Application will just get from database the data required for processing with minimum join to the application memory and then process the data using application logic. Join and criteria are not that hard to process using array manipulation, but how about the memory and cpu consumption of moving the process from database to application?

The options are whether keep the process in database which take also cpu and memory and hopefull that increasing the server specification or upgrade the database using clustering will solve it or move to the application and then scale the application using more application server. Most of the people I met agree that scaling transactional database is harder than just scaling application server, like spawning additional apache web server running the same application.

By moving the process to application and isolating the function into a small application that can be accessed by REST service, it become micro service. Load getting higher or need more capacity for processing the validation? Just add more application server, if one server can process 100 transaction / second and we need 200 transaction / second then just add another server, done. We’ve successfully make the application easily scalable.

Serverless, adding another server and done, how exactly can we do that? Setting up the web server, copy the application, load balancing the requests between servers, that’s not so easy! How about if we already have like 5 servers using the same application and then we need to change something? How about 20 servers? It take forever … being overly melodramatic here. The answer is using VM or Container solution, we deploy our application in VM or Container, so we can easily add new instance of our application, but we add the hassle of creating new VM / Container image everytime we change our application. The application should be stateless, meaning it doesn’t use session information, all the information it need should be provided by web service so it can scale without any dependency to database, session variables or other components.

API Gateway, now serverless has made adding server easy but how about the load balancing part? Who manage the request distribution and which request goes to which servers and also new server are available to be used / registered? API Gateway to the rescue, you register all server in API Gateway and then mark that for /request_type will be load balanced to designated servers. Consider it as network router

Buy Asset, Borrow, Buy Cashflow, Pay, Repeat

Reference from twitter, it’s similar with BRRR – Buy Renovate Refinance Rent. I’m interested whether I can apply the concept with my current condition.

The main issue for me is the Buy Cashflow or Rent, for rent, let’s see

1. Purchase 1000, time 1 year, refinance 1200 with 10 to 15 monthly installment, rental is 60 per year, you got extra 200 when refinancing and 60 when rented, with total 1260 (26% upfront), but with cashflow of -120 per year, sell it for 1500 within 3 year, so with 360 as reserve for 3 years and then sell it with 200 profit.
   1. refinance home have to has baseline for credit and
   2. negative cashflow
2. Purchase 700, time 1 year, refinance 1500 with 10 to 15 monthly installment, rental is 120 per year, you got extra 800 when refinancing and 120 when rented, with total 1620 (150% upfront), buth with cashflow of -30 per year (100 for reserve for 3 year)
   1. Refinance home have to have baseline for credit
   2. Negative cashflow, but can be adjusted by taking smaller loan, like 800 with 8 to 10 monthly installment
   3. Not considering the renovation cost yet.
   4. Or left some equity in the asset and prioritze positive cashflow

For buying Cashflow

1. Purchase 1000, time 1 year, setup business / franchise, refinance
   1. AWhat kind of business – commercial building only? Home only? Monthly home business? Retail store business? Food stall? Food spot?
2. Buy existing business that generate cashflow?
   1. Franchise usually not transferable
   2. Traditional mom and pop store that can generate more than installment, the acquisition price is high?
   3. Financial products? Stocks, mutual fund, fixed income? Invest Profit only and Recyclye the Principal? But it’s not cashflow, it’s capital gain with small dividen.
   4. Kos? Co Living space? Co Working space? Strip mall concept?
   5. Apartment?

So to summarize

1. Need to find a working model for rent: either high rental income, lower refinance or strategy
2. And for cashflow business: fast to set up, stable cashflow, can be borrowed against (credit worthy)