How to grow your business in a demand constrained economy.
Watch the full video at: https://www.westernston.com
There used to be a time when you, as a business owner, could just BUILD, and THEY WOULD HAVE COME.
A little bit of advertising went a long way. Customers were easy to acquire, because the economy was growing rapidly (and not just on paper)… Inflation was low and people had increasing amounts of discretionary income.
The competition in any market was limited… because every business owner was doing something unique.
Advertising was not so expensive.
Clients and customers were loyal… simply because they didn’t have very many choices.
We lived in a supply-side constrained economy.
And even though technological inventions kept bringing the prices down… business owners flourished. Because public’s discretionary purchasing power kept on increasing.
That time… is OVER.
Today things have changed.
We now live in a demand-side constrained economy.
10. We lived in a supply-side constrained economy.
11. And even though technological inventions kept
bringing the prices down… business
owners flourished.
Because public’s
discretionary purchasing
power kept on increasing.
29. The retail division of
Amazon.com is still posting
losses.
The net profitability largely came from the web
services division… which is used as a service provider
by other big companies such as salesforce.com and
Netflix.com.
30. CNBC reported on March 9th,
2017 that Treasury Secretary
Steven Mnuchin has called on
Congress to raise the debt limit
at the first opportunity. Which
means more money printing,
and more debt for all of us.
31. To make matters worse, Republican senate majority
leader Mitch McConnell has poured cold water on
President Donald Trump’s goal of completing the tax
reform before the August recess. He said, “I think
finishing on tax reform will take longer.”
32. This is in light of the fact that
CBO (Congressional Budget
Office) released a study on
March 8th, 2017 stating that US
has the highest top statuary
corporate tax rate (39.1%) in
the world.
33. • Wafer-thin margins
• Increasing competition
• Skyrocketing advertising costs
• Hyper-inflationary economy
• Plummeting attention spans
• Dwindling loyalty
• Crumbling debt
• Enormous taxation
And sadly, there seems to be no respite in sight.
37. Good strategy addresses
optimal deployment of
(inevitably limited) resources
based on circumstances. As
such, strategy must change with
changing circumstances.
38. But a vast majority of business owners continue to do today what they did…
Years… or even Decades Ago.
40. If you were a war general, would
you not adjust your strategy based
on where your troops were
fighting?
Would you use the exact same
strategy for coastlines and
mountainous terrains?
Of course not.
41. Yet business owners (and even investors)
continue to rely on OLD
STRATEGIES that ONLY worked well in a supply-
side-constrained economy even today.
51. Westernston is a community of business leaders, owners and entrepreneurs who are
agnostic, dedicated towards exponential growth, and are unafraid to break the norms.