IT'S WORTH WHAT IT'S REALLY WORTH - WILLIAM EASTMAN

OR demand equals supply...

PROFIT RADIO..."Let's Grow Together"

Introduction
One theme consistent in Season 3 is the station's becoming your CGO - Chief Growth Officer for Hire, the underlying role of the Network. All of my shows: Growth Community, Building in Front of You, Your MLM Empire, Economics for Owners, Self Managing Organization, and Creating a Consulting Business - everything centers on how to use the IBGR Network for business success. 

​Our relationship with the listening audience of entrepreneurs and owners: 

• Provide INSIGHTS that are useful
• Provide TOOLS that work
• Provide RESOURCES that saves time and money
• Make a FINANCIAL impact on the business 

That is what is meant by Looking at IBGR as your CGO - your virtual Chief Growth Officer.

LISTEN > ENGAGE > APPLY

Objectives - The WHY
Here is the situation confronting you as the owner. The economy has turned around and the expansion is obvious to everyone except pessimists. If you made the moves suggested in last weeks show, your revenues have picked up and the business might not be totally healthy but you can see it in the immediate future. 

You were early in the expansion and other companies are joining your optimism. The biggest signal that this is not an illusion is the expansion of credit. People don't lend where there is a high risk of default and people don't borrow when their revenues are uncertain. 

The second signal is you and your suppliers are starting to run out of supply. All of the leftover inventory from the contraction is being sold.

The pandemic and government's response is the wild card. When the business cycle is allowed to work its way the economy is very predictable. When government gets involved it distorts the market and many effects are not predictable of obvious until...

Key Issues - Owner Perspective:

1. What are the signals that tell me to become optimistic and aggressive with the expansion?
2. What are the best moves that balance the desire to take advantage of the expansion and still keep my risk manageable?

What You Need to Know - The WHAT
At The Bottom – True Value > Market Price
Given the impact of the pandemic I choose to start this model at the bottom – a situation where Supply Exceeds Demand Suppressing Inventories and Price.

• Step 2 Credit Expansion. Since the downturn, credit has been difficult to acquire and not a smart decision. If you are in-doubt about customer buying, why take on debt? Now that the economic is in recovery (a view not shared by everyone) and demand is absorbing any remaining inventory, lending institutions will lend and businesses will borrow because customers are buying. Also the loss of competitors opens opportunities to expand to unserved markets / niches / customers. When the market expands, it is time to take over your competitors space.

Midpoint – True Value = Market Price
Supply Equals Demand with Rising Inventories and Fair Pricing.
This location shows expansion has reached stasis – Demand and Supply are in rough balance, the current market price for a product or service represents fair value. Up to now the price / value proposition was unbalanced with products and services undervalued or not commanding a price that represents true value because of excess supply. However that is changing. Quickly Demand will Exceed Supply and drive up prices. This leads to inflation and diminished buying power of the currency. Additionally the market begins its bubble phase because the higher prices will be interpreted as a signal to make more and soon supply will exceed demand.

• Step 3 Euphoria. Good times are here again. Everybody has a short memory of the last time, but you know the bubble has started. If you got in early at Steps 1 & 2, now it is time to prepare the company for the downside by taking advantage of the common euphoria by expanding business with your existing accounts with a new product or service.

Next week's show will cover your moves when it is apparent the expansion is over - perhaps where the global economy is currently located.

What You Need to Do​​ - The HOW

1. YOUR MOVE BEFORE SUPPLY = DEMAND - Anticipate Demand and Expand into New Markets with Current Offer.​ You are expanding into adjacent markets and increasing the size of your customer base.
2. YOUR MOVE WHEN DEMAND EXCEEDS SUPPLY - Meet Demand and Expand into Current Markets with a New Offer. Understanding new needs generated by the increased prosperity, you expand your offer to increase market shar and share of wallet.

​The purpose of this show was to provide you with a context to understand what is happening in the economy so can react smartly at a minimum, and take advantage of this knowledge to stay ahead of the competition.

We are your single, one stop source for business success, period, end of story.

Make sure you leave some thoughts in the comment section below. I am interested in continuing the conversation.

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