OR demand equals supply...
PROFIT RADIO..."Let's Grow Together"
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:
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:
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.
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.
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
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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