Your Economic Strategy
February 05, 2009
Think of yourself as a producer of a good or a service.
You are one, after all.
Now, consider supply and demand. Do you hold the view that supply drives demand, or that demand drives supply? "Demand drives supply" is the correct answer here, for simplicity's sake.
Your skills are the supply, while demand is the universe of what people want or need. Are you able to produce a service or product that is being demanded? If so, congratulations. If not, you have two options:
- put on your Marketing hat and engage in demand-inducing activities for whatever you supply
- determine, out of the universe of various demand, what you would like to learn how to supply - and get going on training yourself to be able to produce that product or service
These are obvious points, but I make them because many people don't get the basic supply and demand concept. They are under the (false) impression that, because they possess a supply of something, an ability to produce a product or service, all they have to do is find the demand for whatever it is they supply. Because there MUST be a demand, mustn't there? No. All too often, people pursue what they enjoy or what they are good at, without first stopping to consider whether or not the world wants or needs that skill.
The one who is skilled at Marketing can overcome the demand problem by cleverly figuring out schemes to artificially create demand that does not exist naturally, but it is a rare person indeed who excels at both Marketing and Supplying; usually only one or the other role can be filled very effectively by an individual, and the person who tries to do both can hope to find only moderate success at either.
For the majority of us, those of us without the gift of demand stimulation, the wisest course is to ask (and answer) these three questions:
- what does the world obviously need or want more of? iPhone App programmers, or Snuggy Blankets, or Bank CEOs, or Ziploc baggies/containers for all those leftovers we have since we're not eating out as much, or cheap entertainment/diversion/escape activities that compete with going to movies?
- how are those products or services currently supplied, or do they exist yet?
- can I come up with a method to be able to supply one of those products or services in a competitive way?
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