Every Business depends on another area of activity or more than just one area. Just like various Business Niches you may address, the firms/products in the niche are in turn going thru phases or segments - like Fast Growth - Steady Growth - Stability - Slow Decay - Fast Decay or Quick Fall. The products and services are not the same for every segment.

Each phase is a new business opportunity for the Ever Alert. Every opportunity will have its own margin and these keep changing with time and competition.

Each Activity is dependent on others .Every product or Businesses Activity goes thru a Inverted Bathtub Cycle. So you have to create a range of products for the different phases of that Activity. The Growth Phase products will lose the glitter soon and the Maintenance Phase creates a need for new products or services.

The Undertaker gets his bread when the cycles come closer to the end. It does not all happen together in the same way to every activity.

Reserves are most important for an organization, if it wants to continue its service long term.
It may not always be "up up and away" sometimes it may be "going going gone" !

The roller coaster ride has to be taken by one and all if we have to go beyond.
So when the cash registers are ringing set some aside in government bonds.
When the dry days arrive you can go on smoothly without hiccups.

Because after a downturn there is a upswing, then of course down again.
People who can manage these, remain in bizness, it is not as easy as it looks.

- San BB 2002

Proactive vendor development, fanatic customer service and support.
Long term retention, training of skilled work force. build virtual assets.

This is the Essence of "Keep the Show Going" .

We cannot always do a DeBeers on every commodity or product line. Well, if you want to know what "Doing a DeBeers" means, Study about the History of Oppenheimer, how he got his first difficult finance from Morgan and created a Marketplace for diamonds (Dense Crystalline Carbon).

Many times the Administration goes too strong on this 'Anti Trust' thing, weather it is Oppenheimer, Rockefeller or AT&T. It is necessary to be creative in managing such issues. These big entities provide large scale employment, directly and indirectly. Their Capital Expenditures and Commitments are huge and need very rigid and strong leadership. Mistakes happen, when we want to "Keep the Show Going". The economy of the region can be affected by ego wars.

Now back to matching demand and supply, commodity or service. When there is is a massive mismatch, then there are major financial shocks. Minor matches needs to be adjusted by Synchronization. Consolidation, Promotion, Pricing and Reducing/Incrementing Production and Inventory Gracefully (JIT - Just in Time).

One way was "Doing a DeBeers", it was a strategy, otherwise it is difficult to pay for the Mining Equipment and the Huge Digging Costs, for a Piece of Condensed Carbon.

One of the common mistakes we make is, Projecting Market growth or Estimating Market Potentials over a Period. Here is where we have to be very cautious. There are somethings we can see, some unexpected parameters will pop up at the wrong time, disturbing well thought of equations and plans.     

Projection of Growth and Market Size

It is important not to over estimate the Market Potential, even the long term business potential.

• Short term potentials can become an error when you make a projection when riding the crest of a Business Domain Cycle.
• Long term potentials can be inaccurate due to changing technologies, innovation of others and The Gold Rush Syndrome.

When Manpower is Applied with Skills and Technologies on Materials and Machines..... - 2M
The Products and Services of a Firm, Business or Factory are Created or Manufactured. - 1M

These Products are Services are  then Sold - Marketed to Consumers, Money is Earned - 2M

The wheel of Economy Spins as Consumers Spend Money, we should always remember that .......


The Manpower of one Company is the Consumer for another Firm.

 - Anantha Narayan - A blog post of mine around 2001 enhanced in 2005

Preventive Maintenance of Bizness

Creating a Firm is one thing, Grooming it & Maintaining it free from Troubles from within & without is more important. Small is a Good thing.

Ponds & Lakes - Build a Reserve Fund

Just like a Network of ponds and lakes collect rainwater from streams to replenish ground water for wells and maintain humidity in a town. So also for money, when the cash registers are ringing, keep some aside for the dry days.

Ground water analogy

Ground Water or Well water are derived from, you can imagine ... pockets of tiny underwater ponds and streams that make up the water table. The Visible representation on the surface being the Lakes and Ponds.

When you use up this resource quickly it is like "fast discharge". The "recharge" has to happen from rains and lakes. If the discharge is more than recharge, then two problems. Many more may be there.

• No more enough water for the vital needs if you draw more than the rains can replinish.
• Foundations of Buildings/Bridges/Roads in danger, as large cavities in the layers.
   
  

Similarly in Business, your own reserve or capital is like the Well water. The macro Financial Systems can be compared to the water tables. Rains the Active Economy.

• Draw/Invest or use funds carefully, prudently in harmony with economy.
• Business can become shaky when the cash or credit flow is hampered.
• Foundation is shaky when the  elevated state of activity cannot be sustained due to lower inflow.