This is the second of our blog posts connecting the basics of the economy to small business. We are taking the popular series of basic economic videas called ‘We the Economy’ and connecting them to the way your small business (or prospective small business idea) operate. Over the next twenty or so weeks we are going to take a regular look at the very basics of our complex global economy and once a week we will present one of the videos from the series and try to add a little context, especially for anyone who is thinking about taking a tiny step toward being a more direct and powerful cog in the enormous economic machinery by starting their own business.
This week we are looking at one of the foundations for any kind of retail business – or indeed any business of any size selling goods OR services – supply and demand and their relationship from the point of view of the buyer and seller. Any entrepreneur understands the basics of supply and demand instinctively but that understanding starts to fray as competition and pressures on pricing set in. This video should help you understand how those market forces could possibly affect you. Plus it has dancing.
Anyone who wants to start their own business is setting out with the very same goals. And even in an economic model as simple as that illustrated in this video there are important lessons. You need to work with your neighbors and community in order to build a market for your small business. And if you have existing competitors you need to be competitive in some way to succeed.
If Supply-and-Dance' has inspired you to finally take that step towards entrepreneurship for yourself, then take a look at our previous episode, 'Cave-o-nomics' and also check the links below for more information about getting started on your own business idea.
The Pricing Conundrum: Figuring Out the Right Strategy For You
The Biggest Mistake Is Ignoring the Law of Supply and Demand