19 December 2011
The world economy is comprised of complex mathematical algorithm relationships between both supply and demand. The simple way of breaking down the world economy is as follows.
There is an inverse relationship between supply and demand, of products and services. At times there is more of a demand for a product or service than a supply, and vise versa. High demand for a product that is in short supply drives prices high, thus causing suppliers to focus more on product production causing the supply for that product to skyrocket, pushing prices back down.
This sea saw between supply and demand can be seen in future commodities and credit markets thus causing the economy to go through boom and bust cycles. As of now the world is in a bust cycle, and although there are the same number of resources on the planet, the access to credit is a lot harder to come across.
Due to the fact that credit is harder to come across entrepreneurs are coming up with creative ways of getting more with less. A perfect example of this can be seen with what entrepreneurs are building out of shipping containers. Some entrepreneurs are stretching their dollars further by transforming containers into small businesses. For example, a 20 foot container is more than enough to become a flower shop.
Transforming a container into a flower shop is relatively easy to accomplish. Rather than build a structure from scratch, utilize a shipping container and all you would need to do is install some insulation, hardwood floor, drywall, and windows. Compared to erecting a structure from nothing, transforming a container into a shop is an overall easier and practical small business solution. When times are tough it is the entrepreneurs that find innovative ways to make their visions come true and succeed.
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