One of the core things every entrepreneur needs to know in business is demand and supply. That can best summarise what happens in the marketplace anywhere in the world. Whatever the business you are in, the law of demand and supply always applies.
Defining Demand and Supply
On its rudimentary level, supply is how much the producers of a product or service are willing to produce and can provide for the market with a limited number of resources available. Demand on the other hand is how much of that product, item, commodity, or service consumers are willing and able to buy at a particular price.
Scarcity and supply go hand in hand, and so is demand and supply. Put in another way, anywhere there is scarcity, there’s a supply need. The market demand is a set of actual or potential customers, who have a common set of needs or wants.
Whatever is scarce is a sign that there is a market need, and people are usually willing to place a higher demand (or value) on it. And value lies in providing answers where there are market questions and frictions posing as needs.
Market Needs Generate Demands
In order to sell anything, there must be a demand for it. The market demand is a sign that market need exists, and the simplest way to create demand is to look at what needs fixing, changing, or solving. It’s difficult to supply what the market does not want and remain in business. When you supply what the market does not want, you go out of business fast!
You must understand this fundamental principle necessary to scale any business, and that is: are you addressing a real and deeply felt need or eliminating specific problems? What impact will your solution have on the customer? Who will buy your solution is as important as the solution you have created.
If there is no market for your product or services, you have no business. And if your impact in the market is negligible, so will the demand from the market. Whenever the demand for your solution is small, so will be what you will supply to the market.
The Market Always Demands for Value
There is no point in selling a product or service unless you know there is a market for it. Great enterprises are particularly good at finding gaps in the market. They understand the needs of the customer and work to address them.
You cannot deliver value without it being accepted in the market. In other words, whatever value you are creating or have created is meaningless without a customer who needs, wants, desires, and, ultimately, determines the final value of your creation. Whether you call them your customers, your market segments, or your audience, they provide the necessary context paramount in effective business growth. You can’t create a sustainable business with low market demand.
Is there a need in the market for the products or services you rendering? What unmet needs, or poorly met needs, do you see in the marketplace? This is how I summarised it in my book, Business Sense: Find a hole and fill it…Find a thirst and quench it…Find an itch and scratch it…Find a need and meet it… Find a want and satisfy it…Find a hurt and heal it…Find a question and answer it…That best captures the pulse of this article!
So, if there is the right demand in the market, then unending supply will follow.
