Engineer-A-Business

Reason tells us that efficient markets are good things, and for the most part they are.  They offer buyers the opportunity to ensure that they are purchasing products and services for what they are worth.  They also tend to be supported by efficient distribution systems, support systems and detailed information.

Entrepreneurs also know that the simple economical laws of supply and demand determine profitability.  Profit is maximized when the supply and demand match.  One of the problems in doing business over the Internet is that the demand for products often exceeds their supply.  The obvious problem with this is that entrepreneurs have to sell fewer products at the same price, which drastically reduces profitability.  One of the reasons that many entrepreneurs have had a difficult time being successful by introducing products online is that they have not understood whether or not the products they were selling had an efficient supply-demand relationship.

Too many have thought that the best products to offer were those that were in high demand.  Unfortunately, they find out too late that it is not possible to build up enough of an inventory to meet that demand.  Failing to analyze both sides of the market leads to entrepreneurs putting their success up to chance, regardless of what the demand would be by itself.  An analytical tool such as <a>The Internet Time Machine</a> is a shrewd way for entrepreneurs to determine whether or not supply meets demand. 

Last Updated (01 April 2010)