Time to close scrap gold business
In economy, there are different notions worth getting familiar with. One of them is definitely the question of life cycle of a product. The cycle of every product that is available on the market is similar. The theory is known since the beginnings of modern perceiving of economy and the times of division for global and national economies. Macro and micro in other words. The first stage is the stage during which the product is launched. The competition is very little at that time and it helps to get to the later part - growth. The product gets more popular and incomes rise. More competition appears though. Another phase is maturity, the market becomes full of the product, the incomes are still high but it is time to think about some additional strategies to prolong the cycle. Another stage - stage of saturation is already the last one before the decline stage. From then on, we have to think to do something about the product to make it more attractive or to stop producing it. The same scheme can be applied to running a business. Imagine you open a scrap gold trading facility. You are the first to sell gold and buy it in the neighborhood - it is okay. Just a while later competition appears and more people sell gold apart from you. Your scrap gold business needs something extra. You invest in advertising. It doesnt help on long-term basis. There is no other way out - it is time to close scrap gold business and invent something new...