Help is hired when sales increase.... (sales = demand)
I have a small business, run by myself, and I am now almost to the point with my sales, to be able to hire a part time person to help....if my sales/demand had not increased, then I would not be able to take on a new hire...
But at the same time, if I did not have the money to increase my supply of what is projected in demand/sales, then hiring another person would be fruitless....
Both are needed, demand, and the ability to supply the product for the increase in demand.
Demand is crucial, no one is saying otherwise. Supply and demand is the foundation of business (and economies, but that's a bigger issue). The argument seems to be that the demand occurs first, by the people, and the business simply fills the void. That's bass ackwards.
You offer the goods and services first, if it's marketable you have the demand, if it increases you can increase your supply with new hires, or machines, whatever.
I don't believe it is "ass backwards".... Demand or projected demand comes first...
how do you know what to buy, to sell to the customers if you have not projected what the demand will be FIRST?
Supply is not created or purchased by the storefront, without projecting your demand so you can get your OTB, (open to buy figures), the money you need to buy for the "demand"...
yes, mistakes are made and you can misjudge demand, buying too much leaves you over stocked, with no money opened to buy more things that could sell, and buying too little leaves you with customers 'walking' out, with nothing bought in hand.
It does take money to make money, but all of that which is spent by the business owner in product, IS BASED ON DEMAND or your projection of what the demand, (sales) by the public will be.
This is Not done in a vacuum either, the buyer/owner has previous sales figures and trends, and other market research that they use before they spend ONE DIME on their "supply"....
buying a bunch of crap (supply) and throwing it against the wall haphazardly to see if it sticks (it sells), is a guaranteed failure for any business....those are the businesses that go under.