Biashara Economics: Get attuned to the cycles in your business – Lesson #4

Just as egg wholesalers know that business spikes during the school holidays due to increased demand, the ladies who trade in clothes, old and new, know that clothing is a discretionary purchase. In the low season, some switch to selling necessities like charcoal, or fresh veg. People still need to cook and eat.

Mama Margeret who used to trade in omena found it too seasonal for a reliable income stream. Both the supply, and the demand were seasonal, thus increasing the volatility of the market. Now, she has settled into wholesale of grains and cereals, with a bit of peanut butter on the side.

Once you get attuned to the natural rhythms of your cash flow – and this, really, is what takes apprentice traders anywhere between 3 to 4 years to feel confident – you can start planning to diversify into wider range of products that work together in a sophisticated financial flow portfolio.

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