While running business owners have to face numerous problems, like marketing issues, funding problems, and saturated growth. These problems change when one moves from one point to another or you can better say it challenges. The larger the business, the more the competition will be.
The above line is real, and you cannot simply refuse it. Even many business people face a terrible situation, like County Court Judgment. But, if you see that this problem has some solutions that you can easily acquire. For example, investors for funding problem, and CCJ loans for judgment scenario.
Now, do you think that every problem has such a simple solution? The answer is no! There is one major issue that most of the young business person faces that is “Chicken-and-egg” Problem.
Let’s see what it is and how you can get rid of such conditions fast before it affects your business.
What Is A chicken-and-egg Problem?
You must have heard a chicken and egg paradox. If not, then let us tell you. It is a statement that reflects the scenario where one cannot say which thing comes first, either egg or chicken. Now, such a condition occurs in businesses too.
Many such situations occur where two things depend on each other. Reducing one can affect the other, and vice versa.
Suppose a company is looking for more sellers, but it is possible only when you provide value to buyers. If we consider the following situation (Value to buyers) is depends on the more potential customers. It relies on the amount that you offer to the sellers.
You can see everything has some connection with the other. If we disturb any part, then it affects the entire chain. It can be better seeing as a LOOP. This small thing may not seem dangerous for the business, but it can affect the business in multiple ways.
How Chicken-And-Egg Problem Affects the Firm’s Growth?
We have mentioned above that if one thing is affected by the other, then the entice cycle gets disturbed. Now, in business, strategies changes with time, and it is not possible to carry all the factors together while making the choices.
There is a possibility that an owner wants to alter one part without affecting the other one. It generates issues, like:
- Poor decision making
- Introduce additional cost
- Fail to get prompt success
These are the results of the chicken and egg issues. It clearly shows that one has to manage it as soon as possible.
5 Method to Handle the Chicken-And-Egg Problem
The below-shown ways apply to both small and large firms. So, you do not have to worry about the company’s size, go ahead, and apply these methods.
- Come With Small Changes
You can see you bring a major alter in the strategy that can affect the firm’s growth severely. But, if you imagine a situation where you are introducing minor changes that do not put any effect on the other factor. So, here, you have to avoid such kind of large decision making.
- Aim To Bring More Potential Customers
No matter what, you should focus on the prospects, and bring techniques that can change them into potential customers. The significant advantages of prospective buyers are that they can bear the minor changes, and with this, you can continue to the technique, and grow the business.
- Reduce The Cost Factor
Several times, the owner spends too much money to build a plan. Though it is easy to bear for the large firms, for small companies, cost plays an active role. Now, you have to consider the fewer amounts but bring a significant change. Do not emphasize the cost factor; aim for the growth and cost-effective methods.
- Use The Available Resources
Suddenly changes in the resource may affect the cycle severely. To avoid it, you have to come up with the methods, where you can manage the thing whatever resources you have. However, we cannot rely on an ideal situation. If the situation demands, then you can take aid with the new resources.
- Break The Cycle
It is a bit difficult to break the chain or cycle suddenly, now you have to take the risk by following the points as mentioned above. Here, you have to consider that there is no relevance between these factors. You can alter the strategy whenever there is a need. It may seem risky, but you have to conduct it if you want to get out of this chicken-egg problem.
These are the points or better say solution that is not easy to direct, but you have to put consistent efforts to make it successful. Do not try to jump directly from one to another; move only when you get the results as per your expectation. So, supervise the points and build a successful business in a short period.