The answer to the chicken and egg question

Over the last few months, I have been working on a new business idea and in the process I have interacted with a lot of entrepreneurs – new, aspiring and budding. It has been a fantastic learning experience for me. I will write about that later.

What I find most common among all of them is a perennial conflict between the investment required in creating demand (customers) and building the supply (service levels / operational strength / production capacity etc). The metaphor of the chicken and egg question was a recurring theme across this bunch of people struggling to make it big.

Over the last few days, when I was personally stuck with this problem and was going through this decision making crisis. As it often often happens, some of the best insights in life is found when you are pushed to the corner. I realized that the attempt to answer this question is often answered keeping the physical ingredients in view.

To my euphoric realization, I will decide what will come first. Since the question is mine, the answer will also be mine. Leaving the question hanging owing to philosophical / physical arguments will not get me anywhere. What will get me going is my decision.

Since the question is mine, the answer will also be mine

Hence, it is my decision to invest in creating demand or invest in having a robust supply back end which will further fuel the demand. Like the chicken and egg, the demand supply question is also cyclical in nature. One will follow other, once the cycle starts. I need to decide the starting point and move on in life!


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