🌟 Next Generation Business: Innovative Strategies 📈
New generation business is necessary because modern businesses do not always give their owners what they want. As is well known, businessmen want a lot of money, but they get very little. Why is that? Because they mainly own businesses of the past generation, which have reached their maximum development, because the product deficit that was eliminated within their framework has already been eliminated. Many businesses of the past were based on the “money – goods – money” scheme, but this scheme no longer works.
Proof? Please — many people have money, but no business or have one, but it is not profitable. This is due to the fact that the business processes on which these businesses are based no longer cope with all the conditions that exist in the modern economy. They cover no more than 50% of these conditions. Accordingly, more than half of everything that is needed for business in modern conditions remains outside of it. Hence such results.
What is a modern economy? The modern economy is gradually transforming into an ideal economy. An ideal economy is an economy where the product that brings profit is ideas. Only a new generation business that matches the ideal format can give businessmen what they want. Only such a business will cover 100% of the conditions of the modern economy and will be effective.
In order to enter the business of the new generation, in order to understand what it is, we need to talk a little about the businesses of past generations. Let's start in order. Initially, people lived by subsistence farming. In principle, even now in some countries of the world there are people who live by subsistence farming, in other words, they live by collecting different plants and hunting animals.
They live well by their standards, they seem not hungry, they seem to be well-dressed. But this is only by the standards of these people themselves. To a civilized resident of any civilized country, such a standard of living would seem not just low, but generally below the baseboard, hardly anyone would want to live the way “savages” live.
In other words, subsistence farming allows you to live somehow, but you can't live normally by modern standards with it, no matter how hard you try, and that's a fact, especially since subsistence farming doesn't give you the opportunity to get rich enough to afford everything your heart desires. You can't sell roots and game for a lot of money, and the volumes of roots and game that nature produces won't allow you to make billion-dollar sales.
Now let's move on to the next step. The next step is the agricultural sector. Even if we lose sight of the fact that the modern agricultural sector has, among other things, technologies that are not agricultural at all, i.e. it is not purely agricultural, we will see that none of those who live by working on the land have any particular wealth. They live somehow, but not richly.
This happened because there is no shortage of goods, but there is a shortage of consumers. Many representatives of the agricultural sector are generally on subsidies. This situation is typical for all countries. In the modern world, the agricultural sector cannot generate wealth, at least because the price of agricultural products is very low and it will not be possible to raise it much. If, for example, a kilogram of potatoes costs 0.5-1 US dollar, then a kilogram of Pringles chips made from the same potatoes costs 20 US dollars.
In other words, the main money on potatoes is earned not by farmers, but by those who process it, i.e. industry, which is a new generation business in relation to the agricultural business. There are many similar examples for other products. Thus, we can conclude that farmers are not the main ones even in their element, they are, so to speak, mercenaries of industry.
The situation is similar in the extractive sector. It used to be a new generation business, but not anymore. Despite the fact that some have billions of dollars in raw materials they sell, for example, oil producing countries such as the UAE, Kuwait, Russia, Norway, the profitability in this sector is low almost everywhere, and sometimes you have to sell everything at a loss.
Those who process oil earn much more, i.e. the next sector of the economy in the hierarchy. Take gasoline, for example. If the price of oil is now about 800 US dollars per ton, then the cost of gasoline, which is produced from it in Europe, sometimes reaches 2000 US dollars per ton. In other words, again, as in the agricultural sector, the main share of profits is received not by those who create the product of this sector, but by those who process it.
It is certainly an offensive situation for those who are engaged in extraction, but they cannot change it, because they are entirely dependent on those who are above them. True, some oil companies have expanded their business and are engaged not only in extraction, but also in processing and sales, thereby receiving profits in various sectors of the economy.
As for industrial goods, the situation in this sector is similar to all of the above. About 200 years ago, industry was a new generation business that brought in fabulous profits. Now this is far from the case. Take any product, from nails to cars. None of these products, if sold as simple industrial goods, bring in such a volume of profit that one could make a fortune.
Previously, when industrial goods were in great deficit, when industry was a new generation business, one could become rich by opening a water or a factory. But now the situation has changed, now very often purely industrial enterprises have to work either on the verge of zero profitability, or even without it at all and barely make ends meet. Until recently, real wealth on industrial goods could be made by those who traded them, or those who had a brand.
This happened because there is no shortage of goods, but there is a shortage of consumers. Retail chains created consumers and made profits from this. In the same way, brand owners created consumers and made money for this. As a result, manufacturers became dependent on brands and retail chains and ceased to be the masters of their own party. Although now even those who own brands and retail chains cannot get very rich, because they have exhausted their capabilities.
How to Launch a Next-Generation Business
The next sector, which was once a new generation business, is information technology. If earlier wealth could be made by releasing various information products, now it is almost impossible. Previously, wealth was made on information products because they were in great deficit, and this allowed “skimming the cream”.
Now the situation has changed, now millions of specialists work in the information sector, who create many thousands of information products for any taste and any purchasing power. In other words, competition in this sector is simply off the charts, which has affected the price level of information products.
Now they also often cost pennies, and many are offered for free. So, why have all these sectors become almost unprofitable, and often even loss-making? It's simple, because they have turned into infrastructure for a new sector – the ideological economy, and infrastructure is always expensive. Infrastructure is never profitable.
Where are real riches made now? They are made in the ideal sphere and it is here that people who have become rich on this have gathered. Let's take Joan Rowling, she became rich by inventing and implementing the idea of a fairy tale, where the main character is Harry Potter. In the same way, Sergey Brin, whose company at first glance deals with information technology, became rich on the idea of a special search engine.
The ability to dictate terms leads to the ability to make good money on it. In fact, he came up with, materialized and sold the idea to investors. Then we can remember Mark Zuckerberg, who came up with the idea of the FACEBOOK social network and sold it to investors. Here we can also include James Cameron, whose latest film, Avatar, has earned its creator more than 2 billion US dollars. If you audit the marketing of these projects, it will certainly show very high results.
At one time, the authors of “Terminator” and “Matrix” also earned billions of US dollars on the ideas. Yes, yes, it was on good ideas and their good implementation, and not on the films, that money was earned. Many films are made, but only a few have success, and all because their potential is different and it is greater in those films whose idea is better in itself and better implemented.
So, all businesses that are not connected with the ideal economy, the economy of generating and selling ideas, have become the infrastructure for this sector. The business of the new generation is the generation and sale of ideas. As the analysis of brands shows, for example the Apple brand, all sectors now depend on this sector, and where there is dependence, there is an opportunity to dictate the terms, which is what the ideacrats do.
The ability to dictate terms leads to the ability to make good money on it, which is what businesses associated with the generation and production of ideas do. Their owners become the richest people in the world. What should the rest of us do?
The rest can leave the market, or stay and be content with little, producing products that make it possible to earn pennies, they can find a representative of the new generation of business who, under certain conditions, will create products for them that are not penny products, or they can themselves become representatives of the new generation of business and get a real opportunity to get rich.