Manufacturing or trading business?


There's a long-standing debate about which business is more important: manufacturing or trading, since development is the most important thing for a company. Let's look at why.
The goal of any commercial company is profit. Ultimately, we're always interested in money. Therefore, we need to determine what timeframe we're talking about.

If we're talking about today or a short period of time, then sales will be the primary focus. Since today, you can sell something you don't even have, get an advance, and then disappear. We often see this situation, for example, with unscrupulous freelancers.

This won't work for long, since with every deceived client, your reputation is ruined.

Now let's look at a long-term situation, where we're honest and have a product. There's a common belief that sales will still be the primary focus, since even with a product, without proper sales, the company will eventually go bankrupt. But I just said the same thing about the lack of a product. Therefore, product and sales are equal. But what is more important then, product and sales?

Development. That is, work on creating or modernizing the product, company processes, service level, and so on. Because it is the constant work on improving the company's set of activities, as well as the quality of these activities, that will allow you not only to take a place in the market but also to maintain it.

Because even if you enter the market with a very good, unique product, with high-quality sales, and well-established organizational processes, your business model will be quickly copied, and over time, you will lose your competitive advantage. However, if you constantly work on developing your product, processes, and so on, you will be able to maintain your competitive advantages or find new ones, which will allow you to maintain or increase your market share.

Develop. Earn money by improving your company..