Once upon a time there was a farmer living happily with his family in a small village. He grow crops every year, sell it to the city market and earns good profit enough for his family for the year.
Once there is a drought and he is not able to grow crops. His family lives miserably that year. He thought to protect his family from future drought. He started fast food stall in the village.
In that year because of drought he has full time to concentrate on the fast food stall. He earned good amount from this small venture. He continued his business. After several months of hard work his fast food business grows with more customers.
He expanded his business into multiple neighbor villages.
He left farming because now he does not need to do hard work in the farm. He is earning almost five times more than what he earns out of growing crops.
Now he has enough money to send his boy for the higher education in the city. His boy went to the city for higher study. After few years when his son returned from the city completing his education, the farmer already expanded business to several cities and villages.
Now, the father suggested to take over the business because he is now old to run the business. The son who is well educated and well aware about different business funda and strategies took over the business.
Everything goes smoothly.
After couple of years there was recession. The son read many articles in the newspaper regarding impact of recession over different businesses and also suggestions to be prepared for the recession.
He thought that his business should also be prepared for the recession’s impact so that he would not loose the business at all. So he cut the order of raw material up to to 15% in one store. The farmer his father asked why you cut the order of row material to 15%. The son replied proudly dad, it’s recession. We need to cut our business in order to survive in recession. The farmer told him, son I don’t know what is recession. But, since you are well educated you must have taken the right decision.
Because of less raw material on that store less sell is made. So 15% of customers for that store needs to find alternate. This becomes daily practice. The son repeated the same decision on every store he has. So he loose 15% of his business.
In subsequent steps in order to survive in recession he decreased the order for raw material by 10% frequently. Very soon he loose his business. Every store he owns is closed now.
Moral of the story
Sometimes your thinking matters more than what is impacting you. Like the recession has no impact on the farmer’s business but still his son acts like his business impacted from recession and lost the business.