The 4 Steps Of Any Market... #shorts

2 Nov 2023 · 1 min

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A short YouTube monologue by Ryan Daniel Moran outlining a four-step cycle that markets typically follow: a 'wide open west' opportunity phase where demand outstrips supply and first movers win; a 2–3 year consolidation where weak products are flushed out; a buyout phase where large buyers (e.g., private equity, aggregators) acquire winners; and a crash when deals slow, interest rates rise, and many aggregators fail — followed by renewal and new opportunities, with specific reference to e-commerce.

Chapters

Every market goes through cycles when there is a brand new opportunity, there's more demand than there is supply and everybody who participates wins. These wide open west periods are when there's all kinds of frothiness for buyers and first movers win. After about two to three years you have a period called the consolidation. The bad products get flushed out by the good ones. After it consolidates you have buyout period. This is when the really big companies like private equity come in and they start buying up the winners. Once that slows down you have the crash. Interest rates are up and the aggregators, a lot of them have gone out of business. So you have this crash in E commerce where no one's buying businesses and there doesn't seem to be any obvious growth in the sector. But after a crash comes a new wide open west and we're seeing brand new opportunities open up that are making it possible for even new entrepreneurs to get a foothold for a long time.