When to Invest in a Company?

A company may go through three stages starting with slow growth followed by rapid growth and finally a stage of slow growth once more that may ultimately lead to downsizing and even death of the company altogether. This process may take anything from a few years or a few decades to a few centuries. Ultimately each company dies same as with living organisms.

In nature, a population witnesses slow increase in number at first when the population size is still small, followed by a stage of rapid increase in numbers as the population increases in size and so does the number of births then this is followed by a third stage of fewer and fewer organisms being born and surviving due to lower rate of birth and higher rate of death ultimately resulting in the decrease of the size of the population.

It is thus wise to invest in a company during the period where it is witnessing rapid growth, this is the most fertile period in which the highest returns on investment can be made. It would be wise also to pull out from such company right  before its growth rates starts to dwindle.

What is the Carrying Capacity of your Target Market?

As the number of organisms increases in a specific environment, their birth rates may tend to decrease while their death rates tends to increase. This takes place until they reach a point of equilibrium at which the population number remains constant. If such threshold was exceeded, population starts decreasing.

In the business world, the threshold can be calculated to determine if a market still has a carrying capacity for more businesses to enter or if it's saturated enough and would only show diminishing returns for any further attempts to penetrate it by new businesses. By entering a market that has already reached its carrying capacity, the only way to survive in it would be to 'kill' already existing businesses working in it. Like in the natural world, not all environments exhibit a birth rate or death rate dependent on density.

Unstable Couples do not Give Birth

In order for offspring to survive, they need to be born in a safe, nurturing a stable environment. Lack of such environment would make the bringing up of new offspring non-compliant with the laws of nature.

If a man and woman get married but are living an unstable life, due to lack of stable work for the husband or constant travel of the husband away from his wife, they might find themselves unable to have any children even though medically they are perfectly capable of having babies. In such case, in order for them to have a higher probability of getting children, they must attempt to make their lifestyle more stable such as be securing a stable job by the husband or for him to travel less.