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This is a series of articles about studying general scientific ideas to
create a wealth building system that works according to the laws of the
Universe. These concepts come from observing our environment.
Scientists have discovered that the laws of nature follow certain
patterns. Some physical laws seem to be present everywhere, from the
tiny atoms to the enormous stars.
Everything on the physical realm tends to be influenced by these laws,
therefore they can be applied to your businesses too as you will see in
just a few minutes. The whole series contain the following articles . .
.
1. Entropy
2. Life
3. Multiplication
4. Synergism
5. Inertia
6. Gravity
7. Diversification
On this article I will share information with you about inertia. You
can apply this scientific principle to your business. In simple words
inertia is the tendency of bodies at rest to remain at rest, and bodies
in motion to remain in motion unless acted upon by an external force.
A spinning wheel for example, would keep moving indefinitely if it
wouldn’t face opposition by outside forces. Friction is a very common
force that usually act upon moving objects. All machines will encounter
friction of some sort. This will decrease the speed of the object over
time.
To increase the speed of an object you will have to increase the force
applied to that object, which will require more energy. For example, to
move a body from 0 miles/hour to 50 miles/hour some positive
acceleration will have to occur.
If the force applied to the body is bigger than the friction it
experiences, then the body will keep moving. If the force applied is
smaller than the friction it experiences, then it will decelerate and
eventually stop.
If you want to keep increasing the speed of a body indefinitely you
will need to exponentially increase the amount of energy used to move
it. The reason is that mass increases with speed. The faster a body
moves, the heavier it becomes and the more energy it requires to keep
accelerating (increasing its speed).
That’s why you can’t travel at the speed of light. It would take
infinite energy for a massive object to travel at the speed of light.
Even very light particles can travel only close to c when accelerated
in nuclear reactors, but not at c.
As you can see it takes a lot of energy to accelerate an object from a
rest state to very high speed. You will need more and more energy due
to the fact described above. Furthermore, some energy will be lost due
to entropy.
Then once you have an object moving at a desired speed, you will have
to keep adding energy to overcome friction, but you won’t need to
exponentially increase the amount of energy used to move it around
unless you want to further accelerate it.
This is common sense. It takes much more energy and effort to move an
object from a resting state to fast moving speed, than to keep its
speed once it is already moving. For example, if a body is moving at 50
miles/ hour it will tend to keep moving due to inertia.
Friction and other external forces can act upon the body, decelerate it
and eventually stop it. Then if you only want to keep the body moving
at 50 miles/hour, you will need to add energy just to overcome friction
and other external forces. It usually takes less energy to do this than
to accelerate the body from 0 to 50 miles/hour.
This is one of the reasons why cars spend more gasoline within a city
than in a highway. Cars accelerate and decelerate many times within a
city, while in a highway they keep an average constant speed.
Now, how can we apply this scientific concept to the business world? We
can do this in at least three different ways. Let’s start with motion.
We humans are supposed to be in motion. If you don’t own a business,
don’t work for yourself or you are not financially free, then the
tendency will be to stay like that. It will take considerable energy
and efforts for you to establish your own businesses. The more money
you want to make and the more successful you want to become, the more
energy (will power, resources, skills, time invested, etc) you will
need to realize your project.
You will experience some “friction” in the business world. This
includes but it is not limited to competition, risks, uncertainty, etc.
Many things will slow you down and you will need to add more and more
energy to accelerate your profits.
So, to go from $0/month on your own to $1,000/month by yourself (from
your business) requires substantial amount of energy invested on it to
make it possible. The hardest part is at the beginning, to break the
ice, to start trying, to be in motion.
That’s because if you have been “resting” all your life (meaning you
have never owned a profitable business) you don’t know any other way of
doing things. You may have a job. That’s what most people have and do
for a living. On the other hand, if you have never being self employed,
you may not know that for most successful businesses the hardest effort
is at the beginning.
Once the project is “moving” (producing the desired results) you will
need to keep adding energy just to overcome “friction” and “external
forces”, but the benefits justify the troubles. This is specially true
with certain businesses which require less effort and produce better
results than most others.
The phenomenon is comparable to a space shuttle. Most of the energy
applied to the project is used to lift the space shuttle off the ground
and make it scape the Earth’s gravitational field. Once in out space,
it requires less energy. It can be moved at desired speeds relatively
easy, because it encounters less friction and less external forces.
The ignition process is what consumes a lot of energy. In business this
is translated as will power. It means to keep trying even when you see
no result at all. To not give up too soon. To change the method as many
times as you have to, but to persevere on the goal.
Will power is associated with faith. If you don’t see any immediate
result, but you believe it can be done and you keep trying and pushing,
then you will be acting upon faith, specially if you have never done it
before. That’s because you don’t know if you will make it, you are just
believing.
Then the point is to be in motion. Change from a resting state to a
moving one. Start accelerating. Start moving toward your goal. You will
know later how much energy you will need to apply to your project to be
able to reach your goal. But if you don’t move, you won’t get there. It
is as the saying goes: “A one thousand steps journey starts with a
first step.”
You can change the method many times, the important thing is to keep
your goal in sight. For example, your goal may be to make a full time
income working part time on the Internet. The method you are using
could be affiliate marketing. If you try that for a reasonable amount
of time and it doesn’t work for you, then you could modify the method
or change it, but still keep your goal in sight.
You can try selling e-books, selling on online auctions, trading, etc.
In fact you can try many things. Just persevere on the goal. To do
this, you first need to define your goal. Think about it. Write it on
paper. Put it somewhere you can see it every day.
Establish a long term goal and then set smaller short term goals that
help you achieve the big one over time. “Roma wasn’t built in one day.”
It took a lot of time to build that city/empire. You didn’t learn to
walk in one day. Everything worthy in life takes time and effort.
Now, notice this. To go from $0/month to $1,000/month (from your
business) takes some effort. To go from $1,000/month to $10,000/month
takes even more effort. Usually whenever you try to accelerate your
profits, you will need to add more and more energy.
You will know how much effort it takes once you have achieve it. The
price to be paid won’t be the same for everybody, because some people
will have the skills and resources required when they start, while
others won’t.
Most likely those who start with an edge or advantage do so because
they already paid the price in the past. They may have an education,
experience or knowledge that they worked to acquire some time in the
past. On the other hand, other people will have to learn everything
from scratch and the experience they get now will be useful for future
ventures, etc.
A method you can use to increase your profits while keeping the efforts
relatively low is by using a lot of leverage. Also, you can set up
multiple streams of passive income. These are two concepts that I
explain better in my other articles.
Now, let’s talk about start ups. Many people become rich with a start
up, but many of those people also work twice as hard for a few years
than with a formal job. Some of them retire after they make a few
millions, while others keep working to get wealthier and wealthier.
In my opinion, some start ups do not require so much work. It depends
on your goal and the business that you choose. If your goal is to
become rich, the efforts required may be higher. If your goal is to be
financially free, the efforts required may be lower. If you are
standing in $0/month ground and you want to move into $1,000,000/year
you may get stuck.
Set realistic goals. You can do anything that you desire to accomplish,
but one step at a time is the most reliable approach. When you move
from $0/month to $1,000/month - and/or - $1,000/month to $10,000/month
you will know how much energy you will need to add to further
accelerate your profits to the next level.
Remember that the amount of energy and efforts required will depend on:
your income goal and your time goal. The more money you want to make in
the least period of time, the more energy required to realize the
project. This is pretty much common sense. Why do I tell you this then?
I tell you this for the following reasons. In my other articles I
explain the importance of setting up multiple streams of passive
income, which allow you to receive leveraged profits. In my opinion
this is a business approach that allows you to become financially free
in a less stressful way. You can also become rich almost completely
stress-free by investing some of your profits and compounding the
return from your investments to increase your wealth exponentially.
Without leverage it will be harder for you. Leverage is what allows you
to accelerate your profits with relatively the same amount of effort.
It works amazingly. It eliminates many of the troubles associated with
increasing your income exponentially.
This leads us to the following point on this article: Turn Key
Businesses. A turn key business is a business that already went through
the start up process (the hardest part), it is already generating
profits and/or the efforts required to start the business have already
being made for you.
You only need to turn the key. The energy invested on the business will
be used to keep it profitable, not to accelerate the income potential
unless you want to do so. This makes it easier. You don’t have to go
from zero to somewhere. Many of these businesses are already profitable
as I said before. Others are not generating revenues yet, but most, if
not all the work required to make them profitable have already being
done by someone else, not you!
These are usually businesses that someone else started, but for some
reason they don’t want to run anymore. They sell these businesses to
other smart people, who prefer to take over an existing business than
to start their own from scratch. Also some of these businesses
originate from people which main business is to sell turn key
businesses. They prepare everything, the market, the products, even the
customers; and sell everything to someone else to get the cash.
Why would somebody would go through the hardest part and not keep those
businesses to themselves? One of the reasons is that some people are
business starters. They like the adrenaline feeling experienced on the
process. They are risk takers. The other reason (most common) is that
many turn key businesses can be replicated.
They get experienced at it and they do it time after time. That’s their
main source of profits. Once they sell a business they start another
one and sell it too, and do the same thing again and again. Because
they are so experienced starting that particular kind of business it is
easier for them than for most people. Then other people (the buyers)
get the business once it is started/running and all they have to do is
to keep it profitable.
You can purchase a turn key business anywhere from $50 to several
millions. Believe it or not, some of the lowest priced are the most
effective ones. They have a high value increase potential also. If you
are into passive income, it is better to own those businesses with high
cash flow. These are businesses which require very small investment or
no investment at all and produce a lot of cash profits.
This takes us to the next point in this article: mass, tangible vs no
mass intangible. Remember what I said above that the mass is inversely
proportional to the energy required to move it. This means that more
massive objects require more energy to accelerate than less massive
objects.
If you have two massive bodies with different mass and apply the same
force to both, being all other conditions equal, the lighter body will
accelerate faster. I believe that exactly the same thing happens in
business. Let me explain.
If you want to make and sell airplanes, and I mean real airplanes here,
even if you have large amounts of funds to run that business, it will
be very hard for you to establish yourself in the marketplace. I am
just making an analysis here. If you are considering starting this
business or any other business and you are sure it will work, then give
it a try. It is your choice, your decision; but notice why I think this
way.
Airplanes are so big that they would require a huge space to be built.
You need to hire specialized employees, comply with any regulations,
etc. Now, let’s say that you make up our mind and decide to move to
less massive objects. You choose to sell automobiles, cars.
You want to be a dealer because cars are items that people really need
and you think you will always be in business, you will be profitable.
Soon you realize that this is still too heavy. You need space, which
will cost you money. You need to comply with many regulations, which
will take time. You need to deal with the customers.
Customers need to make a relatively large investment for you to realize
a profit. This leaves you in the situation that whether you deal with
the customers yourself or pay someone to do it. Either way you will
have to lose something to earn something. Also don’t forget about the
competition!
Do you start to see why most new businesses fail. Even if you get a
turn key business on these fields (you don’t start it from scratch),
you will soon find out how much energy is required just to keep them
moving.
Now, after a while, you change your mind again and you say: “I am going
to sell computers.” At this point we start to make some progress.
Computers are relatively small. They are versatile. They represent a
product people want and need. You can sell them over the Internet and
ship them via the postal service.
Then you start feeling more comfortable. You experience less hassles
and more profits. Anyway, after a while, you change your mind again.
This time you decide to purchase a factory and make parts or computer
chips. Nice! You start to feel rich.
After a while, you change your mind again and decide to sell software.
Then it hits you. You finally get the point. You get into intangible
products/services. You realize that after a program is developed, you
can reproduce it as many times as necessary. You can sell it over and
over again thousands of times. There is no mass. When there is no mass
you don’t need raw materials to make the products. You save yourself
many hassles.
These are the kind of turnkey businesses I am talking about. Software
is just an idea, there are many others. The hardest part would be to
create the product, in this case the software, but if someone make it
for you and sell you the right to resell it, all you will have to do is
to resell it. That’s it. No renting space, no dealing with employees,
no shipping and handling, nothing.
Don’t get me wrong, some tangible turn key businesses are very, very
profitable; but I prefer the intangible stuff. I think profits are
abundant in relatively low priced tangible turn key businesses.
I love this topic. I have more information about it on my website. I
can’t share everything in just one article. I guess I will have to stop
here and leave something for later. I hope this article have been
helpful to you.
As you can see these are just basic examples of how you can apply
scientific laws to your businesses and become more profitable. On this
article I shared information with you about inertia. You can learn
about other physical laws and their applications to wealth building
techniques from my other articles. |