Scientific wealth building secrets! - #5 - Inertia
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 . . .
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. EasyWebRiches © 2006
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