Scientific wealth building secrets! - #4 - Synergism
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 synergism. This is a scientific concept that can be applied to business. Synergism is the interaction between two or more things that produces an effect greater than the sum of their independent effects separately. An example of synergism would be 1 + 1 = 5. Let me explain this. Everyone knows that 1 + 1 = 2, but I do not intend to refer to numerical values above. I refer to the effects resulting from combining two or more agents compared to the effects of those agents alone. Let’s take for example gold. This precious metal is malleable and ductile, which means that it is very useful. It is shiny, unique, beautiful and very resistive to corrosion. Since ancient times it has being a symbol of wealth and prosperity. It has being a mean of exchange for most civilizations. Pure gold has a defect though, it is too soft. Now, let’s analyze copper and silver. These metals are harder than gold but they are less attractive and less resistive to corrosion. Both tarnish relatively fast. Silver and gold are much cheaper than gold too because they are more abundant in nature. Then, what happens when you melt silver, copper and gold together? You get an alloy. You get an alloy that is virtually as resistive to corrosion as pure gold itself and it is hard too. Then you can make coins and jewelry with this alloy. By “mixing up” those elements you get a new substance which is very useful and long lasting. The resulting effect is bigger than the effect of the metals separately. We can apply this concept to business in at least two ways. The first one is as follows . . . There is a limited amount of matter/energy in the world. If we are going to compete to get larger and larger slices of this fixed quantities of raw materials for ourselves, then we will be competing for wealth, which is hard. It is hard because that’s what most people do anyway. If on the other hand, we strive to discover new ways of doing things, then we will create wealth, which is easier, because that’s something that fewer people do. For example, everybody is fighting for oil and someone suddenly discovers how to get electricity from water. This hypothetical person creates a machine that turns one gallon of water into the same quantity of mechanical work a gallon of gasoline would. Then this person becomes very rich without having to compete with anybody. In fact the opposite will happen. Other people will try to compete with him/her and steal his idea. How do you get rid off competition? You can’t. Humans are very competitive beings. Even if you get a patent, other people will try to design around your idea. They may even outrightly steal it and leave you in the position of whether you take legal action against them or not. Believe me, if your stuff is profitable, others will try to sell it too. Due to entropy, there is a high possibility that your innovations won’t be profitable forever. Your profits may decrease with time. The solution is to keep creating and innovating. You may think that this doesn’t have to do much with synergism, but it does. The idea is not to compete for the limited substances and resources that exist in our closed ecosystem (the Earth). This is what most people instinctively do. The idea is to find ways to mix substances differently, so you can add more value with less efforts. You may not be able to create a more effective way to generate electricity. You may not be an inventor, but you can apply the concept of synergism to your business. It doesn’t matter what you do for a living, the idea is the same for everyone. For example, let’s talk about a real estate investor. This investor used to compete on the foreclosure auctions to get the properties at a reasonable discount. It was frustrating. Many people were doing the same thing. The properties usually had encumbrances and problems which made it hard to profit from the deals. One day he realized that he could make more money building the houses instead of fighting for them. He started purchasing land and hiring home custom builders to build the houses for him. He found out that the properties appreciated in value a lot since construction began until construction ended. This new approach worked for him and he made a lot of money. Understand that this is the main principle behind capitalism. The idea is to get rich by enriching others. Instead of competing for what already exists, find ways to create new things. Many people have become rich by turning something that no one wants into something very useful. You can create wealth. One of the ways you can definitely do it is by combining two things which produce a bigger effect combined than the effect they produce alone. Now, there is another way you can apply the concept of synergism to your business. That’s through partnerships. Two or more people can produce a much bigger effect if they get together than the effect they would produce alone. For example, let’s say that you want to start a business and you have a lot of knowledge about certain field and some free time also, but you don’t have the money. Then someone else have the funds but lacks the knowledge about that field and is busier than your are. You may form a partnership and work together on the project. By combining your resources you can make the project possible. If you would try to do it separately it would be very hard or almost impossible for each one. This is very common in business. Amazing things can happen when people combine their energy and efforts. As you can see synergism not only apply to things, but also to people. 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 synergism. You can learn about other physical laws and their applications to wealth building techniques from my other articles. EasyWebRiches © 2006
Learn to be Rich Articles
Learn to be Rich Books