Benjamin Franklin once said that “a Penny Saved is a Penny Earned” and I have to totally agree with him on that. But how can one person make lots of money if he thinks of just a penny? I’ll tell you how.
Here are the simple steps:
- Think of any idea that can make you earn a penny in per piece net income.
- Consider the amount of time that you will need to consume in order to make that penny. We will call this selling time.
- Consider the amount of time that you plan to work on a daily basis. 8 hours / day is a good start. We will call this work time.
- Divide your work time by the production time and multiply the quotient by $0.01 (one cent). We will call the result daily net income.
Ok, I’ve made overly simple but that’s because I just want to show you my point. Most agree that giving examples is a good so I’ll give you one.
The story…
Jake sells candies. He buys the candies at $0.01 / piece and sells them at $0.02 giving him a net income of $0.01. Jake decides to choose a spot with lots of children so he can sell the candies faster. Let’s say that Jake sells one candy every 5 minutes and Jake works 8 hours / day.
The math…
Our formula is
(Work Time / Selling Time) x Per Piece Net Income = Daily Net Income
which becomes
(8 hours / 5 minutes) x $0.01 = Daily Net Income
We convert 8 hours to minutes for easier computation. 8 hours is 480 minutes
(480 minutes / 5 minutes) x $0.01 = Daily Net Income
96 x $0.01 = $0.96
I had to be joking right? A Daily Net Income of $0.96!!! You can earn a lot more cleaning someone else’s lawn! True. But business starts this way. Every true businessman considers every penny he earns. Furthermore, it doesn’t end there.
The magic 5th step…
By adding a 5th step to the other 4 already outlined above, we will see how things can easily get bigger. Assuming that Jake is a true businessman, he then thinks of ways to multiply his $0.96 so that he can make $96 / day. In other words, he has to multiply his daily net income by 100!
In other words, step #5 is MULTIPLY.
The typical person will just resort to the ‘work harder’ mentality but I have to be honest with you. In a business, that just doesn’t work. Remember this, business is about working less and making more money. If I will just end up working harder in a business, then I’d rather be someone else’s employee.
Jake thinks and comes up with the idea of making use of a vending machine. That way, he can cover more area without having to worry much about manpower. And so, one at a time, Jake invests on vending machines and eventually reaches his 100th vending machine but he doesn’t stop there. He purchases more vending machines and eventually ends up covering all the nearby states with his vending machines.
Reality…
Now, reality isn’t that easy. In real life, Jake will also encounter headaches and problems such as the maintenance of his vending machines and other things such as theft but that’s business. It is also worth mentioning that there is a solution to every problem and so if Jake is wise, he will come up with good solutions to his problems ending up earning more and working less.
Recommendation…
When someone asks me for recommendation and ideas, all I say is “THINK OUTSIDE OF THE BOX.” New and bright ideas are born that way. Don’t stop with candies. Think of something else. Think of something better.
Also, I suggest that you read the books listed below. The books’ author’s ideas about business and their life stories are simply priceless in helping me out.
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