The poor are poor, the rich are rich

Chapter 9 4 Skillful use of leverage to make the pulley effect in wealth a reality
Chapter 24 Use leverage skillfully to make the pulley effect in wealth a reality
In 287 BC, Archimedes (287-212 BC) was born in the ancient city of Syracuse in Sicily in the Mediterranean Sea. His father was an astronomer. Under the influence of his father, Archimedes loved learning and was good at thinking since he was a child. love to debate.After growing up, he traveled across the ocean to study in Alexandria, Egypt.He learned philosophy, mathematics, astronomy, physics and other knowledge from Cornon, a student of the famous scientist Euclid at that time, and finally mastered the rich Greek cultural heritage through the past and the present.The achievement of Archimedes' life is nothing more than his "pulley effect".

Once, Archimedes said to the king of Syracuse: "If you give me a place to stand, I will move the earth!" Such a big estuary, so I said to him: "Okay, then show me a show. There is a big ship over there. You can use whatever tools and machinery you want. You are the only one who can push this ship into the water." !"

Archimedes asked craftsmen to install a set of exquisitely designed pulleys and levers on the front, rear, left, and right sides of the ship.And asked the king to pull a rope, and saw the boat move slowly, and finally moved into the sea.The people on the shore cheered when they saw this scene.For this reason, the king admired Archimedes' talents very much, and announced in public: "From now on, I ask everyone to believe in Archimedes no matter what he says!"

In the story, Archimedes uses the pulley effect.He propelled large ships by devising a system of levers and pulleys.The pulley effect tells us that with some "tools" around us, we can complete unimaginable problems.

So, how can we use leverage in business to obtain greater wealth and make the pulley effect a reality?Businessmen have been experimenting with this for centuries, trying to use leverage to generate greater productivity and more profit, to work smarter instead of harder, to spend less time earning more money.

After practice, they found that hiring employees is the best way. Now almost all large enterprises—from Ford Motor to Sony—are started by an entrepreneur, and they leverage his time and intelligence through employees.

Although Ford is very talented, he can only build one car a year at most with his own strength, and his income is at most tens to hundreds of thousands. However, by teaching employees to copy his system, he can leverage his time and wisdom.Using the power of the lever of people, such as workers, engineers and technicians, he makes thousands of cars every year, and he uses people—salesmen, so that the cars he produces can be sold all over the world.In this way, Ford became the richest man in history.

Let's take another look at how Mike, a car salesman, used leverage to "grow" his time exponentially.

A veteran in car sales, Mike has been in the business for almost 20 years. For 20 years, he has sold an average of 60 cars a year.No matter how hard Mike tried, he could only sell one car a week due to the limited number of cars he could show customers each day.After careful consideration, Mike decided to start a small company.

After the establishment of the company, Mike recruited a total of 40 top car salesmen, each of whom can sell 60 cars a year.This means that Mike's company sells 2400 cars a year.

Now, let's look at what leverage does to Mike.With his own strength, Mike can sell 60 cars a year. Through the leverage of the company, Mike sold 2400 cars, and the efficiency is 40 times that of before, which means that Mike has 40 times the time before. This is what "doing more with less" means.

It can be seen that hiring employees is the best leverage in business. By leveraging the time and wisdom of employees, we can get more money.When a typical worker trades time for money, his income only grows with a linear equation, i.e. one unit of time equals one unit of money, and the boss leverages his time and energy through his employees .He doesn't make money by his own efforts alone, but earns a certain percentage of the value created by each employee. This is also the American oil king Paul?What Getty said: "I'd rather earn 100% of 1 people than earn 100% of myself."

It can be seen that the real wealth creation avoids the trap of "time for money" due to the intervention of a concept called "leverage".The only way to create real wealth is "leverage" - your time, money and energy. Therefore, in order to obtain more wealth, you must know how to use the power of leverage skillfully, borrowing other people's time and wisdom to work for yourself, so that Let the pulley effect in wealth succeed in reality.

(End of this chapter)