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To achieve scale, magnitude or reach must increase. Magnitude is naturally increased with price or cost.
Higher prices and costs implicitly drive magnitude.
Reach, exclusive of magnitude also achieves scale. Reach is massive numbers. The more people you reach, the greater the scale potential. Who does your business serve? The local neighborhood? Or the world? The bigger your pool of play, the bigger your potential for wealth.
Can the profit of this business scale limitlessly, say, from $2,000 per month to $200,000? Can the asset value of this business scale asymmetrically into the millions? Can this business impact thousands, or better, millions of lives? Or does it impact hundreds? Is its customer pool the world or a small community in the city? Can this business be replicated and expanded beyond the local trading area by franchising, chaining, or additional units?
Best-case scenario, what is the unit-sold potential? One hundred or one hundred million? Best-case scenario, how pliable is unit profit? Does it have magnitude?
Tiny habitats create tiny wealth. Scale is large numbers. Think big, nationally and globally. Big numbers, or scale, is the inroad to The Law of Effection. To make millions, you must affect millions.
Law of Effection Barricades
Three barricades prevent entrepreneurs from realizing the Law of Effection: Scale, Magnitude, and Source.
Effection’s strongest barricade is scale. If you can’t serve millions, yo...
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The other barricade to Effection is Magnitude.
Unit profit cannot be manipulated. Every sale won’t generate a profit greater than a few bucks, and raising prices reduces units sold. A $100,000 profit on each coffee sold is impossible. While direct access to the Law of Effection is a foolproof road to wealth, indirect access isn’t so clear since Effection always trickles up to owners and producers,
What are your maximum units sold and maximum profit per unit?
What is the size of your customer pool?
Thou shalt not invest in a needless business. Thou shalt not trade time for money. Thou shalt not operate on a limited scale. Thou shalt not relinquish control. Thou shalt not let a business startup be an event over the process.
The three Interstates are:
Internet Innovation Intentional Iteration
A web-based business is the most potent interstate.
Internet business models (roads) fall into seven broad categories:
Subscription-based
Content-based
Content-based models are online news magazines and blogs that disseminate information to a particular niche or industry.
Lead generation services often provide a service to consumers while simultaneously aggregating a non-homogeneous industry.
The consumer desires to save time and money, and 2) The business owner’s need to find new customers inexpensively.
Social Networks / Communities / Forums
Community building is a cousin of con...
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Brokerage / Marketplace Systems
Brokers and marketplace systems bring buyers and sellers together and facilitate transactions.
Like brokerages, advertisers merge buyers and sellers and accept advertising fees in place of transaction fees.
E-commerce is the act of selling goods, services, and information over the Internet.
The Fastlane variables of net profit and asset value have a virtually limitless upside.
Innovation is another broad stroke of Fastlane purity and encompasses many roads. It is the good old-fashioned way to get rich: Invent a product, service, or piece of information, manufacture it, and distribute it.
Innovation is a dual-challenged process: manufacture and distribution.
Inventing a product that solves a need is half the battle. The other half is getting your invention into the hands of millions, which involves a variety of distribution channels: infomercial (sell via mass media), retail (sell to distributors and wholesalers), and direct marketing (sell via print media, postal mail, Internet).
A great product is worthless if it doesn’t get into the hands of people, and that requires distribution.
Writing a book is not a business; selling the book
“the means or act of repeating a process, usually with the aim of approaching a desired goal or target or result.”
Value skew is anything your business does better than the competition AND is discernible by your target audience, causing them to buy. Value skew is a solution to an inconvenience. Value skew is a simplification. Value skew is a feeling of excitement, comfort, or prestige. Value skew is better service, better ingredients, or a better label or user interface. Value skew is not being a big-tech bully who censors anyone they disagree with. Value skew is having a noble purpose behind your company.
You’ve got a great idea, but someone is already doing it? So what. Do it better. Find value attributes and skew them favorably. Do it better than the existing company.
“Competition is everywhere. Just do it and do it better.”
Successful businesses rarely evolve from some legendary idea. Nope, successful entrepreneurs take existing concepts and improve them through value skew.
Skip the big idea and go for the big execution of more value skew.
Here are the most common phrases: “I hate or this sucks . . .”
“I don’t like . . .”
“This frustrates me . . .”
“Why is this like this?”
“Do I have to?”
“I wish there was . . .”
“I’m tired of . . .”
Opportunity is dressed in predictable code words that spotlight its presence.
Moral: Solve other people’s problems, and you will solve your own money problems!
