Tuesday, October 21, 2008

Increase Your Personal Economy of Scale

“As Long as you are going to be Thinking Anyway, THINK BIG.” Donald Trump

In the wonderful world of finance, economist refer to economies of scale as the point in which a company beings to grow larger thereby, decreasing the average cost per unit of items sold. The company experiences increase production and efficiency as the average cost per unit is lowered since fixed costs are shared over an increase number of goods. In other words: When goods and service can be produced at a larger scale with on average less input costs, economies of scale are achieved.

Economies of scale often allow companies to operate on a broader scale and expand the geographic territory of that company’s reach. Economies of scale also result in increased efficiency, as tasks are performed fast and with more quality. Henry Ford understood economies of scale. Henry Ford had a BIG vision for his company when he promised, “a motor car for the great multitude.” Mass production was introduced and you probably have a “motor car” or two in your garage as you read this.

The reason I bring up this economic principle is because it can be used in your personal life to your advantage or to your demise. Individuals who become “Bigger” than themselves sow the rewards of economies of scale directed toward them as an individual and reap the benefits of influence and wealth. Conversely, individuals who restrict themselves through self-limiting beliefs create a diseconomy of scale sowing the seeds of failure.

Let say Henry Ford had a bad year and he may lose over a million dollars. However, because of the economy of scale he setup within his corporation he is still a very rich man. Bad markets, economic fluctuations, and sheer misfortune do not discourage the individual who has economies of scale working for him!

I apply this to the world of business as finances, but the principle can be applied to any area of life. Persistently thinking BIG will allow you to grow in the direction of your choice. Let me give you a couple of examples of individuals who have used the economies of scale to generate a much “bigger” life.

A golfing friend of mine used to sell satellite dishes from a small office and do the installations himself. Times were tough; when the phone wasn’t ringing he was forced to work two jobs. This friend of mine started thinking BIG. Now he owns a call center that does satellite TV installations all over the nation.

Out of my cell phone store I sell holsters for various cell phones and tools. I started thinking “BIG” and created an economy of scale using the Internet. My website Ripoff Holsters Online now sells holsters from China to Switzerland.

Many very successful people are not necessarily more talented, skillful, or lucky than the next guy. However, their level of thinking allows them to soar the next level of achievement. By utilizing the law of economics and economies of scale individual can leverage themselves to levels of achievement beyond anything they ever dreamed possible.

Cool Photo by Babblingweed


Bob Johnson said...

Exactly Jesse, you have to think big, or outside the box, if you continue to do the same old same old your returns on whatever investment you have made will remain the same.

If you think of stuff might as well think of big stuff, what can it hurt?

Ruth said...

Hi, Jesse, it sounds as though you have figured out some successful strategies. I'm happy for you and your business!

Thank you so much for visiting synchronizing!

Sherer said...


Thank you sir - ah yes good point outside the box! I guess it could be a form of big.

I have heard of wildly successful businesses that started because someone dared to think differently, perhaps this will be my next post! Thanks bob.


Sherer said...


Thank you very much for coming by. And I will be back to read your site in the future.


John said...

This is good stuff. I'll be adding you to the blogs I follow!

Caroline said...

This is a GREAT post! You almost lost me on the first paragraph but I hung on...lol! I felt like I was in my MBA finance class for a moment!

This is where I stumble...thinking BIG. I love the quote by Trump...if you are already thinking...make it BIG. I need to take some time and do this. My battle is believing that I can do something BIG. You have given me lot's of food for thought on this one...

Sherer said...


Thank you for stopping by I really appreciate your comments.


Sherer said...


Boy I am sorry, I know it started slow, but I wanted to get somehow combine that universal economic law with a principle to help self growth. I think it worked.

Interesting stat I heard: CEO, Business Owners, and other high ranking officials face as much stress during their decision process as do those with occupations that face less dramatic decision consequenses.


Caroline said...


No apology necessary. This post is really sticking with me! As I said in my earlier comment...this is where I hit the proverbial "wall". I don't think big. For some reason...my mind can't grasp "big". This is something I need to really figure out...is it fear of success that my ego has created...or maybe, I am not supposed to be "big"? Do I want to be "big"? I think I do, but...oh geez, see what I mean!

I would love some input on this!

Sherer said...


I think your asking a question no one can ask for you. (with the exception of possible eckart, lol)

True, not everyones calling is to get "big". However, I would argue that we are all capable of remarkable things be it of different natures. A few things I can tell about you from the short time we have been - well - friends.

1. You seem to be spiritually adept and mature.

2. You have in a short period of time seem to attracted a solid reader base to a blog in which you post daily.

3. You have a particular connection to women.

4. You words are sympathetic and comforting.

Take the 4 qualities about yourself and make that bigger! I can see women from around the globe (and some guys too) growing from you "thinking big" and expanding these areas. Does that make sense to you? or am I totally off?

Caroline said...


All good points! Honestly, I am not one to boast...but the fact that my blog has a good following in such a short amount of time...is HUGE to me! So I guess it all comes down to our own definition of BIG. What is big to you may not be all the large to someone else...

Yeah, this is good...i'm getting it...slowly but surely...

Healingstones said...

Thought-provoking once again. Someone told me to 'think big' and set up a blog site to reach the world readership of the Internet... I guess they will find me?

BTW, I have to say that I don't like the name 'Ripoff' - has negative connotations (!)


You always put me in the positive thinking mood and I have renewed hope after reading your blog. Love your pic! I feel like I know you better so if we met on the street I could say hello.

Healingstones said...

Happy Halloween!!

Sherer said...

Healing stones! Happy Halloween!

I think you should. It seems your message is already spreading to the world. I am always surprised at the niche markets that can be found when you reach out to the entire world of billions of people.

And yes Ripoffs does sound negative! Who wants to buy a Ripoff! HAHA . I didnt come up with it. However, they have velcro straps which keep the holsters together (I have to explain that a lot).



Sherer said...


You had better say hello if you met me on the street! haha

Thank you for your comment it makes the blog worth-while.


Tide Turn said...

Came from Bob's - Great moon shot & look forward to browsing back through your posts.

Sherer said...

Tide Turn,

Thanks for stopping by! I love astronomy - and bob has the best blog out there for it. I appreciate your kind words.