“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
[Economies of Scale]