Randy R Cox
The transformation of labor into money is a learned process. If you want to accumulate money, you must
apply your labor to the acquisition of wealth. Applying labor is an art rather than a science. Where you apply your labor determines the return you will receive. With the same expense of labor a fisherman can get more fish out of good water than he can in bad.
How you apply your labor also determines your return. You can push against a stone wall and wear yourself out and yet never move the wall. If you find a weak spot in the wall and apply a tool with leverage, then the wall may move. How you apply your labor is important.
acquire wealth efficiently doing all the work yourself. You must purchase the labor of those more efficient than you at a price that returns more than your expense.
Your labor should be distributed among the various labors in such a way as to make the cumulative cost of all labor (including your own) less than the price you will receive for your production.
This is the trick to making money. It is complex…but simple. If you are skilled in making the decisions of an entrepreneur, you will make money. If you make bad decisions, you will lose.
You must first labor to acquire capital savings. As your capital grows, you will have the means to purchase the labor of others more efficient than you. The division of labor allows the efficiency of your production to grow exponentially beyond your wildest imagination.
In the beginning, you can develop capital with little more than your own labor. As your capital grows, you can grow your production of wealth by purchasing the labor of others in areas where they are more efficient than you.
If you make a mistake and pay labor more than you can receive for that labor, then you will have to make up the loss in expense by adding even more of your own labor to the project or the next project to make up your loss.
Just as a pilot steadily adjusts his course toward his destination, so will the entrepreneur adjust his decisions and labor toward the end of making as much money as he can in the most efficient manner.
It is not a single action, but an ongoing process. Goals must be set, plans must be implemented and results observed. When the results are positive, they need be repeated and improved. When they are negative, they need to be adjusted to a more positive result.
The driver of an automobile constantly adjusts the steering wheel. A new driver makes a thousand decisions as he adjusts the wheel, but with experience instinct and skill take over. The decisions are still made but they are more sub-conscious than conscious, more instinctive and intuitive than decisive.
Just as we learn to drive a car, we must learn to apply labor, and later capital to the pursuit of money. It will become easier in time. The important thing is to take the first steps; get moving! The money will follow as our skills develop.
It doesn’t require genius. Plenty of wealthy people are dull witted. It requires perseverance and work.