Till now we saw how money can be created physically and directly to be precise. By saving during a production process and by increasing the marketing of the product to establish a brand and then increase the selling price and earning profits in return. But these are minor to the fact that you still have to sell the product. And here is the real difference between all the rich people and ordinary people. How? Let’s see.
Assuming I am good at coding softwares. What if I make a software that asks you your name and then displays it across the screen and price it 50 rupees. Will you buy it? Ok I will hire a celebrity to advertise it and make a brand out of it. Will you still buy it? Well I created a product and I also created a brand .After that I will even optimize the way that software is made, bringing the production cost to almost zero. But if I am not able to sell it then I am not creating money. So the most important thing is to sell. In fact selling comes before production. From this statement I mean an entrepreneur (I am talking about entrepreneur because they create money through companies) should think that how I can sell a product before he must think that how he can produce it. This is one of the most common mistakes of entrepreneurship. Most of the times, people go for a field in which they are best or in which they have a technology that reduces the cost of production and then they find means of how to sell the product. But it should be opposite. First you must assume that you have made the product with your expertise and the best technology and on that assumption try to see as how you can sell that product. Don’t get me wrong, that doesn’t mean that you can’t go into the field in which you are good, but before that just see what you are selling and that means what other people are buying. That also means if other people are buying then explore the reason why would they buy your product.There are also few products which are needed for everyone’s survival. You can earn by producing/creating these products.Money 5 is dedicated to as how to see why someone would buy/use your product.
Assuming I am good at coding softwares. What if I make a software that asks you your name and then displays it across the screen and price it 50 rupees. Will you buy it? Ok I will hire a celebrity to advertise it and make a brand out of it. Will you still buy it? Well I created a product and I also created a brand .After that I will even optimize the way that software is made, bringing the production cost to almost zero. But if I am not able to sell it then I am not creating money. So the most important thing is to sell. In fact selling comes before production. From this statement I mean an entrepreneur (I am talking about entrepreneur because they create money through companies) should think that how I can sell a product before he must think that how he can produce it. This is one of the most common mistakes of entrepreneurship. Most of the times, people go for a field in which they are best or in which they have a technology that reduces the cost of production and then they find means of how to sell the product. But it should be opposite. First you must assume that you have made the product with your expertise and the best technology and on that assumption try to see as how you can sell that product. Don’t get me wrong, that doesn’t mean that you can’t go into the field in which you are good, but before that just see what you are selling and that means what other people are buying. That also means if other people are buying then explore the reason why would they buy your product.There are also few products which are needed for everyone’s survival. You can earn by producing/creating these products.Money 5 is dedicated to as how to see why someone would buy/use your product.
There is a more obscure way to create money. This many of us don’t know and don’t notice. It deals with non-physical concept of money. If you have read my Money 2 post there I mentioned that time is a non-physical incarnation of money.How? Now is the time to tell you how. We start with an example as usual. The best example is a Xerox Machine. Why do you think people buy or use Xerox and how it is different from my product that I told you about in the start? First similarity, (:D, I dared to compare these two but please stay with me) my product and Xerox don’t help people create/earn money directly. But Xerox does more than that. It saves a lot of time that otherwise will be wasted in typewriting all the documents that gets copied in secinds. Just try to think a world without Xerox machine and you will realize how Courts and Government offices will function. Their already low productivity will take further nosedive like a scuba diver. That is the value of Xerox. That’s how they sell their product and at the same time price their product more than what it takes them to produce. The difference it the created money and is the value of the Xerox technology that was created and the machine produced together. This created money is distributed to the patent holder of that machine (creator) and the company producing it (producer). More of this is there in Money 5 Blog.
If you are finding it difficult then just go through Money 2 to Money 4, consider it as one article and then you will be able to grasp the whole thing very easily.Then only go to next blog because next blog can be tough for unprepared. Thank you.
If you are finding it difficult then just go through Money 2 to Money 4, consider it as one article and then you will be able to grasp the whole thing very easily.Then only go to next blog because next blog can be tough for unprepared. Thank you.
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