Friday, January 4, 2008

Money 5

Now we will tackle the concept of creation and production. Both are neccessary to create money.It is easy to grasp, just read it carefully.
Lets start:--
Which product to produce/create that can be sold successfully and thus create money?

Read this slowly and watch for create and produce words. Only these words differentiate these various categories.

1) Produce something that people buy. What people buy: food & drinks, house, clothes? This is what Farmers, Real estate companies, Normal T-shirt Company (not Nike, they create clothes) do.

2) Create something that people buy. Example: Entertainment (Movies, Video Games, Internet stuff etc), Art, Recipes etc. Notice the difference between produce and create. Entertainment is created. Movies and video games have a story, direction, art… and do not grow on land from where it can be picked up and packaged like food grains. Coca Cola created the soft drink recipe. Nike creates styles in clothing and not just clothes.

Just ignore the “creates money for entity” in the following categories, it is there to assure you that in all these categories companies and individuals generate profits. These categories end up making one of the above products.

1) Produce to Produce: - Produce products that are involved in production of a product that “creates money for its entity”. Confusing statement? Look at the example then revisit the previous statement. Example, you can produce bottles for Coca Cola Company which in turn sells Coca Cola drink to people like us. You get profit by selling it to Coca Cola which needs bottle to market the product and thus buys it from you. Another one, produce cement, that is used to build houses, which is sold to consumers.

2) Create to produce:- Create products that will be involved in production of a product that “creates money for its entity”. Example- 3M invented sandpaper, used in polishing industry. Inventions are amalgamation of creation and production. Inventor uses his imagination to create something which didn’t exist before with things that existed. That’s creation. The patent of a product deals with the creation part(thats what this category's Create is about) and manufacturing of that product is production(thats what this category's Produce is about). So when I say Diesel engine is produced and not created whereas Diesel Engine blueprint/technology, that was patented, was created then I am right. Savvy. But remember, in this category, to create money you need to create for the purpose to produce. You can't keep a patent and create money without producing the real engine. Many important industries of previous era started under this category. Best example is Thomas Alva Edison’s General Electric.

3) Produce to Create:- Produce products that will be involved in creation of a product that “creates money for its entity”. Example: Maya software is produced (through CDs and packaged well) for sole purpose of creating animation. Thus used in special effects and animation in movies. Similarly, Pastels and water colors are produced to create Art.

4) Create to Create: - Create products that are involved in creation of a product that “creates money for its entity”. Example: Creator of Maya software created Maya for the movie animation. He must be taking royalty and sipping Pina Colada in his posh home. Maya was created and not produced like a bag of cement. You see the difference.

In this category these product saves time in producing/creating the final product which gives your profit?

5) Produce to Produce: - Produce a product which saves time (in other words produces time) in producing a product that “creates money for its entity”. Confusing? Like: a company starts to manufacture a machine that takes less time to produce same kind of T-Shirt than the previous machine.

6) Create to Produce: - Create a product which saves time (in other words produces time) while producing a product that “creates money for its entity”. Same as the above but notice produce is changed to create. Like: Create a blueprint of machine in the above example. That is what happens in patenting world.

7) Produce to Create: - Produce a product which saves time (in other words produces time) in creating a product that “creates money for its entity”.

8) Create to Create: - Create a product which saves time (in other words produces time) while creating a product that “creates money for its entity”. Now both produce & production is changed to create & creation. Example: Now this is what I am going to discuss in detail because both the companies that have changed our normal lives most exist in this category. Microsoft and Google. How? They both have products that were created. No doubt about it. Windows and Google search engine. What’s unique about them is they invariably produce time/save time in every field in which creation in involved. Example: Writer creates a masterpiece and google is there to save time. Microsoft word and Windows further saves time for them by editing their work. You want to make animation movie, try doing it without Windows and Google. You want to make games, again try doing that without Windows and google. Almost every field that wants to create something needs them. Where computers have come, Windows and Google come with them.

Go to Money 6 or
Money

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