🚀 The 7 Magnificent of Leverage: 🎆 Multiply your influence: Your life / mindset / business & money with these 7 factors:
[TL;DR] expansion writing from Naval Ravikant, Indian investor, Cofounder of AngelList company that was once valued at 4 billion dollars / Popular writer on Twitter / Writes about lessons on finance, investing & life management
📌 Naval come up with 4 types of leverage factors, which I have increased to 7 leverage factors because I think they are valuable and can be used to develop further. For everyone who wants to #progress in life:
👉 1. CAPITAL
👉 2. MEDIA / CONTENT
👉 3. CODE
👉 4. LABOR / PEOPLE
👉 5. SYSTEM / SOP / CHECKLIST
👉 6. BRANDING
👉 7. ECOSYSTEM & COLLABORATION
Note: This article is not related to the Magnificent 7 stocks in any way.
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👉 1. CAPITAL
“Show me the incentive and I'll show you the outcome” - Charlie Munger's or Uncle Charlie said, show me the incentive (money) and I will show you the outcome.
Money comes in many forms, whether it's in the form of general finance, cash / debt that generates income, or as capital in the form of shares / capital from others.
If the annual borrowing rate is around 3% per year and you think you can outperform (beat the market) at a return of 5-10%, why don't you try borrowing? (But of course, there is a risk. If you don't do it right, it will be even worse because the principal is lost and the interest cannot be paid.)
👉 2. MEDIA / CONTENT
In today's digital world, it is undeniable that "media" is important, multiplies results, both in the form of being famous and good and in the bad way. From the advent of Social Media that can communicate with anyone, any number, and has no limits in creating
In the form of writing, images, videos that we create once, people will see ten thousand times, a million times. No matter what country in the world you are from, you can see it (if you can read/listen).
But in the world of Information that is overwhelming and almost free (except for the time we use to create), we see too much. The competition is also very high. And most content tends to have a short lifespan, so it must be changed to make people want to consume it all the time.
👉 3. CODE
Order AI to work for you. Code is what makes our commands. Write once and you can let the machine work for us all the time.
Code, from Naval Ravikant's perspective, is considered the most powerful level of Leverage. You have a computer and you don't have to ask for permission from anyone. You can create it.
Summarize the plan like a personal secretary? Plan a trip and business for me? Summarize sales, profits, expenses of each section and see what are the expensive costs and what can we reduce/increase to improve sales results? These may only be the beginning.
Including creating a code that automates the connection of EV cars / reduce time, waste, inertia, product production and increase other efficiency such as checking for foreign objects or cars that can drive themselves.
👉 4. LABOR / PEOPLE
Decentralizing or distributing power to others allows you to do other things instead that are more valuable and rewarding.
Including whether it is brain power / physical power that you are not good at, you can give it to people who can do it at a cheaper wage than yourself.
Having the power to hire other workers may also be followed by complications, such as having to manage people, control crowds, must have leadership skills, etc.
👉 5. SYSTEM / SOP (Standard Operating Procedure) / CHECKLIST
System / Operating standards / Checklist ... To be able to scale and multiply your business If you have all the first 4 processes from Naval's writing, have a clear system and be ready to expand the base.
Create standards / efficiency / reduce errors / orderliness / clear processes and do not omit.
Have a clear purpose, steps of operation, responsible persons, scope of work and expected results. All of these make 80% of the work 99.99% more perfect.
👉 6. BRANDING
Brand means (identity) recognition of the image of the company / organization that will be consistent in conveying the value of the product / product / service that customers are confident that when they use the product / product / service, they will be as confident as before.
This is the reason why Starbucks is still the first choice for people who are looking for a coffee shop to chill all day. Apple devices that if you have 1 piece, you must have it all, no matter how expensive it is. Or social media apps that we can't think much about because we have been attached to for a long time. Both friends are there. Or trust us to get these fun things, such as on Facebook / Twitter / Instagram
👉 7. ECOSYSTEM & COLLABORATION
"If you want to walk fast, walk alone. But if you want to walk far, walk together," If you want to walk fast, walk alone. But if you want to walk far, walk with many people - Ratan Tata
The power of Power Ranger that must unite to destroy the villainous cartoon enemy since childhood is real (10 feet are better than 2 feet). Gathering the power of each person/business, bring the strengths of each party, unite the power to reach the goal that is beyond the reach of just one person, including multiplying the credibility, trustworthiness of each person/business to reach the end goal that is set together.
However ... in walking together, there may be conflicts, effort, seizing benefits and benefits that may have to be discussed, agreed upon and signed together to have a framework, responsible persons, results and goals that are clear for all parties.
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