How to Increase Your Wealth By Integrating Personal Development and Entrepreneurial Mindset
Combining and Integrating Personal Development and the Entrepreneurial Mindset to Make Money.
Recently I was looking back into retrospect on the Industrial Revolution and how Technical Progress has revolutionized the world and increased production, brought about by the principles applied to achieve such great result. I continued to analyze the causes and effects resulted from these principles that propelled the founders to create and implemented these ideas.
NB: I must warn you that this post is a bit lengthy, but it well worth the effort to share this knowledge which is called a “Shared Vision” that will certainly motivate and inspire you.
Based on these principles, causes and effects, and ideas, I was highly motivated to write this post with the objective to highlight and exposed these principles which have been used for decades in the most successful and productive way, and as a result, brought increase in wealth creation.
[quote style=”boxed”]Adam smith one of the well known and renowned economists greatly contributed to the increase in production through his well accepted theory, “The Wealth of Nation.”[/quote]
This article focuses on applying the same principles into your business to achieve the same desired outcome of [ilink url=”http://www.yoursuccessstore.com?refid=creative&a_bid=ea219945″ style=”tick”]increasing your Wealth to achieve Success[/ilink]by coordinating and Integrating Personal Development and the Entrepreneurial Mindset into your every day business activities to increase and enhance your business consistently.”
How to Apply Combined Cooperative Effort to Increase Your Wealth
What is Combined Cooperate Effort?” One famous economist in his text book writing about Specialization of Trade and Labor, referred to “Vertical Integration” and “Horizontal integration” in order to achieve economies of scale pertaining to increase wealth production.
His objective was to show how a country or an industry can greatly benefit from comparative advantage by producing more goods or services than another country or another industry. He also focuses on Specialization and Vertical Integration, as the main factor and dynamic driving force to achieve comparative advantage. The objective was to earn more money over competitors by establishing Comparative edge and Advantage.
He states that “
[quote style=”boxed”]when people combined their efforts in a collaborative, cooperative manner to complete a task, more production will increase.” [/quote]
As a result he has chosen vertical integration to explain the concept as the best production model. If a country can produce one unit in exchange for 2 units from another country at the same cost, it means that country enjoys comparative advantage over the other country.
Horizontal Integration Vs Vertical Integration Defined and Explained
Horizontal integration is when people are engaged in the same stages of production. As a result, it will take each person the same amount of time to complete a task. Adam Smith, the economist who wrote the theory on Specialization Of Trade, used the pin making industry to clearly explain the disadvantages of horizontal integration vs. the advantages of vertical integration. He further suggested that
[quote style=”boxed”]if one person were to make a pin, it would take him almost one year to produce one pin, which would be uneconomical, because he would have to perform and complete (all the tasks) the following task:[/quote]
1. One Person “Obtains the wire”
2. The same Person “Straighten the wire.”
3. The same person “Cut the wire”
4. The same person ”Sharpen the point.”
5. The same person “Make the bend.”
6 The same person “Make the Pin Head.”
7. The same person “Attached the head.”
8. The same person “Immerse the pin in the silver liquid for coating.”
Comparing Vertical Integration and Personal Development
At this juncture, let me state that Personal development and Entrepreneurial Mindset can be compared to “Vertical Integration” to increase Wealth but will be explained below following this paragraph. Personal Development is crucial and imperative in order to be successful. You must take some to invest in your self through personal development that will prepare you to be able to become very dexterous at what you do, by performing the same task over and over. In essence you become highly skilled by specialization.
Like Vertical integration, Personal Development will equip and enable you with the tools you need. You will be able to perform your task almost flawlessly by repetition that will speed up your ability, your production, and increase your wealth. A quick look at Vertical Integration will explain the concepts.
[highlight]Vertical integration is when people are engaged in different stages of production. When people are engaged in different stages of production making a Pin, the following tasks are employed which speed up production, increase wealth, and therefore economies of scale is achieved. The same is true when you specialize in a particular “Niche,” You develop and expand your skills, your ability, professionalism, and your personal experience. [/highlight]
The Advantages of Specialization of and Division of Labor The Capstone for Success
1. One person obtains the wire
2. One person straightens the wire
3. One person cuts the wire.
4. One person sharpens the wire
5. One person makes the Ben
6. One person makes the head.
7. One person attaches the heads.
8. One Person dips the Pin in the silver liquid for coating.
[box]The lesson to learn here is, when a person specializes in a process by doing the same thing over and over, that person becomes very dexterous in performing that same task over and over without making any mistake. He can perform that task flawlessly with his eyes closed. Therefore, greater production will be achieved, and Out-Put will increase at a phenomenal rate as a result of each person’s contribution. Just to reiterate, although it takes One Year for a certain amount of people to Manufacture One Pin under “Horizontal Integration where people do not specialize, conversely, it will take the same amount of people who specialize to create one pin in “A Day” using the Vertical Integration concept and principle. This theory proves that specialization increases production resulting in iicreased wealth.[/box]
In order to be successful using this principle, you must grasp the concept, with an aim to achieve your goals and objective to succeed. You must play your part and contribute to the cause. If you contribute to and embrace the “Shared Vision,” you will certainly experience the increase in wealth, based on past proven results.