Leverage and scale

There is quote by someone that says ” I’d rather have 1% effort of 100 men than 100% of my owner effort” I am not sure who says it. I think is either J Paul Getty or John D Rockefeller, one these two said it.

The point is that you can look at leverage and scale as a business or investment.

From a business point of view, you can either do 100% of work yourself. Which is not recommended.

Or you can use leverage meaning other people’s time and money.

Simple example

Imagine that you have 5000 people working for you and you pay them $100 per day. Imagine that each person effort earn you 101 per day. It means that you earn $1 profit from each person. Since you have 5000 people working for you, then you earn $5000 profit per day.

Since most people in 9-5 job work 5 per weeks, 52 weeks per year. Then that’s 5000x5x52 = $1,300,000 per year profit. Remember profit = total revenue – total expenses.

This is just counting $1 dollar profit per person.

That’s the power of leverage and scalability.

That’s it.

Take a calculated risk.

Now, start and adjust as you go.