The ability to endure suffering and the clever use of leverages
Two points shared by all those who have become rich on their own, i.e. they have not inherited their wealth.
The ability to endure pain is of prime importance since it has many consecutive virtues: not seeking immediate pleasure, endurance to provide the extra effort and hard work.
The first part represents the obligatory base from which one can build the forces that allow enrichment. The ability to endure suffering allows you to acquire sought-after skills that others will not be able to acquire because they lack your resilience and tenacity. When you have worked to acquire a sought-after skill, you can earn a good living, but your income progression remains linear. This explains why it is necessary to combine it with one or more levers to benefit from a multiplying effect which is listed below:
Two essential skills on the road to wealth
You entrust one or more third parties with a task that you can perform but is not part of the activities you want to focus on. This leverage allows an increase at a fixed multiplier coefficient, the value of which will depend on your efficiency in choosing the right person(s).
The competence lever
This involves entrusting a third party – usually an employee or subcontractor – to carry out work that you do not have the skills to do yourself. Acquiring this skill would be a poor investment of your time or even simply tedious. This lever allows you to have a fixed or variable (exponential) multiplier effect, depending on the place this skill occupies in your organization.
Marketing and communication leverage
The sale can be as simple as a video that you will have posted on a hosting site. It can be viewed billions of times without you needing to spend extra time getting in touch with these viewers. The same goes for an e-mail sent or a publication on a social network.
On the other hand, these resources give you a much better insight into your audience with advanced analytics.
Leverage your brand awareness
If you have a network or online presence, for example, this can have a multiplier effect on your sales of products or services. The relationship with your audience must be carefully cultivated, it will allow you to create trust that will facilitate your power of conviction.
The technological leverage
You can assign the execution of a job or a series of tasks to an application. This can save you the same amount of work and can allow you to automate to a greater extent. This is especially true in the age of AI, which allows companies to create empires that compete with more conventional companies that have not developed such an asset.
If you already have substantial capital, you can use it to invest wisely in assets that can provide you with income without the need for further leverage. Leverage can also be used to strengthen other levers. For example, instead of hiring one employee, you can hire two, or you can invest more in marketing campaigns.
Thus, your wealth could be defined around the following equation:
A: ability to endure suffering x delegation leverage x financial leverage x notoriety leverage x systemic leverage x marketing and communication leverage x software leverage x skills leverage
Of course, you will not be able to benefit from all the levers, it is indeed more frequent to find yourself in a situation where the person has a strong point to which one or two (rarely more) levers are combined.
Know your strengths, then decide on which multiplier effect(s) you will play in order to build up your capital as cleverly as possible.