Business and Finance

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The most surprising feature of business as it was conducted was the large attention given to finance and the small attention to service. That seemed to me to be reversing the natural process which is that the money should come as the result of work and not before the work.

My idea was then and still is that if a man did his work well, the price he would get for that work, the profits and all financial matters, would care for themselves and that a business ought to start small and build itself up and out of its earnings. If there are no earnings then is a signal to the owner that he is wasting his time and does not belong in that business.

Money is not worth a particular amount. As money it is not worth anything, for it will do nothing of itself. The only use of money is to buy tools to work with or the product of tools. Therefore money is worth what it will help you to produce or buy and no more. If a man thinks that his money will urn 5 per cent, or 6 per cent, he ought to place it where h can get that return, but money placed in a business is not a charge on the business – or, rather, should not be. It ceased to be money and become, an engine of production, and it is therefore worth what it produces – and not a fixed sum according to some scale that has no bearing upon the particular business in which the money has been placed. Any return should come after it has produced, not before.

I determined absolutely that never would I join a company in which finance came before the work or in which bankers or financiers had a part. And further that, if there were no way to get started in the kind of business that I thought could be managed in the interest of the public, then I simply would not get started at all. For my own short experience, together with what I saw going on around me, was quite enough proof that business as a mere money-making game was not worth giving much thought to and was distinctly no place for a man who wanted to accomplish anything. Also it did not seem to me to be the way to make money. I have yet to have it demonstrated that it is the way. For the only foundation of real business is service.

Henry Ford

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Simplicity

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My effort is in the direction of simplicity. People in general have so little and it costs so much to buy even the barest necessities because nearly everything that we make is much more complex that it needs to be. 

Real simplicity means that which gives the very best service and is the most convenient in use. 

As we cut out useless parts and simplify necessary ones we also cut down the cost of making. This is simple logic, but oddly enough the ordinary process starts with a cheapening of the manufacturing instead of with a simplify of the article.

Henry Ford

Expand Your Reality

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Rich dad had the ability to continually change, control, and expand his reality. And because he could continually expand his reality, he become richer and richer while working less and less.

My poor dad, on the other hand, chose to live within his reality.

If you want to retire young and retire rich, you may need to change and expand your reality and make expanding and changing your reality a habit. 

One way rich dad had his son and me expand our realities was through reading biographies of people who lived the lives we wanted to live. For example, rich dad had us read the biographies of John D. Rockfeller and Henry Ford. More recently, I have read books by or about Bill Gates, Richard Branson, Steve Jobs, and others.

Robert T. Kiyosaki

Magnets

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Powder steel on magnet (Photo credit: Wikipedia)

Henry Ford is a success, because he understands, and applies the principles of success. One of these is DESIRE: knowing what one wants.

Our brains become magnetized with the dominating thoughts which we hold in our minds, and, by means with which no man is familiar, these “magnets” attract to us the forces, the people, the circumstances with the nature of our dominating thoughts. 

Napoleon Hill