It’s believed there’s a correlation between wealth building, and the Laws of the Universe. These concepts are observed because the laws of nature, will always follow a certain pattern. These universal laws, are also constantly present in everything we do.
Everything that’s physical in our life, complies to and are influenced by these natural laws.
As a result, these forces can be applied to your personal finances or business as well. The scientific law that applies is synergism.
Synergism is defined as the interaction between two or more entities, which produces an effect that’s greater than if the entities were separate.
An example would be 1 + 1 = 5. But wait, you say! The math doesn’t add up, we know 1 + 1 = 2.
It’s not about the numerical values, but more of combining the effects of two or more entities, which becomes stronger once merged.
How Synergy Can Be Used
For instance, let’s take gold. This precious metal is ductile and malleable, which means it’s extremely useful and valuable. It’s shiny, rare, and resistant to corrosion.
For centuries, gold has been a symbol of prosperity and wealth. War and love have been fought and lost over gold.
It’s been used as a means of exchange in ancient civilizations. Pure gold however has one defect, and it’s too soft a metal.
There are other less valuable metals such as copper and silver. They’re harder than gold, but are not as attractive while being not as valuable or precious.
They’re also less resistant to corrosion, as both will tarnish relatively quickly.
The metals are cheaper than gold, because they’re more abundantly found in nature.
How Synergy Increases Value
What happens once you melt silver or copper with gold, is you produce an alloy, which increases the value or usage of all three metals.
What you get is an alloy which becomes resistant to corrosion, while making the main ingredient gold, harder and more durable to the elements.
You can then make jewellery or coins with this new alloy, making the end product extremely useful, more valuable and longer lasting.
What this results in, is the alloy becomes more valuable than the metals separately. This is synergy.
Synergy As Applied To Industry
There’s a limited amount of energy or matter in the world, and we all compete for it.
We compete to get bigger slices of the fixed quantities of these raw materials, as we all compete for the same piece of the pie, which lowers its value.
But once you decide to create new ways of doing business, then what you’re doing is creating new wealth, which is easier since no one else is doing it.
For instance, while everyone is fighting for oil, someone hypothetically invents how to create gasoline from water, or builds an electric car.
This hypothetical person is able to turn one litre of water, into the same quantity of a substance, that a litre of gasoline is.
This person then becomes extremely wealthy, without needing to compete with anyone else.
The Cost Of Competition
Then their rivals step in, as they’ll attempt to compete with them, attempt to replicate or steal their idea. So how can you get rid or avoid this competition, well you can’t.
Mankind has always been competitive with one another. Even if there’s patent protection, the competition will attempt to design around the idea.
Some will just outright steal it, leaving the originator in the position to take legal action.
If you have something that’s profitable, others will always try to duplicate or sell it, which increases competition while lowering profits.
So What About Synergism
You’re thinking this isn’t synergism, but it is. The idea isn’t competing for the limited resources and substances which exists in our closed ecosystem.
The idea is finding different ways of mixing substances differently, so you’ll be adding more value with less effort.
Most likely, you won’t find new better more effective ways of generating gasoline or electricity.
You’re most likely not an inventor, but you can apply the same concept of synergism into your business.
Thinking Out Of The Box
For instance, if you invest in real estate, you most likely compete at the foreclosure auctions to get properties at reasonable prices.
This becomes frustrating however, as every other investor is doing the exact same thing.
The housing properties also has encumbrances and issues, which makes it harder to profit from the deals.
Then one day, you the investor realizes it’s more profitable to build houses, instead of competing for them. So you purchase land, hire builders to build the houses for you.
You also know the properties will appreciate in value while during construction. What you’ve found is a new way of making money.
This is the main principle behind synergy, applied to capitalism. The idea is getting rich by getting creative while helping others.
Instead of competing, you find different ways of creating new better things. A lot of people have become rich, by turning something no one wants into something that’s useful.
The Application Of Synergism In Your Business
There’s another way you can apply synergism into your business, and that’s through partnerships or joint ventures.
Two or more people can usually produce a bigger effect once they’ve combined forces, more than what they could produce alone.
For instance, you’re wanting to start a new business, you have expertise in a certain field, but you don’t have the capital.
You find someone who has the funds, but lacks the knowledge that you have, or they don’t have the time.
You can then form a partnership, work together on the new business. Once combining your resources, you can both make the project possible.
Doing it separately would be impossible for either one of you, but possible when working together.
This is a common scenario when starting a new business. Synergy happens once people combine their efforts and energy together.
You can apply certain scientific laws and use them in your business immediately. You can apply synergy to combine one or more forces, to create a greater entity.