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Simple Big Secret of Synergy

by rdbranson
2 replies
It's always been amazing to me how many solo entrepreneurs do not seem to know the Secret of Synergy, which is "organization" (plus additional advantages.)

Have you ever wondered what it is about jobs that works for people? When you have a job, other people in the organization are "working for you." You are paying them and they are paying you. The business organization is just a social innovation to transfer the benefits of everybody's work. There are other better ways to do that, but that is a whole other topic.

If the organization is successful, there is so much profit left, that even incompetent CEO's get paid several $100k's or even $millions.

You are not being paid just for your time. You are being paid to share your expertise and work with others. That's the real advantage of a "job."

What does that mean for solo entrepreneurs? Well, you better figure out how to make synergy work for you, or you will make it much tougher on yourself than need be.

I have my own ideas on what can be done to increase your synergy, but I am interested what you think or what experiences you have had?

RDB
#big #secret #simple #synergy
  • Profile picture of the author Jeff Sommers
    With a job I see it differently. With a job you may be working with other to create synergy,but it is all for the employer. You receive no extra benefit for the energy you put in unless there is some incentive scheme. A solo entrepreneur creates synergy by networking with other entrepreneurs and creating win/win situations as in JV ventures
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    • Profile picture of the author rdbranson
      Pretty much agree with you, Jeff, regarding where the profits go, but that's not really my main point, and we haven't even mentioned equity (stock) value, bearing in mind that many CEO's get much of their compensation from stock options.

      Solo entrepreneurs, even with networking, joint ventures and "partnering" most of the time do not have the organization in place, or build it, to have a strong presence in markets. In addition, many of them do not make the required investment into the partnering arrangement that will create such a presence.

      In the IM culture, partnering arrangements such as Jason Fladlien and Wilson Mattos have are quite rare, which is one reason that Fladlien now has a $5million+ company, and I don't know if they are in fact sharing equity. There are at least 5 million people, probably a lot more than that, competing in the solo entrepreneur IM area. Compared to that number, I would be surprised if there are 5,000 duos doing cost- and revenue- sharing partnering, just as a very small beginning for working together.

      Most JV's are simply, "I'll recommend your product to my list, and I get a commission arrangements." WarriorPlus and JVZoo are examples of adding a level of organization to make the arrangements more efficient. That's the beginning of what I am talking about, but how are revenues and profits shared there?

      One example, I point to as to what "it takes," are the keiretsus. When the samurai lost their jobs, partly because of their clan background, IMO, those who went into business set up partnering organizations that today are among the world's largest combines.

      That's more along the lines of what I believe it takes if you want to have a strong presence in a market.
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