Law of Effection & Commandment of Need

[sean02116]

Hey everyone,

while re-reading MF, I thought of a simple equation that I think does a pretty good job of simplifying the law of effection's relation to wealth creation. Its Wealth = # of people effected x amount of effect on each person. I don't think I worded that in the best way, but you get the point.

The law of effection along with the commandment of need I think are the 2 most important things discussed in the MF, and they've helped me tremendously with the way I think about business and my business ideas. I know the other commandments and concepts mentioned are also valuable, but in my opinion those 2 are the most crucial. What do you think?

 

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[Jon822]

I would say Control is the most important for the following reason:
C(E+N+T+S)

Control represents the final multiplier of the sum of the other 4. The reason being is that if you create a business that has perfect scores in Entry, Need, Time, and Scale but you only own 10% of the business, then you are only rewarded 10% of its final value.

Another way of looking at this theoretically perfect ENTS business is that if an external person or company can wipe it out due to a lack of control, then they can plug C = 0 into the above equation and all of the other scores don't matter.

Mathematically speaking, it's more complicated than this but I think Control still carries the most weight and by a large margin.

 

[sean02116]

I would say Control is the most important for the following reason:
C(E+N+T+S)

Control represents the final multiplier of the sum of the other 4. The reason being is that if you create a business that has perfect scores in Entry, Need, Time, and Scale but you only own 10% of the business, then you are only rewarded 10% of its final value.

Another way of looking at this theoretically perfect ENTS business is that if an external person or company can wipe it out due to a lack of control, then they can plug C = 0 into the above equation and all of the other scores don't matter.

Mathematically speaking, it's more complicated than this but I think Control still carries the most weight and by a large margin.

Interesting. You have a good point. I guess I just think Need because regardless if you're in control or not, the business will not be successful long term without fulfilling the commandment of need.

 

[Jon822]

Interesting. You have a good point. I guess I just think Need because regardless if you're in control or not, the business will not be successful long term without fulfilling the commandment of need.

I would say art has a Need score of 0 but has plenty of successful businesses around it. I think Control = 0 is the only one than can effectively wipe out the business. In reality, my equation is probably an oversimplification anyway.

 

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