One of my goals on this blog and my radio show, About Money, is to help you be informed about what’s happening in the market. I want you to make decisions based on facts not stories. I want to give you insight into the qualities of a successful business, so you can in turn successfully invest.
I’ve interviewed a lot of business professionals and there is one trait which I have consistently found in successful businesses: efficiency.
This isn’t something new. Successful businesses have had this trait for years. I’ve mentioned this analysis often, but it’s worth mentioning again.
There were 23-million people living in the United States in 1850 and 11-million of them worked on the farm. As of 2004, our population had grown to 300-million, but only 1.6-million people worked on the farm. Despite the decreased workforce, agricultural production grew by 600 times. Why? Efficiency. Tractors, combines, and milking parlors all replaced manpower.
More recently, and on a smaller time scale, we’ve seen the manufacturing workforce change significantly. While there is talk of manufacturing jobs going overseas, and some of them have, more often than not jobs are eliminated because manpower is replaced by more efficient machinery. For example, my first job was working in an aluminum smelter. At the time, they employed roughly 1,300 people. Today, they have about 400 employees who do the same amount of work as we did in the 60s and early 70s.
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I want to hear your opinions; please leave a comment below and let me know your thoughts.