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Leverage


 

 

 



 

 


Understanding Leverage


Leverage is about working smarter and not harder – it can take whatever
resources you have and make them more powerful.

Using a crowbar you can move an object much heavier than you could with
your own brute force.

The same analogy applies in all areas of business as well, yet it is the one
thing most businesses fail to capitalize on in one form or another.

dollars

Leverage can be applied to:

  • The owners
  • Managers
  • Staff
  • Finance
  • Stock holdings
  • Sales
  • Marketing
  • Production
  • Purchasing
Working Together

 

All of these areas can be leveraged to glean more results for the business – and don’t worry it doesn’t have
to be painful!

In fact more often that not, successful businesses expand at a rapid rate putting strain on all of their resources, human, physical and financial. Whilst this can be maintained for a short while it is not healthy in the long term.

And it is one of the most common reasons why business owners are stressed, overworked and seem to be in a situation where their time and energy is on call constantly. This is a human cost that is too often ignored.

Most businesses as a matter of course use leverage to fund their business; they use their own money and borrow more from their financial institution to actually fund the business.

With the help of a mentor to see what assets you have and what you can develop or purchase, you can actually plan how to leverage all of your assets:

Human          Staff you have
Physical         Stock, plant, vehicles etc
Financial        Funds used in the business whether yours or a financial institutions

Once business owners or managers begin this process they will be released from the day to day operations of the business and propelled to a place where they can take a birds’ eye view.

Once there the opportunities are theirs for the taking.                





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