Often a time young entrepreneurs want to know how to maximise the power of leverage in their business. And yes, they have a right to know how to.
If you are not using leverage, you are working too hard and earning too little – T. Harv Eker
Do You Remember Levers?
I assume we all have an idea from elementary physics of the lever system. We use levers in almost all aspects of life so as to ease the burden or effort required to accomplish a certain task. Archimedes is credited with saying “give me a place to stand and with a lever I will move the whole world.” Leverage is here to aide. Almost nothing comes up without it. How does one earn billions of dollars yet he has only 24 hours as the others? The reason is only leverage.
I’d rather have 1% of the efforts of 100 people than 100% of my own effort. -John Paul Getty
A few know the word leverage in the financial world. It is the use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment. This is used widely in real estate transactions. For example, one can be able to control a large financial asset such as a home with relatively little of their money. When one buys a house at the right timing, they can turn the small payment made into increased multiples of it when resold at a convenient time.
Thus we see this concept of leverage everywhere. Due to the high costs to start our home business, my mom borrowed money through selling of stocks and bonds so as to get started. Donald Trump borrowed lots of money to build his real estate empire. Warren Buffet leverages his investors’ money to create wealth for himself and his investors. Oprah Winfrey leverages her talents through vast media syndication.
And all true leaders will leverage their followers’ efforts to obtain their collective goals. Traditional businesses use leverage through the hiring of people to work for them. The business owner leverages his employees’ efforts. His pay is due to their cumulative and synergistic work. Two are better than one. Leveraging was the point, and now see it. Thousands earn full-time incomes on part-time hours. They are living the life of their dreams. This is the main reason as to why most of my friends joined me in network marketing. It is really simple and the best way to have more time freedom and money to live a freedom lifestyle.