What does leverage mean and what does that look like in business?
If you’re a service provider, as a new business owner, you are often trading time for dollars. Eventually, you run into a problem – no more time to trade. That’s when it’s time to think about leverage. But what does leverage mean and what does that look like in business?
The "L" word.
Leverage is a fantastic concept for a business owner to maximize their revenue. Every successful business owner has learned about how to leverage in their business. You can’t continue to trade time for dollars and expect to keep growing. You will ultimately cap out so if growth is where your head is at, you have to learn to leverage.
There are four things that you can leverage in your business: time, talent, tools, and team.
Leveraging your time can take many forms. One of the most common is to create passive revenue streams. Think of ways to make money while you sleep or while you’re doing other things. This can be an information product, a self-study program, working in groups rather than one on one or any other number of ideas along those lines.
Leveraging your talent can also be used by leveraging your expertise in a passive revenue stream but it can also mean being an expert and being able to charge more. You may even leverage your talent and expertise as an author or a speaker.
Leveraging your tools is all about working most efficiently both in time and money. Sometimes we might be doing things manually where there is a tool that would allow us to work smarter rather than harder. Tools that automate functions are a critical piece of the leverage puzzle. If you’re already using tools, you also want to make sure that you’re using so many tools that it’s difficult to keep up with. Look for areas where you can combine several tools to the use of just one tool to do your business more efficiently.
Leveraging your team is about using those people on your team for their gifts. A big component of this is learning the art of delegation. Just because you’ve always been the one to do it doesn’t mean you’re the one that should be or that you’re even the best at it. Leverage your team so that you are free to do only those things that you can do.
Once you figure out how to leverage all four of these areas in your business, you will find that your opportunities are greatly increased and very likely so will your income. Think about what you can start leveraging today to put you on that path and you will begin to see changes in your business very soon.
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Holly Kile - Marketing Assistant