To leverage the correct way can change everything you want.
The word leverage has always existed, at least as long as I’m capable of tracking back in modern history. The word “lever” means a bar turned on a fulcrum to lift something by force. The word-ending “…age” means, according to dictionaries, “action of, power or advantage gained by using a …”. What do you think? Yes, “…a lever.”
With a lever and a fulcrum in place, you need something to leverage at one end of the bar and somebody who leverage at the other end. Since leverage became a common word in business environments some 25 years ago, the whole issue is about leveraging or being leveraged. We all know that automation is something that influences and change the entire world right now. Automation is nothing else than levering.
What Can You Leverage?
The issue is not about what you can and what you cannot leverage. In today's world, we are all into a leverage process, often without being aware of it.
When you are in a hurry and take your car to a point one mile away, you are leveraging distance and in this particular example the time. You could easily walk one mile but as time is your limitation you have to leverage the time.
The financial segment which has become a hot opportunity the last two or three decades is all about leveraging. The multi-billionaire George Soros has built his fortune by doing the right leverage. His specialty is the hedge funds which is pure leveraging to get any profit out of it.
In an interview some years ago, he said among other things, that he buys when other people sell and sells when other people buy. It smells leveraging whole the way. When there is
How To Leverage Systems?
The example of Soros is about leveraging money.
“But I don’t’ have money to leverage,” you may say.
The majority of leading entrepreneurs didn’t have money neither when they started their entrepreneurial journey. They had an idea, a dream and a burning desire and passion for letting that dream come true.
Back in time some 60 years, most probably Ray Kroc didn’t view himself when started building McDonald’s, like a hamburger business creator. The hamburger was not the product, but the system he created to sell the burger. To leverage every single part of the whole system chain was his passion and business idea.
When Ingvar Kamprad, the founder of the Swedish furniture company IKEA, found out that the volume of a typical furniture and consequently the distribution cost, represented a substantial percentage of the product cost, he invented the do-it-yourself concept and could put the product in a flat box. The system eliminated the transportation cost as it now became possible to transport the purchased products back home in your own car.
The list can continue with many examples of successful business ideas. That change the rules in the industry and some cases the whole world. The key word in all these cases is Leverage. Today the leverage concept that has an impact on every single individual, like it or not, is the Internet.
The Internet - The Ultimate Leverage System.
There are three different groups of people when it comes to how they relate to the Internet and the influence it has in their lives.
- Individuals who don’t care – they know that it exist but for many different reasons they do not “enter the game.” They prefer to line up every month in the bank to pay their bills. They don’t trust the Internet payment system, or they have closed their mind and decided that they are not going to learn how it works.
- People who are fully integrated into the online world – typically all people belonging to the so-called millennials are individuals highly integrated to the online world. After all, they were born in the middle of the Internet revolution. Every single thing in their lives connects to the online world in one way or another. Among this group, you can find many of the successful digital entrepreneurs of today.
- People who know that it’s important but do not feel comfortable with the process - In very general terms, older people like the so-called baby boomers, are found in this group or group number 1. This group is a very potential group. They have experience and knowledge. Normally they are financially quite wealthy. Further, in this group, a lot of retired people can be found, or individuals who are going to retire soon. Maybe they would like to use their lifelong business experience, without being tied up to an office or a fixed working place. There couldn’t be a better place then the online environment. Besides leveraging the online business you are into, you will also leverage the rest of your life. You can travel with your partner, you can be wherever you want and when you want. Your device and an Internet connection are the two only things you need.
To Leverage Or Being Leveraged.
Somewhere I read that 85 of the richest in the world have as much money as the rest of the global population. Quite amazing, isn’t it? What is more interesting though is to find out how these 85 people got into that group of super rich people.
For sure some of them may have inherited their money, and frankly speaking, there isn’t much we can learn from them.
The interesting part of this exercise is to learn from the people who made their fortune from scratch. You can find them in many different niches and industries, but there is one thing they all have in common:
They did not create their wealth by trading time for money! Instead, they created a system to leverage. When all tested out correctly, you just scale it up and voilà. The wealth starts to grow like crazy. So, there are two questions you need to do to yourself:
1. Are you trading your time for money, being leveraged?