Let’s start by reading an interesting definition of Leverage below.
Leverage is the ability to influence a system, or an environment, in a way that multiplies the outcome of one’s efforts without a corresponding increase in the consumption of resources. In other words, leverage is the advantageous condition of having a relatively small amount of cost yield a relatively high level of returns.
This definition hits on lots of key points. Let’s take a moment to break it down.
- Leverage is theability to influence a system, or an environment,
Leverage is all about Systems. Systems stand’s for Saving, Yourself, Stress, Time, Energy and Money. Having proper systems in place will allow your business to work – instead of your working. Leverage is simply all about systemizing the routine. In other words a business system is a repeatable process that produces a profit. Unfortunately the reason most business owners work so hard is their business doesn’t work because there are no systems. Everything is in the owners head. What happens to this type of business if something happens to the owner? It’s usually not a good outcome. Think of systems as the grease in the business that gives it the ability to run smoothly. So, what are you waiting for, let’s get those systems in place … now!
Caution – don’t use the lack of time as an excuse for not implementing the proper systems. Ask yourself ‘’How much Stress, Time, Energy and Money has it cost me already by not having this system in place?” This question should usually get you to slow down long enough to realize the value of implementing it now.
- in a way that multiplies the outcome of one’s efforts without a corresponding increase in theconsumption of resources.
Leverage is all about doing more with less. Leverage is about getting more from yourself, enhancing your business knowledge and skills, developing yourself personally in addition to increasing your stamina & energy. Leverage starts with replacing yourself or much of what you do personally. Leverage is in enrolling, empowering and properly managing your team. Leverage is first all about proper time and skill management, and then training. All this will gain you the ability to get more from your employees by properly training them, treating them well, and giving them space to express their true talents.
- In otherwords, leverage is the advantageous condition of having a relatively small amount of cost yield a relatively high level of returns.
Once you are Leveraging your business by having systems in place you will continually get a return on your investment of your initial time and planning. The time it took you to administer the systems and train your people will hit a break even at some point and then will continue to pay you dividends for many years to come.
Now ask yourself the question – By having the proper systems in place “How much Stress, Time, Energy and Money is this now saving me?” Hmm, something to think about!
Ask yourself another question – “How can I provide people with my value, my products or services, while I sleep?” When you find the answer to this question – you will have created some major leverage.
Several areas of Leverage to consider for your business.
- People Leverage is using other people’s talents, skills, contacts, credibility and resources.
- Technology Leverage is fully utilizing the latest technology to increase your speed and efficiency.
- Time Leverage is managing your time more effectively.
- Structure Leverage – Getting the right people in the right places, with the right plan, will move the business away from people dependency to system dependency.
- Organizational Chart Leverage – Getting the right people in the right places starts with knowing what the right places are.
- Position Contract Leverage – Giving a clear picture of their roles and responsibilities will help them achieve more.
- KPI Leverage – Key Performance Indicators – You can’t manage what you don’t measure.
In conclusion, please be clear that if you’re not using leverage, you’re working too hard, and making too little.
If you would like to learn more on how to implement Leverage and Systems in your business or organization. Contact your coach.