Chapter 17
The Principle of Leverage
by John Counsel
Understanding and applying leverage intelligently can accelerate the realisation of our purpose for going into business… to work less and earn more.
Leverage usually refers to special financial techniques used to gear up the returns on investments. It’s the same principle at work, but financial leverage is best left to the experts.
Let’s look at how you can apply equally powerful forms of leverage to help you gain greater personal freedom. That doesn’t mean that you should ignore financial leverage or other areas of expertise best handled by skilled professionals. Quite the opposite. Here are some correct perspectives on using professional expertise in your business:
- 1. There will always be areas of expertise outside your own knowledge, skills or experience.
2. There are areas of expertise beyond your present financial resources.
3. There are areas of expertise you may not even know exist.
4. If you can become truly productive and profitable, you’ll have more than enough money to be able to afford these kinds of professional expertise.
5. If you understand and apply this principle effectively, you’ll enjoy a productive, profitable network of business relationships that will not only make you aware of any professional expertise you need, but will connect you with those best qualified to provide it.
6. Professional expertise is a form of leverage in itself. It can reduce time, effort, cost and risk — and boost your profits.For the purposes of this book, and to help you get the principle of leverage into a practical perspective, here’s how it works in a typical small business.
Here we see the rewards we want to collect at one end of the lever, and the time and effort required to obtain them at the opposite end. The longer the lever — and the closer we can place the fulcrum to those rewards (the Pivot Point) — the less time and effort we’ll need to put in to pick up those rewards. The bigger and heavier the rewards, the greater the leverage we’ll need to lift them.
Trying to lift without leverage would be hard and potentially hazardous to our health. But trying to lift them with ONLY a lever, no matter how long it is, is no easier. We need a fulcrum against which to balance the lever before we can apply the “see-saw” action that actually implements the leverage and reduces the time and effort required.
For detailed information about each of the components, click on them.
View John's series of articles on Leverage in Network Marketing.
Taken from
“Don’t Go Into Small Business
Until You Read This Book!”
by John Counsel
Small Business Books 1996
© 1996, 1997 by John Counsel
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