Is Leveraging your Business a Good Proposition?
In physical terms, leverage stands for a mechanical action wherein a small force is applied to create a large reaction. An example for this is the use of a lever with the application of a minimal force to move a huge stone. If you were to try to move the stone with your bare hands, there is no leverage and you will not be successful in budging the stone.
But, can the principle of leverage be applied into other aspects of your life and in improving the success of your business
? It is definitely possible to use the concept of leverage in many instances in the day-to-day affairs of your business.
Not using the principles of leverage within your business is very tedious and less fruitful. If you are trying to accomplish all the tasks of your business yourself, the output goes down and little is achieved even though you are putting in a lot of efforts to complete everything by yourself.
However, if you are breaking up the tasks into smaller portions and then handing it over to the concerned experts in that area, the time taken to complete the project or task in hand goes down. All you need to do is collate everything and get it organized and you will have your finished task done in no time.
The difference here is you are leveraging your task and you are getting the huge task done in no time and minimal efforts while you would have had to put in a lot of effort and time if you were to be handling the tasks single-handedly.
This concept of leverage need not be limited only to the use of other people for completing your work. It can also be utilized in the creation of new wealth.
Imagine a scenario wherein you are trying to use up your resources in order to purchase a piece of real estate for your business. If you are trying to use all your cash assets for this purpose, this task might seem very formidable. But, if you are running this in a joint venture with others or borrowing from others to make this investment, your task becomes easier. This is an example of financial leverage to help you achieve higher goals than what you could have if you were handling things on your own.
As you can see, leveraging can be used in many aspects of your life and for the tremendous growth
of your business which would not have been a possibility if you were struggling and juggling things all on your own.