The Secret Tool That Only the Smartest Business Leaders Utilize: Leverage

90% of businesses NEVER make over $1,000,000 in one year.

(Image by: Jinyun)

Why? The business owner isn't utilizing leverage.

In the context of business, leverage refers to using various strategies and resources to gain an advantage and maximize the impact of your efforts. Leverage is all about finding smart ways to achieve more with less. And do we have some smart tools for you.... But first, a little lesson on leverage.

(Image by: Kelly)

Leverage in physics is a way to make it easier to move or lift heavy things. Let's say you want to lift a heavy object like a big rock. If you try to lift it directly, it might be too heavy for you, but using a lever (as depicted in the above image) will make lifting the rock much easier. The longer the lever is, the easier it is to move the heavy object.

Consider this:

Scenario 1- Short Lever: If we have a short lever, it means the part of the lever where we push down (called the effort) is closer to the heavy object. In this case, we would need to push down with a lot of force to lift the object. It would be harder because we have to use more of our strength.

Scenario 2- Long Lever: Now, if we have a long lever, it means the part of the lever where we push down (the effort) is farther away from the heavy object. When we push down with the same amount of force as before, the long lever allows that force to be spread out over a greater distance. This spreading out of the force makes it easier to lift the heavy object (i.e. you don't need to push as hard).

It's like when you push a door open from the edge—it's easier to open because you're pushing farther from the hinge.

(Image by: Sebastian Herrmann)

"Give me a lever long enough and a fulcrum on which to place it and I shall move the world."  Archimedes

As mentioned earlier, leverage in business means finding smart ways to achieve more with less. It's about using your available resources, such as time, money, knowledge, or relationships, to create a bigger impact or achieve greater results.

Business genius, Alex Hormozi, categorizes business leverage into 4 categories.

1. Collaboration

2. Capital

3. Content

4. Code

(Screenshot from Alex Hormozi Video)

Every business skill, knowledge, tool, resource, and asset can fall into one of these categories.

For now, let's focus on the lowest level: collaboration.

If you're a small business owner and you're looking to sell your product or service to more people, you can:

1. Cold call and sell to individuals all day.

   This may get you 5 appointments. It is a low-leverage activity and puts you here on the lever:

2. Utilize prospecting tools to get more qualified leads

   Having better leads will net you more appointments. Using prospecting tools may get you 10 or 20 appointments. Your input will be the same, but your output will be increased.

3. Hire a sales rep and spend 2 hours training them

   Instead of spending 8 hours a day, 5 days a week. Spend 2 hours hiring and training a sales rep to do it for you. 2 hours of effort/input gives you 40 hours of output EACH week.

Activities 2 & 3 are MORE leveraged and moves you higher up on the lever. You are achieving more with less.

(Image by: Austin Distel)

Another example:

If you're a small business owner and you're looking to capture more leads, you can:

1. Manually respond to every person who send you a message

   This eats up a lot of your valuable time and you're even likely to miss some prospects due to being too slow in your response or losing the conversation.

2. Develop automations to personalize message to each prospect

   From one centralized dashboard, you can integrate your website, your Google Business Profile, and your social media accounts to:

   • Chat with prospects who visit your website... automatically.

   • Respond to missed calls with a text message... automatically.

   • Answer business inquiries made through Google... automatically.

   • Answer business inquiries made through your Social accounts... automatically.

Automating as much of your process has possible is a HIGH leverage activity. Immediate responses leaves the prospect is satisfied. The business is won. And you’re a happy bystander to the whole process, pleased with how simple automation really is.

(Image by: Clay Banks)

The more collaboration, capital, content, or code you can leverage, the bigger your output will be for each input; you'll get more for your efforts. And the more leverage you get, the more likely you'll be able to join the top 10% of businesses selling more than $1,000,000 a year.

Two things small business leaders can leverage TODAY are:

1. Prospecting and Marketing Tools

2. Automations

Spend less time, effort, money, and resources and still scale your business.

Need help finding more opportunities for leverage? Get access to our FREE online marketing & technology audit today. Sign up here: https://audit.consolve.io