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Leverage | leverage small business

Leverage is an important element for any small business to use to succeed

What is Leverage?

Leverage definition, the action of a lever a rigid bar that pivots about one point and that is used to move an object at a second point by a force applied at a third.  (dictionary.reference.com/browse/leverage).

How does that apply in business?

In financial circles leverage refers to the use of debt or capital to secure and accelerate the return on investment of a project or investment.  Sometimes this is referred to as gearing.

In management of a small business you can gain leverage in many other ways than form the financial sense and if used correctly leverage will generate a much higher return on your investment in your business.

In the realm of small to micro-businesses there is a flexibility available to owners and managers to make quick decisions and directional changes which significantly increase the ability to leverage small business very effectively

Leverage small business to move a lot with less effort

Leverage small business to move a lot with less effort

 

What are some ways you can leverage your small business?

Anything that allows you to be more productive is giving you leverage and there are many ways you can do this in the flexible environment of small business.  Here are some ideas for you

  • People
    • Staff
    • Professional advisers
    • Outsourcing
  • Funds
  • Networking
  • Systems
  • Plans
  • Marketing
    • Mix channels
      • Social
      • Web sites
      • Mobile
        • SMS
        • Web site
      • Media
        • Newspapers
        • Directories
        • Radio
        • Television
      • Direct mail
  • Focus on purpose (Planning module)
  • Build your mico or small business with the mindset “To sell your business”
  • Contribute as your contributions will be returned many times over.

The gearing or leverage impacts of these may not be readily self evident but everyone of those factors above will enable the business owner in time, to work less and earn more.  Contact Chris for assistance.

The entrepreneur reaps the greatest rewards and the greatest entrepreneurs use incredible amounts of leverage.

Think about the saying that “an ounce of pain will avoid a tonne of regret”.

Use your resources, however painful it may be in the short term, to build your business with leverage and find success.