You Need Leverage To Make More Money — Here Are 3 Types Of Leverage
Make more money without increasing the risk
When most people hear the term “leverage” they think of financial leverage where one borrows capital to buy things with the expectation of those things to increase in value so they can pay back the debt and have profits. While that is leverage, it is the riskiest of its kind and there are other kinds of leverage that aren’t risky at all.
1 Time Leverage
Start figuring out how much your time is worth. We all have the 24 hours a day, and no one knows when our time is up, so do not waste your time. Personally, I don’t do any tasks for less than $2,000/hour unless it is a task I enjoy such as writing on Medium.
My family has had enough of me and my “I don’t waste my time”, because every time they ask me to do something I would calculate the time I would use on the task and pay them to do it themselves. For instance, if my girlfriend wants me to clean the house, which could easily take me 2 hours of my time. Instead, I would pay her $300 to do it herself. By doing it that way I just saved myself $3,700 due to how much I value my own time.
These are the things you obtain with time leverage:
- More things are done faster
- You can get things done without using any of your own time. This will buy you freedom.
- The lower-value tasks such as vacuuming are done by other people so you can focus on high-value tasks.
- Your income is not limited to time used since you can delegate tasks.
2 Tech Leverage
The aim of using technology to your advantage is to standardize the processes of your business. By this I mean you should be able to deliver your value proposition to your customers automatically without any input from you.
Examples of systems you should consider are:
- A marketing system that keeps delivering qualified prospects to your business
- A sales system that automatically collects the payment from the prospects who turned into customers
- A product delivery system is a system that delivers the product or service to the customer without the need for your input
Those are just examples, and you should consider even more systems to leverage your business with technology.
3 Network & Relationships
This kind of leverage is based on using networks in exchange for value. For instance, if you want to get from A to B, you do in fact not need money, your own car, gas, train tickets, or similar. The only thing you need to look for is a person who wants a car delivered from A to B. Then you can drive the car, and you might even get paid for it as well. That is how you use the network to receive value.
You can also use relationships to get referrals, resources, strategies, experiences, etc. All things that can be translated into value.
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