After several years of working with small business owners I have learned there is no better way to grow a company than with: Leverage! Leverage is the most productive way to grow a company. So what is leverage? The use of other people’s resources.
Leverage can be broken down into one word: TIME
T – The use of other people’s Time
I – The use of other people’s Intellect
M – The use of other people’s Money
E – The use of other people’s Experience
You can leverage your time by using other people’s time. By hiring employees you are doing this, as well as asking for help from friends and family. You don’t have to do everything yourself. Sometimes it pays to work with others.
I have hired some really smart people to work in my organizations. By hiring someone who already has the knowledge and intellect, it saves me from having to learn it. Plus, you can’t be an expert in all aspects of your business. Hire someone who has the knowledge of accounting and taxes, so you don’t have to do that. Hire someone who has the knowledge of computers and software. The list goes on and on.
The use of other people’s money is the ability to leverage credit and financing to increase your company’s bottom line. Don’t go out and give away equity in your business if you don’t need to, just to get a capital infusion. In many cases you can leverage other people’s money by using credit and financing.
I can’t even count the number of times I have saved money by just asking others to think of a better way based on their experience. Look to those that have been through similar circumstances as you and get their perspective on how to handle specific situations. Listen to what they did and what worked or didn’t work. Experience is vital.
