Leverage is defined as the action of a lever or the
mechanical advantage gained by it in a specific situation.
According to Kevin Eikenberry, "When we use a lever, we use
specific, correct actions to create great results. That is
what we all want to do with our time - find the activities
that will create greater results - personal, professional,
business, financial, or others in our lives. Considering
the returns (leverage) you will get on this investment, it
will be time well spent."
Leveraging our assets, especially our time, must become an
exponential process rather than the familiar linear method
of exchanging our time for income. We must learn to think
differently, adopting a new paradigm. Leverage is truly the
key to wealth-building. Leverage is what gives the
successful entrepreneur his competitive edge in the
marketplace.
A couple of good examples of high income, but still "caught
in a linear model trap" are many doctors and lawyers. They
lack leverage. Their income is in a 1:1 direct proportion
to their productive time. We must learn to use our precious
time carefully and enact systems to generate revenue for us
consistently and in ratios of 2:1, 3:1 and so on, whether
we are currently working or not. This is leverage at work.
The systems we set into motion will work on our behalf
24/7/365.
A 1:1 linear relationship, where time spent working equals
income, begs a simple question: What will he do when he
runs out of workday? There are always just twenty-four
hours in each day, approximately ten of which are available
for productive sales work. This linear thinking mode is
always going to provide a dead-end to earnings potential.
We will simply run out of productive selling time.
An entrepreneur must utilize an exponential approach, a new
mindset, whereas he develops and utilizes pre-developed
systems for building income. These systems may be web
sites, blogs, fax-on-demand services, social media,
memberships, speaking engagements and so on. I favor a
"multiple streams of income approach" popularized by Mark
Victor Hansen.
Revenues can be generated by the successful, simultaneous
implementation of numerous systems providing these streams.
For example, an engineering firm with this expanded
paradigm may derive revenue from services rendered,
sub-contracted work, construction, testing services,
consulting, teaching, writing and publishing technical
articles. This strategy reinforces the thinking that while
one stream may be down, the others are up. Regardless, the
streams will total far more than any individual,
non-leveraged source of income would.
The key component to this entire thought process is
clarity, and the acceptance of a new mindset by the
entrepreneur, separating himself from the traditional 1:1
linear mode previously utilized. When we employ an
exponential strategy, we open the floodgates of opportunity
with limitless income potential. There is often far less
stress and a great deal more enjoyment derived as well.
This is how busy entrepreneurs can enjoy a lifestyle envied
by others, and have the time to enjoy it as well.
----------------------------------------------------
Daniel Sitter, author of both the popular book, Learning
For Profit, and the highly anticipated book, Superior
Selling Skills Mastery, has extensive experience in sales,
training, marketing and personal development spanning a
successful 25 year career. http://www.learningforprofit.com
Experience his blog at http://www.idea-sellers.com
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