Many business owners spend their time focusing on how they can better serve their customers or improve their service. That’s a great goal, but ask yourself if you really HAVE to provide it directly yourself? Rather, business owners should be asking themselves, “How could I use leverage here?”
So what is Leverage? Well, put simply, it’s doing more with less… or taking this further – “ever more with ever less.” So start asking, “how can I be doing ever more with ever less?” How can I serve more customers? How can I increase my production output with less input?
There are predominantly 4 primary ways to leverage in business…
- Leverage through people … Imagine if you did everything in your business – how many customers can you serve? What if you had 1,000 staff? Adding people within the company allows you to achieve more than you could on your own. Outsourcing some activities can also be a great way to leverage your time. One of the first strategies I recommend is to get a bookkeeper – the hours saved from doing the books can be used to leverage other parts of the business!
- Leverage through systems … Effective systems can save you and your team time and money. The basic rule for systemising is ‘Systemise the routine, humanise the exception’. Anything that can’t be systemised needs to be run by people. Always attempt to put a system in place rather than employing more people. A system means that things are done consistently, regardless of the team member. You can systemise about 80% of a business – the other 20% is where you need great people.
- Leverage through marketing … Most businesses are limited by sales and marketing, so start by applying effective marketing strategies to grow your business. Be sure you apply leverage in your marketing – focus on strategies that give you the greatest return on your investment. To do that you MUST test and measure every strategy you do, learn what works, then focus on strategies that get right to your market, the most inexpensive way possible to achieve your targets. A great place to start might be proactive referral strategies and host beneficiaries.
- Leverage through finance … Use other people’s money! The key to financial leverage is to get your money working for you. Adopt this principle and start leveraging your finances today.
Your challenge now is to start focusing on leverage every day. Put it into action and you will soon find you will achieve ever more with ever less.
Have a great week,