Why Every Business Should Leverage – the Power of Leveraging

Why Every Business Should Leverage – the Power of Leveraging

“It is not enough to be busy; so are the ants. The question is: What are we busy about?”
Henry David Thoreau

Leveraging is crucial if progress is to be made. I will even take the liberty to state that leverage is mandatory for growth. While running a business the mind wishes to take over every job. Jobs, irrespective of administrative or clerical positions, seem enticing. I was no exception and considered taking on every work as a way of saving money. Unfortunately, I lost more than I saved. While saving every penny by taking on every job I was losing time; a priceless entity.

Source: http://www.mynotetakingnerd.com/blog/are-you-using-this-magic-formula-to-explode-your-profits-and-achieve-your-dreams/

My job, as an editor, is to focus on management of content and a little on marketing. However, being an over enthusiastic person with a rush of adrenaline I took jobs below my stature. After realizing the amount of lost time, I decided to segregate jobs. I concentrated only on administrative functions. The rest was passed on to either freelancers or our employees. Soon there was time and energy to look after the editing work for our organization.

Why is leveraging so important?

Leverage is a word derived from the word ‘lever’ (old French) which stands for ‘to make lighter’. Mechanically, most jobs would require 20 or 30 strong men without a lever. A lever makes things easier. In my way, I would say leveraging is earning 10% of every worker’s potential. Now, the above statement gives a glimpse on the power of leveraging.

Profitable leveraging:

Just because I stressed the importance of leveraging it doesn’t make leveraging as flawless. There are instances where leveraging had ruined start-ups. For instance, if we leveraged our work through a group of bunglers then our clients would be dissatisfied. If KFC were to franchise to every store without considering their potential to make a difference then it would have been shut years ago. I am trying to imply that leveraging should be considered only when you are sure about the profitability with it.

Let me show an example of profitable leveraging. Coca Cola’s exclusive rights were purchased by Asa Candler in August 1888. At that time, it was just a fountain drink of 5 cents, placed at every drug store. People have to walk to the store and buy the drink. Though the drink became popular it was confined within Atlanta area as it was restricted being a fountain drink. Soon Asa came up with the idea of bottling coke. Where does Coca-Cola stand now? Yes, you have the answer.

Important Model of leveraging business:

If you visit your local mall, you can witness several leveraging models. Among the most popular model of leveraging is franchising. Literally franchising is a duplication of what others do. In the beginning people averted it saying duplication will never profit. However, the profit model is booming in front of our eyes. Today everyone is running to get hold of a franchise model. Why is it so? Obviously, it is a guaranteed way of making money through leveraging.

There will be no growth unless you start leveraging. Without leveraging, you will make few bucks, which will suffice your basic needs. To make a difference leveraging is mandatory. Therefore, the next time you wish to take over a job by yourself question its worth and time invested. If it isn’t worth the time, leverage it and see the profit margin increase.

About the Author: John is the Editor of Eyeforweb.com which is a designing firm. It provides designing service through the help of expert wordpress developers and even helps in outsourcing of several other services.

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This article is one of the excellent contributions from small business owners, decision makers and professionals.