In this series, we are looking at the key words that define a successful sustainable business. The forth word is Leverage. This is defined as: The power or ability to act or to influence people, events or decisions to gain higher return.
Having and using the tools to leverage has been for too long seen as a negative aspect. We see leverage done in politics to the point of blackmail. We see relationships leveraged to the point of duty and even kids on the playground using an invitation to their birthday as leverage to gain friends or a bite from other kid’s lunch.
Leverage is and should be a positive aspect of doing business. Get to know your tools, network and strengths of a relationship and then use them to build your business. But remember to always seek the win-win result or no-deal. Whenever you just use someone, it is never a positive outcome.
Leverage in a business needs to be applied to the following
- Products
- People
- Places
- Processes
- Personal
Leverage is also instrumental when understanding the benefits of your product or service. Wedging those benefits into the market and leveraging small cracks open to gain access. This is the key to business development, especially when starting out with a new product.
Take a look at your business today and look for the strengths and benefits you offer, then go out and use these in a positive way to gain ground in the market, this is leverage.
The leverage formula from the business board game looks like this
Leads X Conversion Rate = Customers X Transactions X Average Price = Turnover x Margin = Profits
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