A good buddy of mine is quitting his 9 to 5er to start his own business. The first step is to start small. The second step is to apply the concept of leverage to really build it into something.
The idea of OPM (using other people’s money) to magnify your position is well understood. Especially in the property and investment markets. What it’s really about is leverage.
In fact, big money always comes about by capitalizing on leverage.
Leverage In A Nutshell
The easiest way to apply leverage is to duplicate successful results again and again. How much you can do this is dependent on market size, compettion, and of course, the success rate of your duplicating process.
If you’ve got a high success rate, the sky’s the limit.
Here’s How You Do It
If you have your own blog, you’re already doing it. There’s a lot of money in media because you produce the product once and then duplicate it thousands of times relatively inexpensively.
I only have to write this post once and thousands of people can read it. Think about all these media categories:
- TV and radio shows
- Newspapers and magazines
- Video games
- Web content
Build it once and the hits keep coming.
Now, obviously there are a lot of brick-and-mortar and service types of businesses that can’t leverage themselves the way media companies can. But as a small business owner or entrepreneur, your goal is to build up your business to the point where you have to expand.
My buddy is starting a pressure-washing business. Pretty simple and basic. Maybe it doesn’t sound real sexy or glamorous, but it’s a solid little business to start. There’s some decent money to be made for an owner-operator in this market and that’s phase one.
Phase two is applying leverage. And this is what every entrepreneur should be setting goals towards. It’s the basis of every trade business …
- Start the business and build it up into a solid earner. Making anywhere from $50 to $100 an hour.
- Find a good, dependable person. Start giving them your work part-time and spend that time yourself going out and bringing in more work. You’re still charging $50 to $100 an hour, but you’re only paying $10 to $30 an hour for the labour. That’s the leverage.
- Steadily grow their position into full-time employment and duplicate the process with your next employee.
It’s that simple. The hardest thing to do is manage people. But that’s something that’s infinitely easier to do when you take the time to bring great people into your organization. So build steadily but carefully. And hone your duplication (growth) process every step of the way.
The next thing you know, all you’re doing is working on bringing in the business. And the next thing after that, your sales team is doing it and you’re just directing the vision of the company.
That’s leverage. And that’s how you do it.
The best ideas are simple ideas.