If you are looking to be more successful in life and have more time and wealth, then you need to learn to harness the art of leveraging.
The more you use leverage the wealthier you can become.
Now I’m not necessarily talking about borrowing a load of money and getting into debt until you drown under its weight.
That can be an effective (but often risky) way of building wealth and something a lot of people use to get rich in real estate.
But leverage does not just refer only to borrowing money.
In fact, there are seven forms of “leverage” and the more of the seven that you use then the wealthier you can become.
Leverage is simply the ability to control a lot with a little. It gives you the ability to utilize more than just you.
Through leverage, you can effect change much more rapidly.
Leverage equals speed, or velocity. The more leverage you have, the faster your journey to wealth.
So, what are the seven forms of leverage? Well, here they are:
1. OPM (other people’s money)
If you want to become wealthy, you need to both invest and use money from other people – this will move you towards your goals faster.
OPM lets you buy assets earlier, at a faster rate and control a large amount, rather than saving a whole amount.
2. OPT (other people’s time)
There are numerous companies, small businesses and individuals that will sell you their time – so why aren’t you using it? I have an accountant, lawyers, an insurance broker, a financial advisor, a social media team and a website manager.
I use all of these people’s services, as they save me time and money. They save me money because they free up my time to make more money.
3. OPW (other people’s work)
This is similar to OPT, but now you employ people to leverage their time. Apple, for example, leverages the time and effort of 147,000 staff members.
OPW (and OPT) essentially allows you to capture the time and effort of many.
It allows you to produce quickly, what you couldn’t produce alone in numerous lifetimes.
4. OPE (other people’s experiences)
One of the best resources or leverages available to you is the experiences of others.
It’s an enormous waste of your time to try and learn everything you need to know by trial and error.
You can learn from the experiences, knowledge and mistakes of others. This may be via a mentor, OPT, OPW, books or seminars etc.
Making costly and time-consuming mistakes just isn’t worth it.
5. OPI (other people’s ideas)
OPI refers to learning and copying good income-producing ideas.
Franchise and networking businesses are examples of how you can use the power of OPI – take a successful product or service and follow a proven business model.
Your technology might change and systems may alter, but the fundamentals won’t.
The process is tried, tested and proven to work. You just have to learn it and diligently apply it.
6. Scalable production & distribution
Whenever you are looking at investing in a business, you should always ask whether the product or service can be easily scaled for both production and supply.
For example, a book can easily be scaled as it can be printed as many times as demand requires.
And, with an electronic book, production and distribution are even easier and cheaper.
7. Scalable customer base
A local shop by itself doesn’t have a scalable customer base – it can only service customers in its local area.
People from all over the world may want your product or service, but if they don’t know about you or can’t get to you, then it’s as if you don’t even exist.
But, the internet has given businesses a true global customer base for virtually no cost. The more the customer base is scalable, the more valuable the company is.
Companies that deal in non-physical products have both scalability of production & distribution and a scalable customer base.
I hope you can see that leverage is essential to creating wealth. Those who want to become wealthy or are on the path to wealth must focus on understanding, mastering and fully utilising leverage.
I hope you find these tips and advice useful, but awareness alone is not enough. You need to apply what you learn, and it can be hard to do it by yourself.
If you feel you may benefit from some coaching or mentoring, just get in touch.
I have been studying mindset and personal growth for two decades and have used what I’ve learnt to build several seven-figure businesses.