The Power of Leverage

While speaking with a client recently, we were discussing ways he could expand his business. He is a successful personal coach, is currently stuck in the classic Hours for Dollar Trap. His dilemma stems around the fact that his core business is based upon his ability to meet with more clients and/or raise the hourly rate for the work that he performs. This is a problem faced by so many people when they decide to become a business owner.

As a small business coach, my diagnosis is almost always, he is missing the power of leverage in his business.

So many new small-business owners and entrepreneurs fall into the hours for dollars trap when they are starting a business. For many it is an easy way to generate income in the near term. They have a certain expertise that can be capitalized upon that many are willing to pay for. However the time that they spend performing services instead of building a sustainable business just delays the time before they can truly experience all of the benefits of becoming a business owner.

So how can you capitalize on the leverage within your business? What are some of the most common leverage points available for you to take advantage of?

Leverage is the ability to create value, and distribute it through multiple channels, products or services simultaneously. You create the value once, and get paid for it many times over.

In my example of the coach, he creates a specific plan to help his client break through a barrier that proves successful. He needs to look for as many ways as possible to make that plan available to his customer base. Thus, he has created value in the plan, and uses leverage to capitalize on it repeatedly, instead of just the fee that the original client paid.

If you’re in a service delivery business, is imperative that you build the business so you can get away from being the deliverer of the service and instead focus your time on marketing and growing your business. You need to find alternative delivery methods, and ways to generate additional revenue by recycling your expertise into additional products and services. Implementing these changes as you start your business will put you well ahead of most new business owners.

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