Lets begin by talking about leverage. What do I mean by leverage?
In it’s most basic application a lever allows you to lift or move a heavy object with a lesser amount of energy. For instance placing a long stick under a rock in order to move it.
But how does leverage apply to business? Can you place a stick under your income statement to boost up your net income?
The answer is yes.
There are many ways you can use leverage in your business to increase the results you are achieving. The term leverage is often used in reference to the financing of a business. Getting in with little or nothing down using someone elses money is a form a leverage.
THE STRONGEST LEVER
Marketing is arguably the most powerful business lever of them all.
Why?
Because marketing has nearly unlimited upside potential with nearly no downside potential.
Leveraging your business success through marketing can improve your results by 100%, 500%, 1000%, or more with almost no risk or downside potential.
Let me give you a few examples.
It costs the same fixed amount of time and money to run a newspaper ad whether that ad creates one response, five responses or a hundred responses. It costs you the same whether you close 1%, 10% or 20% or those that respond. It costs the same whether the fee income you create is $1000, $2000 or $3000.
When you send a follow up letter to your prospects it costs the same to mail it whether it generates a 0.5% response or a 1% response or a 4% response.
So, as you see the risk or downside potential is limited. And if you are already running the ads anyway the risk is nothing. But the upside potential, the opportunity to improve your results, it virtually unlimited.
And what is the lever that makes this happen? Your marketing.
In other words by becoming better at marketing, by learning how to use better words, better systems and better approaches to your potential client you can greatly increase the results you are getting with little or no risk.
Now that’s a lever!
You create leverage on your investment of time and money and create a much greater result. That’s called leveraging your mind.
By: Shawn Meldrum
Archive for December, 2009
Business Growth Through Leverage
December 24th, 2009Threadless – Community Based Business
December 22nd, 2009
Community based business has become a new phenomenon in the internet age. With customization of products by the voice of the consumers, it has become one of the best business models that are coming into existence. This approach carries little to no inventory cost since all of them will be sold. Community based business where customers’ voices are heard will a part of the growing trend to come.
The traditional business of “I make and you buy” business model is slowly fading away as a new business approach where “you decide we make” has increasingly risen to popularity thanks to a company called Threadless. Threadless itself is one of the community based business that is growing rapidly through the community driven business. The consumers pick, choose and design their own graphics and leave it up to the business to work out all the kinks in creating a newly customized t-shirt to cater to each individual.
Threadless started out small and quickly expanded in just a few years. They listen to their consumers and implement the changes necessary to cater to their specific needs. Their website is a big community where ideas and graphics are exchanged to create the t-shirts they have in mind. Contests are held and rewarded to individuals with the best t-shirts. Threadless encourages the contestant to promote their own stuff to further promote their brand image and business.
When a business listens to its customers, products and services are specially crafted for the consumers who want just the way they envisioned it. There will be no inventory cost as most of the designed items are demanded by the customers and everyone ends up happy. By far, Threadless has sent an example that is worthy of following. A community based business might be the best business in the internet age.
By: David Kam
Business Current Accounts
December 21st, 2009
No matter what industry a company is in, from a small business such as a shop or plumber through to international corporations, they will all need access to funds on a day to day basis to cover their liabilities and costs. From raw materials and bills through to wages and investments, a company of any size will need to have instant access to their funds in order to keep on top of their expenses.
The first thing on the shopping list for a person starting a business is a business current account. Unlike a personal account, which is designed for the needs of an individual, a business account is entirely geared towards helping to manage funds for a company, and thanks to online banking from many commercial bank providers, is a transparent and simple solution to keeping on top of the day to day costs that a business has.
Many banks offer some degree of free business banking, which is a real advantage, especially for smaller companies and those who have recently been established. A company wants every penny that they have to be working hard for them, and being able to avoid costs for handling money means a better profit margin.
With an online business current account, you can get access to funds 24 hours a day through the internet, pay bills instantly, and keep track of exactly how well your company is doing.
This kind of information, combined with a range of other products and finance solutions and business deposit accounts allows you to plan growth strategies and keep ahead of competitors and ensuring that your assets are working as hard as possible for you.
By: Alistair Leckie
