When you leverage your business – you grow your business and at certain times in an entrepreneur’s life the word leverage will take on much more significance.
If you are self-employed the word ‘leverage’ should be printed in block capitals where you can see it, every day. Typically, leverage becomes important when you are approaching the time when you either want to expand or want to sell the business to either move on or retire.
When it comes to valuing the business for a potential sale, self-employed people will find it almost impossible to gain anything more than goodwill if the turnover generated has largely been from the one person who is exiting that business. In addition, a company that is largely dependent upon one individual (the owner) for income generation will also find it difficult to attract a good market value.
At some point we must all look at how we may leverage our efforts and take ourselves out of the equation when it comes to how we generate income, even if it’s just to get some ‘me time’ back.
Leverage Your Business
“the ability to influence the system or an environment in a way that multiplies the outcome of one’s efforts without a corresponding increase in the consumption of resources”.
In other words we must, at some point, focus our attention on working ON the business instead of IN the business, all the time.
Many business people can leverage business from their personal efforts by employing individuals with various skills and then managing that business. Naturally this requires an investment and the ability to manage. Also, that a system is put into place to see that everything happens and can be reproduced by any new owner. This can contribute to considerable overhead in terms of salaries and social costs not to mention risk.
A better alternative in leverage for your business may be to engage freelance individuals from different disciplines and with skills that enhance the running of the business. Yes, it still needs managing but if one of those individuals is a good PA even getting organised can be outsourced.
Less costly, without adding to head count, this could be a good way to expand and leverage you own personal efforts at the same time. the bottom line – an expanded business that is more saleable.