lever number one
1. Other people’s work
Think about this let’s say that my friend tom here is starting his own restaurant business, he greets people, takes orders, makes the food, he delivers the food, and he cleans up after the customers leave but he encounters a problem. There are other customers who have been waiting for a while to get patient and leave.
My other friend jerry also starts his own restaurant business but he hires a couple of waiters a couple of cooks and a manager to make sure everything runs smoothly. He is able to serve all other customers in a timely manner which generates more revenue.
See Tom and the first scenario is the bottleneck of the business. There is only so much he can do by himself so his customers leave.
Jerry on the other hand used other people’s work to become more efficient and effective. Jerry is able to produce more results due to the fact that he is not the bottleneck of the business.
Now, this is just a quick scenario think about real companies that grew to massive levels that would not have been possible without other people’s work. Think about Amazon will not be the massive trillion-dollar company that it is today without its 640 thousand employees.
2. Other people’s knowledge
As human beings, we don’t know everything each person has a different set of skills and talents that can be used to build a powerful business.
As Robert Kiyosaki once said an intelligent person hires people who are smarter than he is. But using other people’s skills knowledge and experiences you are tapping into a resource that you didn’t previously have. This knowledge can come from skilled employees consultants as well as mentors and coaches there is no reason to spend seven years learning by trial and error when someone can show you have the same knowledge in just a few hours.
Something that many people don’t realize is that successful people gather to exchange ideas knowledge and strategies. Most of them surround themselves with other like-minded people to learn and use each other’s knowledge. This is what is typically called mastermind. This is where you have access to other people’s knowledge and use it for your own business.
3. Other people’s money
There are different ways people use other people’s money for example when it comes to buying a new car most people use a car loan the bank uses money that other people have deposited to give out a loan to the person looking to buy a car.
In this instance, the buyers are using other people’s money to buy the car. The rich however use other people’s money a little differently. While most people use credit to indulge in consumerism the rich use other people’s money to create wealth that otherwise they wouldn’t be able to. this is the difference between good debt and bad debt.
Bad debt is typically used for consumer goods that we cannot afford. Good debt is used to leverage large assets that we cannot afford a loan but it’s used to generate more money back.
For example, let’s say that this investor wants to buy this little apartment complex that costs three million dollars. Even if he has a fairly high income after taxes he still wouldn’t be able to afford to buy this three-million-dollar building. But let’s say that he can put down six hundred thousand dollars in finance and the other 2.4 million.
Also read – Total Money Makeover by Dave Ramsey (7 baby steps)
Now he’s used other people’s money to control this 3 million-dollar asset. What if he doesn’t have the six hundred thousand he can still use other people’s money?
This is where investment funds come in let’s say that he gets three investors who invest $200,000 each. This makes up the $600,000 he needs for the down payment of the Property.
Each of them will own 25 percent of the deal which is seven hundred and fifty thousand dollars each of the total value of the property. Without any money, the original investor is able to take advantage of 3/4 of a million dollars worth of a real estate.
This is a very simplified example and it is used for illustration only it is not recommended for someone without experience to race investor money. The same idea can be used in regular business. Many businesses have used that to buy or expand their businesses. Amazon, for example, uses debt to create its many fulfillment centers which gave them an edge over its competitors by providing faster shipping they were able to dominate the market.
Money is a resource that can be used to create more money. As long as the cash produced outweighs the debt and the interest then it can be used to create wealth that otherwise wouldn’t be possible.
4. Other people’s time
Time is a very limited resource we only have 24 hours in a day and something that many successful people do is use other people’s time in order to leverage their own.
everyone has those little tasks that don’t produce much value back but still need to be done.
Most highly successful entrepreneurs delegate these tasks to others to make time for those high-value tasks.
For example, if in their business one hour of their time can produce $5,000 in value for the company it doesn’t make sense to use that one hour to watch their car when they can pay someone fifty dollars to do it.
If you look at highly successful individuals many of them don’t do things like clean their house wash their cars or even cook their own meals in many cases. They leverage other people’s time to be able to leverage their own.
5. Their network and other people’s resources
Something that many people don’t talk about is leveraging your network.
You know what they say your network is your net worth.
Having strong relationships can allow you to tap into resources that could be hard to get on your own.
For example let’s say that you want to write and publish a New York Times best-selling book, quite the challenge. Now you happen to personally know a prestigious publisher that has released many bestsellers. So you go to him or her for tips and information and even help to publish and promote your book to hit the bestseller status.
or what if you have a great new business that can impact many people’s lives?
But no one knows about it yet and you happen to personally know a few influencers with big audiences with similar values that would love to work with you and bring exposure to your business. By having a strong Network many successful people are able to take advantage of resources that other would be difficult to access.
Now being friends with someone does not entitle you to their resources.
But if you ever need someone else’s resources you must create a win-win proposal that can benefit you and the other person.
6. Other people’s ideas
Researchers say that the average person has sixty to eighty thousand thoughts and ideas per day. This means that anyone can have a great idea that can make a massive impact.
This how the story of Richard Montana who went from being a janitor making four dollars an hour to creating a product that would make billions of dollars in sales.
This product is the flaming hot Cheetos. As we mentioned before Montana was a janitor at frito-lay where he thought about putting chili pepper into Cheetos. So he took some Cheetos that hadn’t been dusted yet from the production line and made his own at home.
He presented his idea to the CEO in hot Cheetos became one of the biggest product releases in Frito-lay history making billions of dollars ever since.
We don’t have all the answers and all the ideas, of sometimes combining someone else’s ideas with your resources or your idea with someone else’s idea might produce something unique and special.
7. Automation systems
We live in an amazing world where technology can be a huge point of leverage for anyone willing to use it. Just about anyone can use the internet to reach millions of people. With social media targeted advertising and online sales pages, an automated follow-up has made it easier than ever for anyone to create massive reach and impact than ever before.
You can take a weekend and create a Facebook ad that brings exposure to your business and set up a sales page that sells the product for you and even creates an automated follow-up that will reach out to those who haven’t bought your product yet.
See the internet has created one of the most powerful leverage points for both businesses and individuals. Think about this, the article was created with a laptop and one person yet we have reached millions of people using this powerful thing called the Internet.
So in the comments below let me know which of these love which tools you will be using first and why.
Also Read – The Intelligent Investor – The Ultimate Book Summary
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