Leverage in Business

[Andy]

Since this area of the site is business/money-making orientated, I'd like to introduce this topic  

Do you know what leverage is?

It's where you know how to make money but you realise that if you sell/share that expertise to others you get leverage!

Other ways to exploit leverage is where you take out a loan to finance a business, do network marketing, trade options/futures/spread bet, offer a franchise etc.

Leverage is a key component in how people get wealthy, so this thread is here to explore leverage.

I have a few ideas but I want to leverage this community to generate more  

[Queen Bee]

Is leverage basically what those real estate infomercial people do? The ones give you tips and secrets on buying and selling real estate without taking a dime out of your pocket?

I would like to do something like that and then sell it to a bunch of people... But I'd never come up with a good idea for it.

[Andy]

Hi Articutis,

yes you have a good example here on leverage. These guys have knowledge on real estate so they sell it to a mass audience rather than one-one like most real estate people.

p.s. I think the ideas will come once the mechanics are understood.

[Andy]

Leverage is so powerfull these days.

Every person in business should use it.

For example you have a shop selling skateboards. To get leverage, you market a club associated with your shop, offer discounts to club members, have T-shirts and special members-only events. It's like making more from any customer of your store beyond the first sale.

articutis: not quite, the idea is that you take a customer and use them as a means to obtain at least 2 more sales.  This is the leverage part.

[CoastPC]

IMHO, one of the best forms of leverage is 'other peoples money' !
Let me explain, you have a great business idea, say selling hotted up widgets
You need stock, a website, shopping cart system, advertising money etc. you try to get a few people as excited about your idea as you are. You get your business plan ready, projected sales, market areas, sales strategies etc, all ready and presented on a cd-rom and take it to potential investors! There are many folk wanting to put their money behind "good ideas", its a matter of finding them.
A major drawback is investors wanting returns too quick. I still believe there is no such thing as a "quick buck" !
Takes time and hard work by all involved and the potential investors must understand this.
  Maybe I have mis-understood the word "leverage" ?? The above is just MHO.  

Chris
   

[Andy]

Hi CoastPC,

I think you do understand leverage such as using other peoples money

Actually many people made a quick mega-buck by hyping up a company and floating it on the stock market then cashing in shares before anyone realised that the company could not deliver the projected revenues and growth.