A crowbar is an incredibly powerful tool. Archimedes used to say “Give me a place to stand and with a lever I will move the whole world”.
What is leverage?
Leverage is an incredibly powerful wealth building tool. In relation to the financial world, leverage is the use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment.
Most people are familiar with the financial leverage used in real estate transactions. At one point, he was able to control a large financial asset (his house) with relatively little of his own money. And if you bought your home and the timing was right, you could possibly turn a small amount of money (your down payment) into thousands or tens of thousands of dollars when you sold the property.
Create leverage
Real estate is just one way to use leverage to build wealth. If you look at any real business, you can see examples of leverage. Due to the high cost of starting a business, the business owner will usually borrow money through the sale of stocks or bonds. Smaller business owners can finance their business using Visa or MasterCard, a home equity loan, or maybe even Aunt Sadie. Without tapping into other people’s resources (money), very few entrepreneurs could afford to start their new business.
Another way traditional businesses use leverage is by employing others. While employees trade a day’s work for a day’s pay, the business owner harnesses the efforts of his employees and receives payment for the cumulative and synergistic work of all employees. It is impossible to take advantage of your business if you are the only one doing the work.
build a network
Can you think of any examples of industry leaders who have put leverage to work for them to create their fortunes? Donald Trump borrowed a lot of money to build his real estate empire. Warren Buffett leverages his investor’s money to create wealth for himself (and, hopefully, his investors, too). Oprah Winfrey has harnessed her talent through extensive media syndication. And all true leaders will harness the efforts of their followers to achieve their collective goals.
And that is exactly what we do in our network marketing business. We use the power of leverage to build great wealth by working with a large group of people to get a little done over a period of time. We have heard that to do something we must do it ourselves. This is the exact opposite of what we should be doing with our network marketing business. Andrew Carnegie said, “I’d rather have 1 percent of 100 people’s efforts than 100 percent of my own.” Mr. Carnegie certainly appreciated the power of leverage.
A team of people will always have the ability to accomplish more than an individual can. The power of leverage is there for everyone to use.