To grow you need leverage. Sure you can grow to a certain point without any leverage but you can't get very big. Sooner or later you are going to need more capital, more personnel, more knowledge, or more technology (that could be anything from a PDA to a 100 Ft Crane) because you have limitations.
We are going discuss the first three forms of leverage in the list.
Money leverage allows you to grow quickly. If Donald Trump didn't use leverage there is no way he could fund the projects like the The Trump International Hotel and Towers that are going up all over. He will probably make hundreds of millions of dollars from using this leverage. Without his financing it would not be possible for Trump to fund the construction by himself or even if he could he couldn't run as many projects at one time.
Personnel leverage frees up your time to do what you are best at. If you are great at selling or putting together deals and it gives you a ton of energy, you should be doing that, not answering the phone and filing documents. You also have to look at what your time is worth. I don't go out and fix anything on properties any more. I call Tim, my handyman. My time is worth more than the $12 an hour that I pay Tim to do it (He also gets it done twice as fast and does a much better job than I would do). I make my money putting together deals, looking at the numbers and being creative. The more time I spend outside of doing what I enjoy and what I make the most money at, the less money I make. It seems simple, but you would be amazed at the people that don't know what tasks make them the most money.
What activities give you the most energy and make you the most money? Find a way to do more of that and less of the other stuff.
Knowledge leverage can be explained as using a mastermind group. A good definition can be found here. Some interesting things happen when you get around people that have a common goal and all contribute for the good of others. First, there is a synergy of ideas. You may have an issue that you are working through and bring it up to the group and someone will have that nugget of information that is exactly what you needed to get you past the issue that you were working on. When you are thinking about forming or joining a mastermind group, I highly encourage you to surround yourself with people that are where you want to be. Try not to surround yourself with people at or below your level in whatever it is you are trying to achieve. What happens when you surround yourself with people is that you move toward their level relatively quickly.
If you want more information on the Mastermind Group, I highly recommend Napoleon Hill's book Think and Grow Rich (Link to Amazon) and the Audio. Read and/or listen to it as many times as you can.
Let's also note that leverage can be a double edged sword if you don't know what you are doing. If leverage is used without the proper knowledge to control the situation then you can have trouble. Property can be over leveraged, you can have an employee or consultant that creates more work instead of making things easier, and if you get in the wrong mastermind group it can take you in the wrong direction or kill your dreams instead of foster them.
How can you use more leverage to grow, make more money, have more time for yourself, and live a more fulfilled life?
