The Good and the Bad of Leverage
While mowing my yard this weekend, which in the past I hired out, it got me thinking about the topic of leverage.
Leverage. This can be a tricky topic for the business owner that is looking to expand their business to the next level. At the end of the day, we all have the same amount of time, and why the different levels of success? It is how we use that time, and leverage is a tool to get back more time to focus on dollar producing activities. There is a caveat.
What if I shared with you that through observation over my years of coaching using the lever of leverage might have created more harm than good. Having personally worked on a team and in leadership roles, leverage was important, yet it was critical to choose the right time to leverage and the right reason. It also means understanding how to leverage whether it is through people, systems, and/or tools. Most associate leverage only with people.
Oftentimes, I will see a business leader go right to leverage to work towards a breakthrough, and they will begin to hire people. The challenge I find is the leader has not necessarily led with revenue in this decision, does not have a plan on what to leverage to these newly hired people, and may be giving away activities that should not be given away. They may also be trying to solve a problem with hiring people when the real answer might have been adjusting current systems or tools.
I also see business leaders leverage stuff away that they themselves don't have a grasp or basic knowledge on what it is they are giving away. This causes issues down the road when they want to inspect what they expect. This becomes difficult because it was not understood what was given away in the first place. Does this mean this business leader needs to know everything before they leverage? No, and it does mean there should be a basic understanding on what is given away and why.
Leverage is powerful, and make sure that you lead with revenue in these decisions. Make sure you truly understand why you're giving away certain activities. Inspect what you expect, and make sure you schedule the time for this to happen. Make sure that if you choose to leverage with people that they actually have the skill set required to handle the tasks (Don't set people up for failure by hiring them for something they don't have the skills sets to address the work given to them.)
If you are thinking about leveraging your business activities, get in conversation with a coach. If not me, find and hire a coach to help you through this process. It will save you time, money, and heartache. Leverage is a powerful tool, and it can be wielded in a way to level up your business, and it can be misused and destroy your business.
Make it a productive day!
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Are you needing to get clarity in your business? Do you feel like you're all over the place and lack focus and direction? This is exactly why you should consider hiring a business coach to provide you direction and different perspectives on your approach to building a successful business. Learn more about the one-on-one coaching opportunity offered to small businesses at Red Hawk Coaching.
Author: Jeremy Williams is the Owner/CEO of Red Hawk Coaching, and #1 Amazon Best-Selling Author. For more information about coaching opportunities with Red Hawk Coaching, visit www.RedHawkCoaching.com.
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