Leverage happens when something that you had to do is now done by someone else without you doing anything for it.

We all know that to have an output, we need to have input. Without any input, there is no output. This is just basic physics.

In business, we have inputs, outputs, and goals.

Inputs are activities we do every day. Outputs are the results we get. And goals are what we set, usually tied to a time frame.

The ideal scenario is to have the result as close as possible to the goal we have set. For that to happen, we need more output. And to have more output, we simply need to have more input.

Now there are two ways to have more input:

  1. You can work more. But there is a limit to this. Everyone has only 24 hours a day, so even if you work all the time and do not eat or sleep, you can not work more than 24 hours.
  2. You can work more, + you can have other people to work in parallel with you. With this, you can overcome the limit of only having 24 hours a day and increase the input. This is what we call leverage.

So what leverage does is to help you overcome the limit of time and increase the input. When you increase the input, the output increases, and the results get closer to the desired goal.

Let me give you a real example from what I recently did here at RealPars.

So we have this new live class format. We invite industrial automation experts to have a short online live class on our platform and teach something practical to our members.

To do this, we need to find these experts, have a call with them, and if there is a match, then we need to onboard them on our platform. This onboarding involves things like getting an image from the expert, bio, description of the live class, and things like that, so we can add it to our platform. We also need to test things up before the live class to make sure everything works properly.

I did the first few onboarding myself. Then I created a writing for a team member and asked them to do this on my behalf.

Now this onboarding thing happens without me doing anything. And it frees my time to do more things. So with this, I could increase the input, which increases the output, which gets the result closer to the desired goal. It is that simple.

Here is another leverage example from my personal life. I have this lady who comes to my apartment every two weeks and takes care of things like cleaning, doing the laundry, and ironing. This will take her about 3 or 4 hours each time. If I want to do the same things, it will take me at least a day. But now these things happen without me doing anything for it. And I can use that time to do other things. This means more input, more output, and gets the result closer to the goal. This is leverage.

Leverage is not only for managers. Anyone at the company can create leverage. This is simple. All you need to do is do that thing a few times, write how to do it, and then give that writing to someone else. Now they can use the writing to do the same things for you while you are not doing anything for that. This increases your input. This is how companies grow. This is leverage.

We do this leverage thing in business and life sometimes without even knowing it, but my goal with this writing was to make this more clear for your brain so it is easier for you to notice it next time and use it. Using leverage is the only way you can have more than normal in business and life. Use leverage.