The Lever, the Fulcrum, and the Impact
“Give me a lever long enough and a fulcrum on which to place it, and I shall move the world.”
Levers are machines used to increase force. In other words, a lever multiplies the impact of our efforts.
Applying a lever to your business is the key to decoupling income from time. Put in the effort at the front end and reap continuing benefits over time with less additional effort. While there is no such thing as purely “passive income” – significant investment or effort must be applied before the opportunity for passive income arises—the application of leverage to that investment or effort creates the conditions for residual, low-input income. Some levers to apply:
Automation: Some tasks can be performed with minimal human assistance, so each performance incurs little or no incremental cost. Automation may involve software, but it can also be something as simple as a checklist.
Delegation: You are the most expensive resource in your business. Delegate tasks to less expensive resources, whether internally with an employee or externally with a contractor.
Systematization: Processes and systems create efficiencies whether delivered by you or by others.
Reputation: When you become the “go to” person in your field, you get the long-term residual benefit of opportunities that come to you effortlessly.
Prevention: “Measure twice, cut once,” so you catch mistakes before they happen. Preventing an error can be many multiples less expensive–in time, resources, momentum, and reputation costs–than fixing it later.
Specialization: It just makes everything simpler. You get high quality referrals. Your expertise compounds over time.
Education (Yours): Don’t reinvent the wheel. Leverage the wisdom of other experts to understand principles deeply and then apply them again and again.
Education (Theirs): Every person you teach becomes another lever for your impact.
Documentation: Write a book, course, or white paper once and use it to serve many.
Yes, leverage is the driver of increasing profits, aka scaling. But the beauty of leverage is how it amplifies our impact.
Profit is just the minimum requirement to stay in business. Having an impact is our reason to be in business—to spread our message, to be of service to others, to support our loved ones.