The Entrepreneurial Freedom Formula: Leverage
Jason was overwhelmed in his business. Scrambling from one crisis to another he found himself resistant to pursue his bigger dreams or make changes in his current offerings that would add revenue. He questioned how he could add anything else to his plate when he was already so busy keeping up with all the projects and clients he currently had. So he hit a plateau around $80k.
What is leverage? It’s when you apply a little amount of effort to generate a massive result. Just like a lever — you move the lever a little and it applies a greater amount of pressure getting a bigger result.
When I work with my entrepreneurial clients to take them into high six and seven figures WITHOUT more stress or overwhelm we explore these three types of leverage: revenue, systems, and time.
The three easiest ways to leverage your income as a service based business owner are to:
1. Charge more
Let’s say you are a coach and you currently make money by coaching clients one on one for $100 per hour. You are limited by time and energy – you can only make as much money as you can work – usually about 10 to 12 clients per week. If you were to double your rates to $200 you would double your income.
Since most people are drastically undercharging giving yourself an hourly rate raise is the most effective place to start.
2. Widen your offer of service
If, however, you charged $200 per person to attend an event or a group coaching process that 10 people attend for an hour program, and then you have exponentially grown your revenue to $2,000 for that one hour.
Moving from one-to-one to one-to-many programs is one of the fastest ways to liberate yourself from overwhelm and increase your revenues while growing your impact.
3. Package your service and automate its delivery.
Now, if you took your process and packaged it as an information product selling it on your website, you could sell your package for $200. With some really good marketing you might sell 20 a week – with no extra time on your behalf whatsoever.
Let’s see how this breaks down:
Give yourself a raise (CHARGE MORE)
$200 x 12 clients per week = $2400 per week
Offer a group experience (WIDEN YOUR OFFER OF SERVICE)
$200 x 12 clients in one hour x 4 hours per week = $9600 per week
Package your information (PACKAGE & AUTOMATE)
$200 x 20 = $4000 per week with ZERO TIME
Do all three and you will exponentially increase your revenue!
Systemizing a process means identifying and documenting each step involved so that anyone could follow the process.
There are two reasons why you would want to create systems so you can leverage your time.
Firstly, entrepreneurs often get in a trap of recreating the wheel each and every time they need to do something. A system lays out a plan so that every time you do that particular task, you don’t have to think, you simply follow the plan.
Systems become increasingly important when a team is involved because if you want it done your way, you will need to document the steps involved.
The second reason to systemize is that you can automate much of what you do. This is a necessary component of building your team effectively. When you are ready to add a person to your team, the system must be in place for that person to step in and do the work effectively and efficiently.
Here are a few examples of tasks can be automated:
- Follow up emails and cards
- Reminders for events, phone calls, etc.
- Consistent social media marketing
- Purchasing your services or products
- Article submissions and press releases
I could go on forever but you get the picture. By developing and introducing systems to your business and virtual teams, you ensure that tasks are done consistently and as you want them done.
The last leverage option, and my personal favorite, is time. You can leverage your own time by delegating tasks to others who can do it cheaper, faster or better. To delegate a task or role is to outsource it to someone else to perform for you. Think of it as cloning yourself to get more done.
There are a few ways that delegating works. One is hiring people to accomplish tasks or projects that you don’t like to do, can’t do or is not the best use of your time. Another is hiring people to do what you do – but do it for less money so you make a profit by outsourcing it.
Successful entrepreneurs have learned to leverage the time and talents of other people to get things done. And Jason? Jason implemented all three of these techniques and is well into the $500k per year revenues. Happy and stress free he and his wife take lots of exotic vacations and live in a beautiful home in Southern California. Leverage is your key to real freedom.
Which of these three leverage techniques could liberate you the fastest? Share what you’d like to focus on in the comments below!