Sharing Daily Discoveries About Personal Finance And Business Topics

Business Leveraging Early or Later

financial planning

I had an interesting conversation with a person today where he was saying how he was thinking of the long term immediately when it came to his business and how his plan from day one is to try and leverage himself immediately where he doesn’t have to do everything himself. Example, instead of doing a work for a customer himself he would rather spend say 50% of the profit to hire someone to do it.

Of course the biggest obstacle in the beginning is funding as usually you need to establish a fairly good savings pool to be able to hire people. Especially if you are just starting out and don’t really have that consistent income yet. So in that sense would you still try to leverage yourself that early in the game? I personally think it is better to do it hands on yourself at early stages for cost sakesas well as to make sure that you can run it by yourself if another person is unreliable.

Often people avoid the funding issue by hiring commissioned sales people which can be a good idea as in many ways it is a win-win situation for everyone. I think it is better to start thinking of time leveraging when you find that you are losing customers because you are passing up business due to not having enough hands to help everyone or if an income stream is longer an issue. Just seems less risky overall.

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