Have you ever heard of the phrase \”do not work hard. work smart\”?
If you have then you understand that the highest paid people in the world work smart and not hard on off course they are very smart.
But my question to you is, \”How smart are you?
Well, in the financial world smartness is measured in the ability to create a lot of wealth with little to no effort. In other words having a low input of time, money and energy to create a higher output of money.
To do that you need to ask the 3 questions every smart entrepreneur asks on a daily basis.
- How much energy do you spend to make $1000? Can you spend less to make more? If yes, how? If not, why not?
- Do you need more time to make more money or you can do so with less?
- What about money? Can you keep on investing less to make more?
The common terminology used to generate a higher output (money) from a lower input (time, money & energy) is \’leverage\’.
The more leverage you have, the more money you make. It\’s that simple. And as an entrepreneur you should always be thinking about leverage in whatever you do.
The following are the most important areas for creating leverage
- Product/Service creation: You should have a system that creates products in less time, money & energy. That is why BIG industries have sophisticated machinery to do just that. You also need experienced people to work for you. The more experienced people you have the more time you save (that is if your people are under good leadership).
- Marketing & Sales: This is where most companies make a huge mistake. I have discovered that there are 2 extremes when it comes to leveraging time and money with respect to marketing. The first extreme leverages time by putting expensive ads which get high viewership but very little response which makes them lose a lot of money. The reason they get very little response is because of their lack of knowledge in constructing these ads. The same mistake also applies with the so-called \’ad experts\’ which I\’ll go into detail in the coming posts. The second extreme is having a company which leverages money by hiring cheap sales people who go out to sell door to door which brings in results (although minimal) but the amount of leverage is small unless they have an army of experienced sales force.
To achieve maximum leverage with marketing you need to own a system that is both cheap and saves you time and brings in a lot of money.
This post is an example. This post could be read by 100,000 people right now and I only have to write it once and LinkedIn software does the rest.
I might be on a vacation right now in Hawaii having my coconut drink while you\’re reading this.
The great thing is that its both cheap & time consuming.
3. Cash Register:
The process of payment should also be very simple. M-pesa, Tigo Pesa and other easy money transfer can be used if you\’re dealing with paying customers who aren\’t near your shop/office.
If you sell products online you will need a merchant account which can accept credit or debit card information from your prospects that will be depositing money in your bank account while you\’re sleeping.
4. Delivery System:
The delivery of your products should also be simplified. If you sell tangible products that need to be delivered at your customer\’s house then you might consider outsourcing the packaging and delivery unless your company is BIG and have enough resources.
There are other systems you can own that can create leverage for you but I would like to stick on marketing because this is where most companies fail at and it probably is the most important part that you need to pay attention to.
If you don\’t get prospects, you don\’t get customers. If you don\’t
get customers, you don\’t make money and if you don\’t make money all the other leverage points are useless.
So from now on I\’ll be concentrating on Marketing and how you can improve your marketing and how to make it strategic in such a way that you invest little & make more and more and more… and more.
It\’s your time now, let me hear from you. Please, if this post found valuable for you don\’t forget to comment something below and share with your friends on Facebook, Twitter and LinkedIn. Sharing is Caring.
Your Mastery,
Lusabara Essau
