How can small businesses grow and expand in today’s business environment? What do small businesses have to do to prepare their business for growth? The answers will vary depending on the kind of business, however one frequent factor is the usage or use of leverage. Businesses that use leverage to expand, which is a sign that they are looking to get an edge over the competition in their market. In other areas , the use leverage is essential for business growth and development.
Let’s take a look at leverage in different fields. The first, and the most popular the term leverage is as the utilization leadership coaching of financing or debt to purchase equipment, purchase or to establish the doors of a new facility. “When an organization can be described as “leveraged,” it means that the company borrows money to fund the acquisition of assets. Businesses may also leverage via equity, for example, borrowing funds through investors” (Murray 2019).
Basis for their coaching methodology for their clients
Leverage in financial terms is not the only way that a company can benefit from the concept or use of leverage in order to help make their business more efficient and profitable. ActionCOACH the largest and most popular Business Coaching franchise includes the leverage factor in their coaching methodology in the Six steps to massive Growth. Leverage is the 3rd step in the business mastery ActionCOACH utilizes as the basis for their coaching methodology for their clients.
Be aware that leverage is defined is the use by force through the through an object or lever employed in the manner of the lever” in addition to “use (something) in order to gain gain maximum gain.’ Ultimately, leverage is about getting an advantage.
Successfully apply leverage to your business
To reap the maximum benefit in your business , you have to “systemize the routine” as Brad Sugars, the CEO and founder of ActionCOACH states. The creation of systems allows entrepreneurs to save their self-time, energy and money’. Systems increase efficiency and allow the company to harness information, marketing investment, as well as the abilities of lean portfolio management employees within the company. Sugars says, “Leverage is the concept of ever more with ever less”.
The establishment of systems is the moment when the company starts to run more efficiently. The routine tasks are standardized to ensure that the best methods are utilized to speed up production, less work, and better utilization of resources. Systems enable employees to run the business at a greater capacity. Before you can successfully apply leverage to your business, it is essential to have a solid basis.
ActionCOACH and Sugars provide an outline of the areas that your company must have consolidated in order to ensure leverage can be utilized throughout your business.
1. Vision Statement This is to ensure you’ve set a high-level target for your company over the long run.
2. 2 MISSION STATEMENT The roadmap describes how you will attain the Vision you’ve outlined.
3. Culture Points 3 CULTURE POINTS – The following is an outline that outlines the principles every employee in your business must follow for achieving the company’s goals and objectives.
4 SMART GOALS – This ensures that you have a methodology to achieve results by having specific, measurables, attainable/actionable, realistic and time sensitive goals.
5. Organization Chart 5 ORGANIZATION CHART – This will ensure that you are in the best position for growth in the future.
6 6 The job titles which outline the role and areas of influence that each employee will have to manage and also outlines how employees is judged for their performance.
7. KPIs 7 KPIs – These performance indicators describe the way the team and you assess performance and correlates results with the profits.
8 Manuals and SOPs These documents document the way things are conducted in each department. Use checklists, questionnaires, flow charts, video etc. to record the process, tasks and job tasks in order to produce outcomes.
When an organization has these basic principles in place, they are ready to implement leverage in order to achieve the highest results and gain more efficiency from their workforce. As a lever, you can utilize to gain advantage when lifting an object Utilizing leverage in your company means that you make use of your systems as the lever that will take your business to the next stage. Utilize the knowledge of your team, increase the power of your company data, and use procedures to increase the efficiency of your company more successful. Continuously improve your processes over time, to ensure that your team is able to manage your business even if you’re not there.