Archimedes – one of the greatest mathematicians who ever lived – once proclaimed:
“Give me a large enough lever, and a place to stand, and I can lift the entire Earth.”
At the time, he must have sounded like a crazy person…
…An old bearded dude claiming that – with nothing more than a stick and a hill – he could be as strong as Atlas.
But he proved all his naysayers wrong.
By single-handedly using leverage to launch a huge ship into the ocean – a feat that would have taken hundreds of men without leverage.
It Was An Idea That Changed The World
Archimedes had discovered that – through leverage – a little focussed effort could get many times the typical result.
This is where the term “business leverage” comes from. While we don’t see physical poles or “levers” in business leverage, the principles are the same…
…A little bit of time, effort, or money invested today provides more than its value back – in saved time, saved effort, saved costs, or gained profits.
The key is to find a point of leverage.
Who Was Smarter: Al Gore, or George W. Bush?
Al Gore has a reputation for having a colossal intellect. George W. Bush has a reputation for being a bit of a doofus at times.
But – as a campaigner – Bush knew the importance of leverage.
During the 2000 US presidential campaign, Al Gore famously boasted he had personally designed his campaign logo.
His opponent, George W. Bush, retorted “I didn’t.”
Instead, Bush got out of the way and focussed on policy and campaigning (the things that mattered, when it came to winning the presidency.)
Knowing that – is it any surprise who won the 2000 Presidential Election?
Overvaluing the Unimportant
As business owners and marketing managers, we tend to overvalue the unimportant – and ignore the things that truly matter.
It rarely matters if your logo is light blue or dark blue; or if your business name uses the word “professional” versus “expert”.
So stop splitting hairs on those things – and pour that wasted time and focus into the things that really matter!
What Really Matters?
Assuming business growth is important to you, here are the 7 things that matter:
- Suspects – the number of people entering your store, or visiting your website.
- Prospects – the percentage of suspects who enter the sales process (speaking with a sales assistant, opting into your lead generation offer, etc).
- Converts – The percentage of prospects who open their wallets, and commit to purchasing from you. Your customers!
- Items-Per-Sale – The average number of items a customer purchases in a single transaction.
- Average Item Price – The average price of items purchased by customers.
- Transactions per Customer – The number of repeat sales a customer makes (typically per year).
- Margin – The profit margin on products or services sold.
There are the places where you get true leverage in your business: where a few hours of effort, a few dollars invested, or a few clever thoughts put into action can generate thousands – perhaps even millions.
These are the 7 key places to find leverage in your business, and kick-start growth. And they’re the focus of our white paper: he 7 Levers and the Growth Paradox.
Make sure you grab a copy. While you’re reading this, others are digesting the content in the white paper, and are already beginning to apply the lessons they’re learning to grow their business.