Money Leverage for Explosive Business Growth

Gain 50% More Revenue
Through Leverage

 

I usually think of money in terms of revenue and expenses – numbers on a balance sheet. But a recent project designing a revenue acceleration strategy for a company doing $5MM in annual sales, wanting to achieve $20MM, lead me to a refined understanding:

The most successful businesses are the ones that leverage money more effectively!

What is leverage? Technically, leverage is using what you have, combined with tools and strategies, that enable control or gain of something far greater than otherwise possible.

Most people think of a business as a way to gain wealth. Sell a product for a much higher price than it costs you (leverage), and you pocket the difference. Do this lots of times and you gain wealth. But there is much more to this strategy that can serve EVERY business owner.

Money is a tool that most people don’t fully understand. Most people think of “having” money in their bank account. Their goal is to “obtain” money – to “have” it. But money is only valuable when it is FLOWING. Money sitting in your bank account only gives you the “feeling” of security, calm, ease of mind knowing that when you need it, you have it. But it is the actual “using” of money that brings out it’s power.

You can only gain so much money until you recognize the real power of money: LEVERAGE.

For a moment, agree to look at money as a tool that you MUST leverage. In other words, pieces of paper or metal that have NO VALUE until you trade them for something of value. The first way you, and most people, leverage money is to trade it for food. A quarter is a round piece of metal, doing you no good sitting in your pocket. Leverage it by trading it for a banana at Trader Joe’s, and you now enjoy the experience of peeling away the skin, biting into the slightly soft, white fruit, with it’s gentle aroma and a thousand memories of all the bananas you have eaten on the playground and in school. Your body gains a slight sense of energy and nourishment while your mind enjoys the memory of handing your first girlfriend a banana. (not that banana)

The food leverage: you traded a metal coin for something (a banana) that gave you strength, energy, the experience of eating it, and a few nice memories. To you, the value of the banana was greater than the value of the quarter, so you traded the money for something of greater value. You leveraged it.

A business leverages money by purchasing ingredients like flour, sugar, and yeast, mixing them together and baking them into a product like cookies that they can then sell at a much higher price than their cost. The higher quantity and lower cost source for the ingredients, the more they leverage form, getting more ingredients for less money.

Leverage 1: Raw Materials – buying larger quantities of raw materials lowers the cost of each ingredient

The process of mixing ingredients together, baking, and creating a cookie changes the FORM into a unique product that has more value than the individual ingredients offered.

Leverage 2: Form – buying many single products and combine them into something more complex, changes the form and brings added value.

Identifying new uses, applications, and functions, such as replacing sugar in a cookie with a zero calorie sweetener, enables the same product to be offered to a new customer or different industry.

Leverage 3: Function – the basic product, slightly altered or presented differently to enter new markets or cater to different customers.

Every company has 24 hours in a day. The way to leverage money to get more time is by hiring workers who bring more hands, skills, and abilities to enable the company to accomplish more in the same 24 hours.

Leverage 4: Personnel – the right people added to your team help your company get more done each day.

A company can only talk to a few people directly, so they leverage money to enable more people to become aware of them through advertising.

Leverage 5: Advertising – instead of waiting for customers to find your business, you take your business (or a message about your business) to where your customer is located.

The Internet has become an incredible resource for business owners simply because it enables an incredible leverage – less money, combined with the right tools and strategies, can create dramatic growth in revenue.

Leverage 6: Internet – more than just a website, an Online Marketing Platform enables a company to double and triple their revenue. Easier discovery, user relevant messages, more convenient purchasing, socially validated buying, and other benefits enable an Online Marketing Platform to provide the world’s most incredible leverage!

Good businesses may enjoy a 1:3 leverage where every $1 spent brings $3 in revenue.

Far greater results, with up to 1:10 leverage can be achieved by combining leverage strategies 4, 5 & 6.

Leverage is one of the key strategies behind the success achieved through Torn Together Revenue Acceleration. Powerful results are obtained by combining the following leverage strategies:

Leverage 4 – Personnel. Instead of your company trying to hire 2 accomplished and effective marketers, the same budget is applied to Torn Together. More than 12 experts in psychological message design, impact advertising, social media marketing, and sales performance are dedicated to increasing your revenue.

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Leverage 5 – Advertising. The foundation to everything a company does to market and sell their products and services begins with their CORE MESSAGE. An ad campaign by a car dealer that says “We hear you” is the perfect example of how most companies advertise the message they want to deliver, rather than the message the customer wants to receive. Creating a more effective message, such as “Drive a smile” can bring an immediate increase in revenue.

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Leverage 6 – Internet. A pretty website does not increase sales. An Online Marketing Platform does! Incredibly powerful tools such as Targeting only customers that are interested in your industry, Drip Campaigns where (like water dripping on a rock) timed emails educate and invite your customer to buy, Adjustable Retention where the customer can control how often they get your news/ads, and more than 52 tools and strategies are implemented in concert with one objective: doubling your revenue.

Torn Together Revenue Acceleration.
Leverage strategies 4+5+6= up to $10 in revenue for every $1 spent.

One of the most profitable leverages a company can deploy.

Review the effectiveness of your leverage in the 6 key areas of your company. Our 30 years of experience shows your company can improve the following Leverage strategies:

1: Raw materials – 8% probability this can be improved

2: Form – 18% probability this can be improved

3: Function – 21% probability this can be improved

4: Personnel – 48% probability this can be improved

5 Advertising/Message & Campaigns – 53% probability this can be improved

6: Internet Marketing Platform/Social media – 92% probability this can be improved

The more powerful your company leverages money, the bigger returns you get!

Is your business leveraging money as effectively as possible and for the biggest returns?
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