{"id":2167,"date":"2010-08-05T09:36:43","date_gmt":"2010-08-05T13:36:43","guid":{"rendered":"https:\/\/www.thegrowthcoach.com\/central-ohio-north\/lack-of-leverage-a-flaw-in-many-business-models"},"modified":"2010-08-05T09:36:43","modified_gmt":"2010-08-05T13:36:43","slug":"lack-of-leverage-a-flaw-in-many-business-models","status":"publish","type":"post","link":"https:\/\/www.thegrowthcoach.com\/central-ohio-north\/lack-of-leverage-a-flaw-in-many-business-models","title":{"rendered":"Lack of Leverage \u2026 A Flaw in Many Business\u00a0Models"},"content":{"rendered":"

Because I am both a business owner and business coach<\/a> (I know, a strange combination), I was asked to submit a sample overview of a \u201cKey Lesson Learned as a Business Owner\u201d<\/strong> to a national business magazine. \u00a0I\u2019m pretty sure I got it there on time \u2026 reporter\u2019s can be quite demanding.\u00a0 That was over a month ago and I never heard anything back.\u00a0 Such rejection brings back all kinds of feelings for me from more than one high school dance \u2026 ouch<\/em>. \u00a0\u00a0Anyhow, I figured why not share one of my biggest business mistakes with my understanding and supportive Growth Coach Blog readers. \u00a0Who really needs Entrepreneur Magazine anyhow?<\/em> OK, enough sour grapes.<\/p>\n

So what was a key lesson I learned early on as a business owner that could help my blog readers?\u00a0 That\u2019s easy \u2026 get leverage in your business!<\/strong> Stop trying to do all things on a one-to-one basis or on your own.\u00a0 \u00a0Stop being a Chief Everything Officer<\/strong>.\u00a0 Stop being the information and decision-making bottleneck in your business.\u00a0 Instead, learn to get the most you can out of everything you do and have\u2026 maximize your return but minimize your investment. \u00a0To me, leverage is creatively finding ways to maximize your earnings while minimizing your time, effort and risk.<\/strong> Got leverage?<\/p>\n

There are multiple ways to get leverage (financial firepower) into your business.<\/strong> You can do it with people, technology, systems, methodologies, marketing, new service approaches, other people\u2019s ideas and money, and\/or adjusting your business model.<\/strong> To cover some of the more common ones with greater specificity, you can derive income off of other people\u2019s efforts (hire your first or hire additional employees or independent contractors), utilize new technologies or methodologies, put business systems in place to replace your doing everything, or simply adjust your approaches and business model.\u00a0 Few small businesses truly have leverage.\u00a0 Early on during my entrepreneurial journey, I was no different.<\/p>\n

When I first got into business coaching in 1992, I helped small business owners achieve greater success and balance but did so strictly on a one-to-one basis.\u00a0 For 18 months, I was flying high and loving life until it dawned on me.\u00a0 I was simply swapping my time for money <\/strong>\u2026 it was more like a job than a business.\u00a0 Most consultants, coaches, advisers, repair people, doctors, home service people, etc. have the same business model and with a similar flaw \u2026 no or minimal leverage.<\/strong> How about you?<\/p>\n

While I loved business coaching, and still do today, back then\u00a0I could only serve so many clients in a day, had an income ceiling, was perpetually exhausted, and had NO LEVERAGE.\u00a0 Things had to change \u2026 and for things to change, I needed to change my thinking and mindset. <\/strong>I had to expand my possibilities.<\/p>\n

I wanted a better way to manage my business and life.\u00a0 Don\u2019t we all?\u00a0 The critical question I finally asked myself was, \u201cHow could I serve more clients, provide more value, earn more money, and work less hours?\u201d<\/strong> I know \u2026 that was a complicated question and I was demanding a lot.\u00a0 But empowering questions help you uncover empowering solutions.\u00a0 Thank God I wanted MORE Success and MORE Life<\/a> \u2026 because that\u2019s exactly what I asked for and what I got.\u00a0 \u00a0Don\u2019t you deserve the same?<\/p>\n

It hit me\u2026I could either add employees (for family\/lifestyle reasons back then I declined) OR instead of doing just one-to-one coaching, I could change my business model\/methodologies and develop a GROUP coaching process. <\/strong> Why not develop a coaching process that enabled me to serve multiple clients at the same time in a group workshop format \u2026 and for multiple years?\u00a0 Why not coach a roomful of clients instead of just one at a time?<\/strong> These empowering questions opened up a much more profitable path for me as a business owner and a more balanced life.<\/p>\n

Ask yourself the same type of question, \u201cHow can I serve more customers, provide more value, earn more money, and work less hours?\u201d\u00a0 Keep wrestling with that question until you get some profitable answers, even if it takes days. \u00a0 Odds are your answers will touch on leveraging people, technology, systems, methodologies, marketing, new service approaches, other people\u2019s money and ideas, and\/or adjusting your business model.<\/strong><\/p>\n

For me, that question changed the course of my business and life.\u00a0 I designed a modified coaching process, followed the group-coaching workshop path, and business took off.\u00a0 Instead of driving around everywhere and only coaching 3-4 clients per day, I could coach a dozen or more clients at the same time and at the same location.\u00a0 Revenues and profits more than tripled.\u00a0 Because of leverage, I could now serve hundreds of clients each year instead of dozens.<\/strong> Since it was in a group format, I could charge clients less and that helped me attract even more clients.\u00a0 While it was more affordable for them, it was also more profitable for me \u2026 LEVERAGE \u2026 serving multiple clients at the same time. <\/strong>Everyone was happier.\u00a0 Even the clients loved bonding and collaborating with other business owners, sharing best practices, and serving as accountability partners for each other.<\/p>\n

In fact, others took notice and wanted to replicate my coaching process.\u00a0 Gary Green,\u00a0a veteran franchisor, convinced me to develop The Growth Coach<\/a> into a franchise model.\u00a0 While I was fearful of this strange business model (franchising), I quickly recognized once again the power of leverage.\u00a0 I could help others achieve their entrepreneurial dreams by helping them to become business coaches so they could in turn help countless small business owners in their own communities throughout North America.<\/p>\n

These franchise owners\/business coaches<\/a> would leverage our group coaching process, operational systems, marketing systems, and trademarks.\u00a0 For that, we would get a very small percentage of their income as royalties \u2026 good leverage \u2026 deriving a small income off the efforts of others leveraging all of our proprietary processes, tools, and trademarks.\u00a0 Our franchise owners were happy with the financial leverage that came from the group coaching workshops and their clients were happy to participate in an affordable and supportive group format. \u00a0Everyone is better off.<\/p>\n

We now have over 135 franchise owners (business coaches) in over 150 markets throughout North America and they too are helping several thousand small business owners every year develop more leverage in their businesses … teaching them to change their mindsets, \u00a0behaviors, habits, and strategies in order to earn more, work less, and enjoy richer lives.\u00a0 Leverage has come full circle.<\/strong><\/p>\n

Lack of leverage was one of my biggest initial mistakes and hard lessons.\u00a0 Not any more.\u00a0 Let me ask you a simple question, \u201cGot Leverage?\u201d <\/strong><\/p>\n

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