Leverage Effect on Wealth Creation

Leverage is essentially achieving more with less of your own resources. Leverage can be using other people’s talents, skills, contacts, credibility and resources etc. Other People’s Resources can also include the use of someone’s office space, trading one service you can provide now for a service you need, bartering your future services or revenues for current use of OPR etc.

It actually takes time to develop the skill of using leverage. It requires a departure from conventional thinking about how to get things done. Other People’s Resources are often available when conventional routes of Other People’s Money are not. You could say OPR is an indirect form of Other Peoples’ Money. Instead of using your money to grow your business, with OPR, you build your business by using resources paid for by other people.
With OPR, you can build a business by using/leveraging resources directly paid for by other people. You are essentially indirectly using OPM that went to develop or acquire that resource. A great example of OPR at work is when your outsource functions of your business to another company to provide. I like to look at OPR as an asset that you don’t own, but one you can still control. Operated correctly, and under certain circumstances, it can be a better use of money to control an asset than own it.

Thankfully, with the advent of the Internet, the world is literally at your fingertips. In no other time in the history of the world has there been such opportunity to use OPR. You can take advantage of online technology, products and tools that companies have invested huge amounts of money to develop; and you benefit from their use for a tiny price in relation to how much it costs that company to develop and continually service.