3 Ways to Grow Your Business With "Perpetual Leverage"
You'll learn three practical ways to profit from "perpetual leverage" in your small business, starting today.
Why Some Companies Explode Like Rockets While Others "Stay Stuck" We're all told compounding interest is the most powerful money multiplier...
Invest $1 today at 15% a year, and in 30 years, you'll have $66.
At 26% - you'd have a cool $1,025.
Not bad for a measly buck! So it makes sense if you reinvest your profits year after year, you'll grow your small business over 5X in ten years.
But what if you have little (or no) profits to speak of? After all...
You have to pay yourself and cover your living expenses.
You have to pay your vendors.
You have to pay your overhead costs.
And, if you have staff, you have to pay them, too.
In a recession, you're lucky just to be in the black.
The real truth is, many vast fortunes are made from leveraged growth - using other people's money to accelerate business growth.
Fortunately, you don't have to take on massive debt or take big risks to profit from "perpetual leverage.
" Here's three ways to put it to work for your business, starting today...
Perpetual Leverage Tip #1 - Get Business Credit Terms from Everyone Every time you tie-up a dollar in inventory or supplies - or when you're waiting for payment form a client - you're robbed twice.
Not only is that dollar tied-up, but you also can't use it to grow your business! That's why you can't afford not to ask every vendor for credit terms.
If they tell you no, build-up your relationship with them and ask again in 3-6 months.
It's worth it! Consider this...
If your printer gives you 30-days to pay your invoices at zero interest, you could roll-out an advertising campaign every month and pay-off the invoices with your profits - before the invoices come due! Instead of growing your revenues 20% every year, you could multiply them 20% every month! Perpetual Leverage Tip #2 - Give Credit Terms to No One Offering credit terms can boost sales, but if you're under-capitalized, it can also break your small business.
Do you sell services? Don't be afraid to ask for money (or a large deposit) upfront - or have clients escrow funds before you start work.
Often, the peace of mind of working with fewer clients who pay up-front beats the hassle of dealing with many more who pay late - or never.
If you're worried you'll lose business not offering credit terms, offer installment plans instead, where clients authorize you to draft funds from their accounts.
Perpetual Leverage Tip #3 - Learn About Business Credit Credit is the currency of business.
Just as you have a personal credit history and credit scores, your business has it's own, separate business credit identity.
And what your business's credit reports say affect whether vendors extend it credit.
It doesn't stop there, though...
Your company's credit also measures its trust and credibility.
Anyone - like your clients, your vendors or your partners - can get unrestricted access to your company's credit reports.
And, unlike personal credit reports, they don't need your permission, first.
What that means to you is - more business decisions today (and in the future) will be based on your company's credit.
That's why it's far better to learn all you can now about business credit, so you don't leave profitable opportunities on the table later!