A company needed leverage for it to be a success and to function well. How can you apply leverage to a company? Leverage can be viewed as a solution to do for a problem or task in a different way or approach that is more effective and efficient producing same result. Leverage is to create balance like spending should be levelled with income. To understand leverage approach in a company let’s take a look at employees’ mindset. Employees increase their income by trying to increase their rates than their time.
That’s why you are sometimes pushed to have a degree and add masteral or even PHD for the purpose of increasing your rate. There is nothing wrong about it but let’s try to look at another mindset. The leverage mindset or entrepreneurial mindset. In this mindset the leverage is included in the formula to get the income. In employees mindset it is rate and time. Now rate, time and leverage. It means you will find other ways to increase your income without focusing to change only the rate.
You can say that the leverage added is employees own effort. As employees leverage their income to their employers businesses leverage their income through employees. Investors leverage their income through their money invested in the company and leverage trough employees that generate income. If the company knows how to use leveraging then they can create a suitable environment that propel company’s performance. When doing you can also apply leveraging.