Not Making Money In A Booming Economy

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Ironically, in the midst of a booming economy, times are tough for a lot of people! Interest rates are going up, petrol is at unprecedented prices and is set to soar even more and bananas are unaffordable in Australia.

Never in our history in Australia have we been so financially geared with personal debt. And while there's record employment, a lot of people are struggling financially.

When interest rates went up last week there were people on TV lamenting that they'd have to tighten their belts yet again, cut out all discretionary (and not so discretionary) spending and maybe even lose their homes.

Yet there are countless other people who are raking it in. So what are they doing that these others aren't? Could it be that they understand something about finance that the others don't? Or is it that they understand the concept of leverage?

We all have the same number of hours in the day. So why is it that one person earns so much more than another?

While there are probably many reasons, here are a couple of my favourites.

Provide massive value and leverage your time.

So what do I mean?

Let's take value: The more important and urgent the problem, the more you're likely to pay to get it solved. Chances are that the fixer also has a great deal of skill that's been acquired over a period of time.

Think brain surgery. If you've just been diagnosed with a serious, life threatening condition, you'll FIND the MONEY to engage the best surgeon you can afford. After all, your life's at stake.

So the surgeon provides lots of value and can charge accordingly.

However, the surgeon has to rely on himself to make money. If he doesn't turn up and perform, he doesn't get paid.

If you're self employed - you may be an accountant, plumber, solicitor etc., you have the same problem. If you don't turn up, you don't get paid. You also have to do everything that earns you money yourself.

This is where leverage comes in.

Andrew Carnegie, the famous Steel Magnate, once said, "I'd rather have one percent of the labour of one hundred men than one hundred percent of one man".

You can't be everywhere, doing everything. With leverage you can accomplish far more than you could by yourself.

Every large business operates on the concept of leverage. That's why you have departments to do things, staffed with lots of people.

So the surgeon can hire lots of other surgeons and start an organisation. He can then leverage his time and get a percentage of what the other surgeons do. The plumber hires other plumbers and starts making money of what they produce.

Figure out what makes you money in your business and do more of it. Take all the other tasks and outsource them! Outsource your marketing, outsource your bookkeeping, outsource your cleaning etc.

There are a couple of traps though...

1) If you are going to leverage your time and outsource, you'd better learn how to move from being a "technician" in your business to becoming a "business owner". If you're not familiar with this concept, I strongly suggest you read Michael Gerber's books like the E-Myth Revisited etc.

2) Get your mindset right.

One of the main differences between successful and not so successful (and this applies to money, health and relationships), people is mindset and attitude.

Keep fresh by educating yourself in new ways of doing business, new marketing and sales methods. Join a mastermind group and above all TAKE ACTION.

Article Source: http://depositarticles.com/

Rashid Kotwal is an international speaker and author who specializes in on-line and off-line strategies for direct response marketing and sales optimization. He works with sales organizations want to get more business, faster and with less wasted effort. You can find more information at Sales & Marketing Consulting and Get Clients Online Fast. Copyright Rashid Kotwal.

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