Four Types of Leverage in Your Business (Low-High)

A simple definition of leverage: To use something that you already have in order to achieve something new or better. Digital businesses are unlimited (code, software, scale). But media has even greater leverage (look at influencers who've launched beauty brands, liquor brands, or monetized podcasts/YouTube/TikTok).

Hear the story of my "side hustle" from before that term existed. It was a low leverage but delightful business in 2009, an Etsy bakery where I sold jar cakes with a 1-month shelf life. #USP ... My shop was Adore a Jar Bakery (this tweet thread has the story I tell in shorter text form here.)

Find out why physical businesses without code or media have lower leverage, and why SaaS has almost the ultimate leverage. But your goal in building a digital business shouldn't necessarily be getting a million users or achieving unicorn status. Even though or society worships tech gods and software is eating the world. Yes I have a SaaS startup (2.5 years into it), but oh did I love my little bakery.

Small businesses that are profitable and solid with revenue and customers are the backbone of our economy in many ways. You should be proud if you have one. Many "entrepreneurs" have an idea with no product or results. Ideas are worthless without execution. A few years ago you could sell a pre-revenue idea to investors and get millions in funding. Does it make sense? Maybe. Because VCs are betters playing a numbers game. Anyway:

4 types of leverage in business, in increasing order (see tweet for more):

1. Labor - hire people
2. Capital - deploy others' money or your money
3. Code (software) - 1 time build, infinite users
4. Media - 1 time content, potential millions of impressions, build brand, build SME, build audience to monetize later

Leverage idea and list of 4 types via Alex Hormozi's podcast, The Game w/Alex Hormozi - this is a great episode, and check out all his content for business, marketing, sales ideas and tips: "Attention is the New Oil".

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