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Leverage - Multiply your Output📈
#124 | Mental Models to Live By🧠
Welcome to Wisdom Letter #124
Today we are talking about the mental model of Leverage.
In less than 3 minutes.
So let’s get into it👇
“Give me a place to stand, and a lever long enough, and I will move the world. ”
What is Leverage
Leverage refers to the use of a small tool to amplify the output. It’s like an advantage (tool) you use to have a larger impact with the same effort.
The most elementary example of leverage is using a long lever to lift multi-fold weight with the same effort👇
How it works
A lever long enough can help lift the largest of weights with little effort. The effort required to lift the weight is dependent on the length of the lever and the position of the fulcrum.
In life, identifying the lever (the advantage) and the position (where to apply the advantage) can give you the multiplier effect.
Why it matters
Once you know what your levers are and where to apply, you can double down on building more leverage.
The high leverage activities give you the greatest impact.
The most important aspect is identifying the levers and working towards improving them.
Where it works
Leverage as a mental model can be applied in all walks of life.
People as leverage - Ex. Hiring an assistant can free up time to focus on your business. Hiring employee(s) is the lever and choose what to outsource to them is the fulcrum.
Money as leverage - Ex. When starting a business, those with significant capital can have higher budgets across the board. They can hire better talents, experiment often, scale - all with more ease than their counterparts who don’t have capital leverage.
Media as leverage - Ex. You make a youtube video that teaches people the skill to make money from Etsy. The effort put in making a video is the same whether it is watched by 10k or 10Mn. But the power of the internet gives you the leverage of scaling infinitely.
Code as Leverage - Ex. Making software can help you reach millions and thousands with the same effort. The power of the internet makes code leverage.
Where it doesn’t work
A deep meaningful relationship is not based on one person having a leverage over another.
It is based on mutual love and respect.
It involves complex emotions and cannot be equated for a simple effort to output ratio.
This Week Last Year - 2021
This Week - 2020
Applying Leverage in our Business
Last week we saw the power of leverage work for us.
We launched our service to help people grow their Twitter account - TweetForMe.
It leverages our knowledge of the platform and and our skill to write for the internet.
In this case, the Lever is our Twitter Audience and Writing Skill.
The leverage in writing can be applied to writing for a blog or a social media or plain old copy writing.
But applying this skill to help others grow their audience becomes a differentiating factor - our fulcrum.
Having a small audience on the platform helped us reach so many potential customers. People who -
Knew the power of twitter.
Want to build an audience.
Did not have the time to work on it.
And saw the value we can add.
Within 12 hours we had our first client
Feeling grateful and pumped at the same time.🙏
We look forward to your support and feedback about the service as we #BuildInPublic.
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Ayush & Aditi