Leveraging Employees

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In many circumstances, it may not be as easy to quantify the financial return on a Leveraged person as it was in a law firm for example. Often, there may be equally important qualitative benefits in addition to the quantitative ones. For example, consider these benefits:
1. By leveraging someone else, you are able to spend your time performing tasks that create greater profits.
This is a quantifiable benefit. Using the example above, by having associates do the work, the law firm partners can also do what they are best at bringing in new business. This is likely a “highest and best use” of their time. What is your “highest and best use?” You already have someone to sign in patients, take vitals, file charts, do the scheduling, and other valuable tasks. Is it possible to pay someone to do any more of the less profitable tasks you currently perform? If so, you can take advantage of Leverage!
2. By leveraging an employee, you are able to spend your time doing things you WANT to do.
This is a qualitative benefit. If you could have employees perform more of your work, perhaps you could spend time doing something you prefer to do, such as playing golf or spending time with your family. This is not being lazy—it is using Leverage, not for increased profits, but for a better life. What is more important that that?
3. By leveraging experts, you are able to spend time on your own areas of expertise and save money.
As we will see in Lesson #3, leveraging advisors who have more expertise than you have in certain areas is fundamental to long-term success. While it is possible you could learn to become a CPA, money manager, or an attorney, learning these jobs would not be time well spent. This would take you away from things that are a good use of your time.
Leveraging people who have expertise is very economical. You can pay them less to help you in certain areas than what it would cost you (in time, money, and aggravation) to learn these fields yourself and then try and do the work yourself. Bill Gates didn’t learn how to build computers and George Lucas didn’t learn how to make action figures, yet they both benefited from someone else’s expertise in those areas.
Now that you see how important it is to Leverage employees, let’s learn the importance of leveraging advisors.

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