Entrepreneurial Leverage™: The Secret Factor That Underlies All Achievement, Wealth and Fortune

Written By Gary Spirer Published July 14th, 2010

Did you know that the top1% earn 20% of the income and own 30% of the world’s wealth? So what do the top 1 % of wealth builders seem to do that the other 99% don’t?

There is a formula to amassing great wealth that can be learned and put into action immediately. Throughout the ages to the present, the greatest minds and the greatest wealth builders have used a secret factor called Entrepreneurial Leverage. Leverage is: less is more. Leverage can also be defined as making a disproportionately high rate of return from a relatively small input, effort or investment. Leverage is borrowing money, resources, talents, knowledge, and people to grow the value the entrepreneur sees ahead of the market (their vision).

Each of us has a calling or purpose. Research shows that almost 70 % of people are mismatched with their jobs, careers and their companies. They are not living the life of their dreams.

To be entrepreneurial, you have to realize the government is not going to make you wealthy. Rarely, will you grow wealthy with stocks, bonds, houses or trading forex and commodities (unless you are managing other people’s money).

You must learn that jobs do not provide security or wealth. Investing, owning your business or income producing real estate has been where wealth has been created. Being an executive in a growth company, getting a salary and options, helps. Being a celebrity or an employee of a growth company at the beginning is another way. Managing money for others, as in money management or hedge funds, is also a path.

However, when you boil it down, most people are left with companies and income producing real estate as options. But, you say, 55% of businesses fail within the first 4 years. Well, just think of how much you have lost in the stock market, your 401K, and your house. On average, people are down 25% to 40% if they are honest with themselves. Now that’s risky.

Do you think your financial planners or stockbrokers know much more than you? Few do. Otherwise, you’d be making money, not just them.

Fact: the average American has less than $20,000 investible assets. However, the top 1%, as stated, earns over 20 % (that’s 20 x the average!) of income and control over 30 % of the wealth (that’s 30X the average!). Do what they do? Utilize the art of leverage as explained in the following:

You need to think of leverage as a means of concentrating your power. If you focus the sunlight through a magnifying glass, it will burn a leaf. When you use a crowbar, you focus your body’s energy in order to pry open objects that can’t be separated by human hands alone.

We transfer the focus of energy and force in such a way that we can use a much smaller effort to get an optimal result or what I call positive leverage. In today’s age of speed and the Internet, you must achieve positive leverage to stay in the game.

However, without that concentration, you will achieve negative leverage, where much hard work will produce disproportionately small returns. When you are in a negative-leverage situation, you are doing the same things over and over with little or nothing to show for it. You experience diminishing returns. Negative leverage becomes enormously frustrating and energy draining.

Most people and companies fail before they start toward achieving a vision or goal.

Let’s take a company as an example. Most companies fail before they get out of the gates because they do not offer a compelling solution that in the minds of their potential customer is a high priority—a must-have.

What I am saying is that most failures can be traced back to the preparation. Famous golfer Jack Nicklaus stated that 85% of the golf swing is in the setup.

Just as Jack Nicklaus learned the fundamentals from his coach, the greatest wealth builders and minds learned through apprenticeships.

You can trade your skills, knowledge and talents for a piece of the action (ownership):

1. Go on the internet and find companies that align with your purpose.
2. Call them.
3. Tell them you’ll work for free to build their business. Most need help. Many of them can’t market, sell well or write very well. You will learn on their dime to be aligned with your purpose. You will earn a piece of the action or more skills.

Sound crazy?

Here are 4 more success strategies:

1. Have an outrageous, unreasonable goal! Small goals won’t sustain you.
2. The key to wealth is relationships. Be a networker. Listen for opportunities.
3. Welcome the craziest ideas. Most people immediately reject an idea; instead, do the opposite. Why? You start to learn what people are thinking and how they present themselves. You may just find the opportunity of a lifetime.
4. You can match up those with money to those with opportunities. That is what the wealthiest people in the world do. Think Goldman Sachs.
Soon, you will see more opportunities than you ever dreamed.

Where do you go to find the best deals?

Go to seminars, many are free. There are angel capital networks where entrepreneurs with their deals meet investors. When you go to these events often you find that it is a matching game like dating. The idea is to put together the right matches.

Entrepreneurs frequently commit to things and then run around to find the resources. Investors typically commit and often don’t have the full amount of the capital that they are committing. This means that there are gaps between entrepreneurs and investors’ resources and capital, which always creates potentially great opportunities for the person or company that can fill in the gaps.

Just remember, there will always be gaps and opportunities in up or down markets. If you miss one opportunity, there is always another.

Jump into the arena. Learn to become comfortable with the uncomfortable, and go for it.

Implement these success strategies and you will have executed the secret factor to wealth and fortune – Entrepreneurial Leverage™.

Go get wealthy! Good luck.

Roger Due

Investing in Your Destiny® & Coaching Program - Wealth Building Summit Dallas, Texas

My name is Roger Due and I am from Albuquerque, New Mexico and I am the owner of the Monsano software company. This has been an absolutely fantastic conference. This is the best I have ever been to.