"Leverage" is a concept that has been stuck in my mind for a while now. This concept can be applied not only in business, but also in any aspect of life. "Leverage" refers to using resources in a way that multiplies their effectiveness. According to entrepreneur and investor Naval Ravikant there are 4 types of leverage: capital, people, technology (code), and media.
Some of these resources are more readily available than others. For example capital and people are permissioned i.e. you need someone willing to work with you or give you money. Technology and media are permissionless. These are things you can do on your own. You don't need anyone's permission to start a blog or build an app. They are the most accessible and have the potential to reach the largest audience.
1. Capital
Capital is often seen as the ultimate tool for achieving success really fast. However, acquiring capital is not easy, and leveraging it effectively requires both skill and luck.
In business, having access to capital allows businesses to take risks, invest in new opportunities, new people, and ultimately achieve success. This can be particularly important for small businesses or startups that may struggle to secure funding from traditional sources like banks or venture capitalists.
There are many ways to use capital as a point of leverage for personal development, such as investing in courses or coaching programs, attending conferences or events, or simply purchasing books or other resources that can help you learn and grow. These investments can lead to better job opportunities, higher salaries, and increased job satisfaction.
It's important to keep in mind, however, that money is not the only factor in achieving success. Too much focus on the financial situation can lead to unethical behavior and a lack of concern for other people or your environment. It's essential to strike a balance and consider the broader impacts of our actions, both on ourselves and on those around us.
2. People
No one achieves success alone, and the people you surround yourself with can have a significant impact on your personal development. However, people are also the hardest point of leverage to acquire and manage effectively. Finding the right people with the right skills and attitudes can be a challenge, and even the most talented and dedicated individuals can be difficult to manage. I call them the diva's. They are the ones that are really good at what they do, but they are also the ones that are the hardest to work with.
In business, people are important. They give you the chance to create a product faster and better in a shorter amount of time. However, it's important to know about Brooks' Law. This law is an observation about software project management which states that adding manpower to a project that is behind schedule delays it even further. The idea is that as new people are added to a project, there is a bigger cost of communication and training, which can actually slow down the project rather than speeding it up. This is particularly true for complex projects, where it may take a significant amount of time for new team members to become fully productive. Therefore, the solution to a late software project is not simply to add more people, but to carefully manage the resources and processes involved in the project.
Building a supportive network of friends, mentors, and like-minded individuals can provide motivation, accountability, and valuable feedback. It's important to seek out people who inspire you and challenge you to be your best self. The only drawback is that it can take a bit of time to find the right people. You have to build a relationship with them, this can also easily be broken, so you have to choose them wisely.
3. Technology
Unlike money and people, technology is a point of leverage that is relatively easy to access and often free. All that is required is a computer and an internet connection. Technology has revolutionized the way we live, learn, and grow, and it's almost impossible to imagine our society without the use of AI or smartphones.
With technology, we can automate tasks and increase efficiency, saving time and resources. It also enables collaboration and communication among teams that are geographically dispersed. Additionally, technology provides opportunities for innovation and creativity, enabling individuals and organizations to develop new products and services that can change the world. Overall, technology is a critical component of success in both business and personal development.
There are several great examples of things that we use in our daily lives that are made possible thanks to new technologies:
- Communication: email, video conferencing, social media, messaging, and more.
- Healthcare: electronic health records, medical imaging, and other advanced medical technologies.
- Education: online courses, YouTube, educational apps, digital books, and more.
- Transportation: electric cars, high-speed airplanes/trains, and other advanced modes of transportation.
- Entertainment: Netflix, gaming, TV, and more.
4. Media
The fourth and final point is media, which is a tool that's relatively easy to access and has the ability to quickly reach a large audience. Social media platforms, podcasts, blogs, and video content are all effective ways to connect with new people and keep them interested. However, it's always important to remember that social media can have both positive and negative effects, and it should be used with caution. Newspapers and broadcasters are also options. For example, if you start a company or a new project and you seek a large and diverse audience, you can reach out to journalists as they are always searching for good stories.
Avi Shiffman is a great example of leveraging media for success. At just 18 years old, he became famous for creating ncovidlive19, a website that received over 300 million visits. When the Ukrainian-Russian war broke out, he built Ukraineshelter, a platform where people could offer housing to refugees during the conflict. To get the site mainstream, he reached out to a couple of journalists that he knew from the Covid site, which resulted in a lot of attention thanks to some journalists. Shiffman recently started a non-profit organization called InternetActivism where he tries to help the world with technology.
Conclusion
I think that by these points of leverage you can accelerate growth and achieve goals more quickly. Whether you're looking to learn new skills, expand your network or gain new insights. With technology and media you can already get quite far. Just be confident and think twice before you share something with the world.
If you have any thoughts or remarks, feel free to reach out! I'm always open for discussions or nice talks.
