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What is a leverage point and how do you identify yours?

March 5, 2017


I am often asked about the origin of the name Leverage Point Advisors. Leverage is a term I have used for years and continue to use frequently. Webster defines leverage as (v) to use for gain. Knowing what to use for gain is what I refer to as the leverage point. From a business perspective, it’s about having a multiplying effect. Once an organization understands what its strengths are and leverages them, its impact on the market and ultimately its financial performance are significant. defines leverage as:

The ability to influence a system, or an environment, in a way that multiplies the outcome of one’s efforts without a corresponding increase in the consumption of resources. In other words, leverage is the advantageous condition of having a relatively small amount of cost yield a relatively high level of returns.

Whether you are a start-up or a division of a Fortune 500 company, our approach at Leverage Point Advisors is the same. We seek to understand every aspect of your business so that we can help you find your leverage point … the thing that is unique to your organization that, when leveraged, will deliver superior returns.

Leverage points vary dramatically by organization. We have worked with clients where the leverage point has been a unique product feature, with another an unmatched distribution network, and with yet another a leadership team with expert market knowledge. To determine what your leverage point is, ask yourself these simple questions:

  • Why would someone want to buy what I am selling?
  • How is what I am selling perceived by my target customer? What makes it different?
  • How does my solution address a customer’s needs better than any other solution available?
  • Do my target customers have unmet needs in areas adjacent to my solution? Can I address those?

Be honest when you answer the questions. Your prospective customers will evaluate you critically, so you need to be critically honest with yourself.

Although this seems like a simple exercise, the difficulty lies in understanding what your customers want/need and how you can deliver a solution that not only will address their needs but also will delight them in a surprising way. If you can deliver a thrilling customer experience, you will be successful. And when you demonstrate that you truly “get” your customers, it gives you the right to communicate with them in a fashion that will deepen your insights and increase your competitive immunity. That’s the multiplying effect of correctly identifying your leverage point.

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