Leverage is a better word for Outsource. Did you know that when you buy a business you are essentially outsourcing an entire operation all at once? It may have only two employees but you just acquired and outsourced a whole stream of income in one fell swoop so that you can move on to different projects. What could be more intriguing? I’ll tell you what could be more intriguing. That you can actually outsource the process of buying a business. So you can outsource the outsource, er, well, you get the idea.
Now, if you bought a business you did not just go out and build a business from scratch and deploy outsourced workers which takes x number of months or years and x amount of money. You just acquired an operation which has on site employees and throws off cash flow. That’s leverage. Big difference. Outsource: you pay. With leverage: you receive.
Why is this important? Well for one thing building wealth depends largely on how well you leverage your time to generate cash flow. The best way to leverage your time is by leveraging other resources, such as people and money (OPM). You can tell I love leverage. That is why leveraged buyouts are so efficient at building wealth. Because there is triple leverage. Leverage people to leverage a company to leverage an income stream. Outsourcing is ONLY ONE of the ways in which you can leverage your time. Ever heard of the phrase “Time is Money” ?? Well, we need to leverage our money too. Next: Leveraged Outsourcing?
