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Now let’s study leverage a little closer. If you like gardening and cutting yards. You start a grass cutting business by agreeing to chop your neighbors lawn for $20 7 days. You find that it takes approximately an hour to cut his front yard. You go down your block and know that there are a few other homeowners that want to have their lawns cut for $20 dollars 1 week. By selling yourself, you add more customers in your business. Soon you possess a thriving business and are generally cutting about eight lawns a day and earning $160 ($20 x 8 hrs) conclusion. You do a congrats and obtain several referrals to your lawn cutting business.
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Then companion suggested opening a go shopping. Providing her space to sell her art; and house the hundreds of pieces making use of her den. Sales at fairs were poor. But worse at a shop. Less than $100 in one week. Forcing her to regularly use personal savings to make biz profitable. A year into her two year lease, she’d closed her biz doors for very. Her inventory, sold for pennies with a dollar, for you to some paving company who broke it into small bits to make new bare concrete.