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November 8, 2024

Leverage, Leverage, Leverage: Why Relationships Matter More Than Knowledge in Business

We’ve all heard the classic saying in property: location, location, location. It’s the golden rule, the thing that makes or breaks a deal. But in business? I’d argue the mantra should be leverage, leverage, leverage.

A Lesson From My Teenage Years

When I was a teenager, I spent my school holidays in a small town in Malaysia. During those holidays, I spent a lot of time with my uncle, who was the chair of the local chamber of commerce. He was incredibly successful and well-known in town—not just for his business acumen, but for his ability to connect people.

He’d bring me along to breakfasts, lunches, and dinners with his business associates. To me, it was a crash course in the power of relationships. My uncle wasn’t just making deals; he was leveraging his reputation, his status, and his network. People trusted him, and they knew that by associating with him, they could get things done faster and more effectively. He had influence, and that influence was his greatest tool.

That’s when I learned one of the most important business lessons of my life: Who you know often outweighs what you know.

Leverage: The Underrated Key to Success

So what do I mean by leverage? It’s not just about using your connections to get ahead—it’s about mutual benefit. It’s about positioning yourself in a way where others see value in knowing you, where your network becomes a source of strength, and where you can influence outcomes simply by being part of the conversation.

In my uncle’s case, he was a master of leverage. People sought him out because they trusted him to connect them with the right people. And in return, his network helped him secure opportunities that may have otherwise been out of reach.

The Connector Advantage

In today’s fast-paced, highly competitive business world, being a connector gives you a massive advantage. When you can leverage relationships, you’re not just relying on what you know—you’re tapping into what everyone around you knows.

This was one of the biggest mindset shifts for me as I grew into my own business career. Early on, I thought business success was all about knowledge—about knowing the right strategies, tactics, and techniques. But over time, I realized that success often hinges on who you know, not just what you know. The more I could build meaningful relationships, the more opportunities opened up for me.

The Power of Trust and Leverage

Let me be clear: leveraging relationships isn’t about manipulation. It’s about building trust. When people trust you, they are more likely to work with you, recommend you, and introduce you to others. Trust is the foundation that allows you to leverage relationships effectively. Without it, leverage is nothing more than an empty tactic.

When you’re known as someone who can connect the dots, solve problems, or add value, you become the person others turn to. That’s the kind of leverage that opens doors. Whether you’re working on closing a big deal, securing a strategic partnership, or even hiring the right talent, trust and relationships are your most powerful tools.

How to Build Leverage in Your Business

If you want to build leverage in your business, it starts with relationships. Here are a few ways to do it:

  1. Expand Your Network – Make an effort to meet new people in your industry. Attend events, join professional groups, and connect with others online. Every new connection is an opportunity to build your leverage.
  2. Offer Value First – Don’t approach relationships with a “what’s in it for me?” mindset. Focus on providing value to others. This could be through advice, introductions, or helping solve a problem. People remember those who help without expecting anything in return.
  3. Be a Connector – Just like my uncle, be the person who brings others together. Whether it’s connecting a colleague with a potential client or introducing two people who could collaborate, being the connector builds your reputation and your leverage.
  4. Invest in Trust – Trust isn’t built overnight. It takes time, consistency, and integrity. Always follow through on your promises, keep your word, and show up for others. Trust is your currency when it comes to leverage.
  5. Leverage Your Reputation – As your network grows, so will your reputation. People will begin to associate you with certain values—whether that’s reliability, innovation, or expertise. Use that reputation to your advantage when forming partnerships or securing deals.

Leverage as a Long-Term Strategy

Leverage isn’t a quick fix; it’s a long-term strategy. It’s not about pushing for what you want immediately, but about positioning yourself so that opportunities naturally come your way. It’s about playing the long game, building meaningful relationships, and ensuring that you’re a person people want to know, trust, and work with.

At the end of the day, business isn’t just about knowledge. It’s about people. It’s about how you can use your relationships to create win-win situations for everyone involved. That’s where the real power lies.

Final Thoughts

So, the next time you think about your business strategy, remember this: in property, it’s all about location. In business, it’s all about leverage. And leverage, my friend, is all about who you know.

The most successful businesses aren’t built in isolation—they’re built on the back of relationships, connections, and trust.

#Leverage #BusinessRelationships #Networking #Trust #BusinessGrowth #PerthBusiness

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