029: Leverage & Mechanical Advantage in Community Economics

Feb 26, 2018

Understanding Mechanical Advantage is Critical to Building Strong Community Economics

Cool kids, come have a seat at the nerds table! In this episode, we dig into the comprehensive definitions of Resources, Levers, Leverage, and Mechanical Advantage so we can apply the concepts to build stronger Community Economics.

Strap on your suspenders, hike up your pants, and find your old set of taped together glasses.  It's time to nerd out!

Key Definitions

Resource

• A source of supply or support
• A natural source of wealth or revenue
• A source of information or expertise

Lever

• A bar used to pry or dislodge something
• An inducing or compelling force: a tool

Leverage

• The action of a lever or the mechanical advantage gained by it
• The use of credit to enhance one's speculative capacity

Mechanical Advantage

• the advantage gained by the use of a mechanism in transmitting force
• specifically : the ratio of the force that performs the useful work of a machine to the force that is applied to the machine

Economic Achievement Applications

• Work Harder
  
  • Twice as hard to achieve half as much
  • True, but short-sighted
  • Means we would have to work 4x as hard to keep up
    • Unsustainable
    • No long-term benefit
• Work Smarter
  • We've all heard it, but what does  that mean
  • In economic achievement, it means use leverage

Sources of Leverage

• Credit: Most recognized Example
  
• Grant & Scholarship Programs
• Professional Networks
• Fraternities & Sororities
• Partnerships
• Champions
• Job / Paycheck

Examples of Leverage from Buy Black Podcast Guests

• Nneka Brown-Massey: Episode 003, Innovative Supplies Worldwide, Inc
  
  • Leveraged resources available to Veterans to start her business shortly after separating from the military
  • Leveraged the Instagram platform to find Black Artists to contribute to her business
• Mike De Los Santos: Episode 006, Mike D's BBQ
  • Leveraged Wins & Recognition from BBQ competitions to position himself as a premium brand above a highly competitive North Carolina market
  • Leveraged a NASCAR Sponsorship to put his brand in front of an audience with whom he may not have otherwise gained access
• Jamel LeBranch: Episode 019, Faith is Fuel Shades
  • Leveraged the influence of celebrities and athletes to position his product as a luxury brand
• Rashida Hawthorne: Episode 022, Glambulb
  • Leveraged the drop shipping model to build a profitable business from a very low initial investment
  • Leveraged the profits from that initial business to start a second, more cash intensive business
• DJay Reace: Episode 025, Mobile DJay Business
  • Leverages relationships with people in complementary businesses to grow his client base
• Jarrod Woodley: Episode 028, The Land Banc

Your Next Steps

Start looking for examples of people or companies using leverage in your own surroundings.  Look for opportunities to use leverage and take them.

Join the Buy Black Podcast Community Facebook Group and build relationships with our members.  Let's find ways to leverage each other to Build Businesses and stronger Community Economics.

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