Leveraging

Illustrative example: David invests $10K in Q1 into marketing, makes $10K back in Q2, and an additional $20K in Q3 & Q4. Total profit from marketing investment = $20K. Initial investment = $10K. Time to reap return = 6 months.

So, with that example how on earth can you go wrong? What if David didn’t have the $10K to put into Q1… he would have lost out on that $20K profit, right? Wrong. David didn’t have the $10K. He leveraged the $10K with one of his lines of credit, which happened to be offering 0% interest. He paid only the minimum payments due monthly until he made his money back (Q2’s return), and which point he immediately paid off his balance in full at the end of Q2, never incurring interest. In Q3 and Q4, David sat back and let his investment behave the way an asset should and let it make money for him.

The tip is this: If you don’t have the money right in front of you, this doesn’t mean you can’t invest. If you or your business has good credit, you can leverage your way into a smart investment: marketing.

>>The economy is down… I can’t think about marketing now; are you crazy?!?

About the author : Laura DiBenedetto