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50 • The 100 Greatest Ideas for Building the Business of Your Dreams

I cannot leave leverage without mentioning the potential downside even although it
hardly fits into the business of your dreams. The upside potential of leverage is
matched by the downside risk. If you have operating leverage of 53 then a 10%
improvement in your sales will produce a 50% improvement in you profits. A 10%
drop in sales will produce 5 times that decrease in profits. If you have financial
leverage the down side is as dramatic as the benefit.

Nevertheless, a great tip for building the business of your dreams is: bet with
someone else's money.