Definition
Leverage is the use of borrowed money or other resources to increase potential returns on investment. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
Two cofounders disagree until they define Leverage. Once they agree it means “Use of borrowed money or other resources to increase potential returns on investment”, the argument becomes a decision.
Common mistake
Using Leverage as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Lean management
Management approach focused on eliminating waste and maximizing value creation.
Read definition →
Legal compliance
Adherence to laws, regulations, and standards that apply to business operations.
Read definition →
Liability
Legal obligation or debt that a company or individual is responsible for.
Read definition →
Limited partnership
Business structure with general partners who manage and limited partners who invest.
Read definition →
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