leverage
LEH-vuh-rij
/ˈliːvərɪdʒ/
Use (something) to maximum advantage; (as a noun) the exertion of force by means of a lever or the power to influence people.
Implies using an existing asset, relationship, or position strategically to achieve a disproportionately large result.
The story behind the word. The word comes from the physical lever—a tool that allows a small force to lift a heavy object. Archimedes famously said of this concept: 'Give me a place to stand, and I shall move the earth.' In the 20th century, the term was adopted by finance and business to describe using a small amount of capital or a single key asset to control a much larger enterprise.
Word relationships
- exploit: Exploit can have a negative connotation of taking unfair advantage, while leverage is neutral and strategic.
- utilize: Utilize simply means to make practical use of, without the connotation of multiplying force or advantage.
- impotence: Impotence is the complete lack of power or means to achieve an advantage.
- disadvantage: A disadvantage is a circumstance that puts one in an unfavorable position.
Commonly confused with
- influence: Influence is the broad capacity to affect others; leverage is the specific mechanism or asset used to exert that influence.
Word family
- lever (noun): A rigid bar used to exert pressure or sustain weight.
- leveraged (adjective): Using borrowed capital or strategic assets.
Collocations
- gain leverage
- strategic leverage
- leverage assets
- financial leverage
Example sentences
- "We must leverage our existing customer base to launch the new product line successfully." A business strategy discussion on using technology.
Memory hook
Think of a lever that makes a heavy age (leverage) of work light and easy to lift. Leverage is a strategic force multiplier.
When not to use
Do not use when you are simply using a tool in a basic way; leverage implies a strategic multiplier effect.
Fun facts
- The financial sense of 'leverage' (using borrowed money to increase potential return) was first recorded in 1933.
- The physical principle of leverage was first mathematically described by Archimedes in the 3rd century BC.
Explore more words
agency, outmaneuver, synergize, take advantage of, influence
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