How much is your business losing by not taking a better opportunity?

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How much is your business losing by not taking a better opportunity?

The other day, I was watching a StoryBrand Team video by Donald Miller. He spoke about the definition of “Opportunity Cost”. I’m sure you have heard this phrase before, but Miller’s explanation caused me to pause a bit and think about my clients and prospects.

He described Opportunity Cost like this, “How much am I losing by not taking a better opportunity?” Miller shared that after one of his best-selling books was published, he received many offers to speak which paid around $5,000 each. He found himself traveling often missing time with family and time to continue his work. So he began think. . .he could continue traveling all over chasing $5,000 OR he could stay home and spend time writing another best-selling book making $50,000. His opportunity cost equated to the difference of income generated from another best-selling book and the income generated from the number of speaking engagements in the same amount of time.

This is where my pause came. I’ve watched clients/prospects spend a great amount of time and effort scheduling appointments and creating bids/proposals. There is usually a great amount of variance in the size and revenue these projects will bring their business. And let’s be really honest. . .there are some projects you don’t want to even bid/propose on, let alone do the work. However, we fall into a Business Owner’s trap of feeling we need the work, to generate the revenue, to achieve our goals and so the wheel keeps on turning. Opportunity Cost is not even a concept in the back of our minds.

What I want to leave you with today is to think about calculating your business’ Opportunity Cost:
*Who is my ideal client/customer and what are their characteristics?
*Conversely, who do I not wish to have as a client/customer?
*What projects/activities generate my business the greatest return on investment?
*What is the acceptance rate on the bids/proposals generated and what type of work is getting the most acceptance?
*Based on these answers, how can I do more of the profitable work I enjoy by taking better opportunities?

Parting thoughts. . .How can you spend more time on activities which generate the greatest return for your business and stop losing on the ones that don’t?

Stop leaving money on the table!

Teresa Pedigo

Teresa Pedigo

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About Me

Teresa A. Pedigo is the Owner & Founder of T.A. Pedigo & Associates, Inc. Teresa works with Business Owners and Entities to help them set goals, create action plans to reach those goals, and provides accountability to keep the owner on track to meet their goals.

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