The official definition of opportunity cost is “the loss of other alternatives when one alternative is chosen” but what does that really mean for businesses?

If you run your own business there are many moving parts that you need to manage. If you are focussing on getting one part to move properly then you may well miss that fact that the whole machine is breaking further down the line. Every time you decide to focus on one part you are taking away the opportunity to focus on another part.

So if you decide you will focus 100% on sales for the next quarter then the opportunity cost is that you have no time to focus on HR, management, legal, etc. Equally if you decide to focus on all of these areas instead you are costing yourself the opportunity to focus on the area you feel is a priority.

Whatever you do, there is an opportunity cost. You can’t do everything and you can’t cover all the bases on your own, especially as your business grows. The key to dealing with this is simple, ask for help! If you can’t do everything yourself, find people who can fill the gaps. Not ready to hire staff? No worries, there is a plethora of consultants and service providers out there who have built businesses with the sole purpose of helping out people in your situation.

So as a final thought I just want to ask you what you think the opportunity cost of not asking for help is?

If you want to have a no obligation, free consultation with The Consultants’ Community to find out how our members can help you reduce your opportunity cost click here to book

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