FourSquare might be a good idea, GoWalla too. But is it the best idea for you at this time? That’s what opportunity cost is all about. What opportunity are you giving up, to do what you’re doing right now? And that’s the danger of good ideas.
Danger! Good Idea Danger! |
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| Photo Credit: Pop Vultures |
Limited Resources
Good ideas are tricky little things. They lure away your time and money. They come bidding in the form of a trendy topic on Twitter, an article you read, a smooth pitch at a conference. Whatever form they take, you must be wary of good ideas. Apply the opportunity-cost test to see if it’s right for you. Given your limited resources of time and money, is this the best idea? What opportunity are you giving up to do what you’re doing?
Highest Value Activity
It’s all about doing the best thing for your business right now. Is creating an iPhone app really what you should be spending your time and money on? Or would a few extra dollars and a few extra hours spent on your Facebook page be a better investment? Do you really need to spend money on advertising? Or would it be a better to invest that money in enhancing the customer experience?
Good ideas are constantly tempting us. We should ignore most of them and only pay attention to the best idea: the best idea for what we’re trying to accomplish for our business.
So for you, what’s the best use of your time and money? Are you currently investing your resources in things that are costing you opportunities?
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