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One of the toughest things about running a business is the giving up of the most addictive drug in the planet – a monthly salary.
I still fondly remember the days when on the 29th or the 30th – I would get that SMS from the bank that my salary had been credited.
MAN! THAT FELT GOOD!
What would immediately follow is a checkout of my prefilled carts, a fun dinner and maybe some icecream.
Good times.
Then, the 1st would come in and I would go back to work, waiting for the next HIGH I’d get from the monthly salary.
Now, as an entrepreneur, things are different.
Very different.
I’m more of a one man army now. I don’t get the monthly salary, but I do get the freedom (and responsibility!) of doing what I want to do, when I want to do. For example, last night, I went to bed really early – and slept for a good 13 hours. I got up at 11, and started a pillow fight with my baby girl. Then, we went to the terrace and tried to fly a kite.
After all that, I started working again. After browsing 9gag & Reddit, that is.
Both are cool ways to go about life.
But, the key point here is – I can’t have both. It’s either one or the other.
Each one of them has an opportunity cost that I need to pay.
Realizing that every decision we make has an opportunity cost is an important development in our careers.
To learn more, read on.
Biggest Career Mistakes To Avoid #16/101: Not understanding the concept of ‘opportunity cost’ #16 Situation It’s difficult to make decisionsIt’s like comparing apples to oranges It’s a hard choice We don’t know which option is better We often choose the option that makes sense in the short termDriven by instant gratification! We’re not sure if we are making the right choiceNo way of testing out our option Cause Not considering all factors of decision makingValues Systems Constraints Biases Cost Not weighing opportunity cost in particularIn simple terms – you can only do one thing at a time You have to pick either A or BTime is a limited resourceIf you spend time doing A, you can’t do B If you spend time doing B, you can’t do A Anytime you’re saying ‘YES’ to anything, you’re saying ‘NO’ to everything elseProjects Job opportunities Salaries vs Perks Learning Education vs. Employment Employment vs. Entrepreneurship Address Factor in Opportunity Costs into decision makingBe aware of all the things you’re saying ‘NO’ to by saying ‘YES’ to one thing Before you make a decision…Make a list of alternative options Evaluate pros and cons of your chosen decisionAnd the cost (what are you saying no to?) Evaluate pros and cons of alternative optionsAnd the cost (what are you saying no to?) Now, re-evaluate the chosen decision, with ALL information at hand Result You have consciously thought of all options before making a decision You have inner peace and clarity You identify better options by thinking through the options You are aware of the sacrifices you need to make to make this work Your Turn Look at a difficult decision you need to make Run through the process of making decisions by factoring in opportunity costs Maintain your decision making progress in a journalUse your insights to adapt and improve your decision making process Run by Arvindh Sundar Goal: Increase Job Security With E.P.I.C Transformations Mission: Liberate a million millennials from an unsatisfying career Get in touch at arvindh@epiccareerlabs.com There’s a course that can help fix most of these Did you know? You can take a free assessment to figure out what’s your career risk level? Want exclusive & useful content?
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