One Man Army

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 decisions
  • It’s like comparing apples to oranges
  • It’s a hard choice
• We don’t know which option is better
  • Both seem soooo good!
• We often choose the option that makes sense in the short term
  • Driven by instant gratification!
• We’re not sure if we are making the right choice
  • No way of testing out our option

Cause

• Not considering all factors of decision making
  • Values
  • Systems
  • Constraints
  • Biases
  • Cost
• Not weighing opportunity cost in particular
  • In simple terms – you can only do one thing at a time
  • You have to pick either A or B
    • Time is a limited resource
      • If 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 else
    • Projects
    • Job opportunities
    • Salaries vs Perks
    • Learning
    • Education vs. Employment
    • Employment vs. Entrepreneurship

Address

• Factor in Opportunity Costs into decision making
  • Be 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 decision
      • And the cost (what are you saying no to?)
    • Evaluate pros and cons of alternative options
      • And 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
  • Upcoming
  • Recently made
• Run through the process of making decisions by factoring in opportunity costs
• Maintain your decision making progress in a journal
  • Use your insights to adapt and improve your decision making process

Brought to you by Epic Career Labs

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

• https://www.epiccareerlabs.com/course

Did you know?

• You can take a free assessment to figure out what’s your career risk level?
  • https://www.CareerRiskLevel.com

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