I was conducting a private group 
mastermind the other day and the discussion turned to investments versus expenses. I remember reading that business people, including most CEO’s, always look at the cost of an opportunity, before asking about the potential return. I guess it’s just human nature that when presented with an opportunity you want to know how much it’s going to cost you. Then it dawned on me…there’s always a cost, but it’s not always money.
What’s the cost?
Whether it’s for your business, your family, or in a personal relationship, there’s always a cost of taking, or avoiding taking, action. Your cost may be:
- Time
- Money
- Emotional capital
- Or some combination of the above
Deciding to start a business, or change jobs, costs you all of the above. Investing your time in a business or a new job of course takes money, but it also takes time, which affects your personal relationships. How much emotional capital are you willing to lose (time not spent with your family, your loved ones and friends) because of the time you don’t have to spend with them? That’s as important of a decision as how much money you want to invest in your business.
The cost of inaction
Conversely, what’s the toll on your family if you don’t take that new job, or start that business? I’m in this industry because I was miserable in a good paying job. I had a company car and good benefits, but I loathed going to work every day. My wife was expecting our second child, our son was 3, and I was never home. I like to joke that I only worked ½ a day…12 hours from 9am to 9pm. Many of you can relate to that. So, when a friend called and asked if I would come and sell wedding advertising for the magazine he just bought, commission only, no salary, no base pay, no draw against commissions, no guarantees—and I’d need to buy a car—I jumped at it.
Looking back on it, the costs were huge. I gave up the security of the good pay. I gave up not having to pay for a car. I gave up the good benefits which protected me and my family. I also gave up the stress of going to a job I hated. While I didn’t give up working long hours, I had more control over those hours. On paper it seemed like a risky path. While living it, I knew I was making the right decision.
Avoiding hypocrisy
I’ve never met a wedding or event pro who didn’t want to get paid well for the services you provide to your clients. I’m more likely to hear complaining about how you can’t charge more (which is a discussion for another article). Then why is it when you’re looking for a product or service, or when you’re presented with an opportunity, you look for the cheap solution? Free advertising. Do you make your own website? Design your own marketing materials? We all want people to invest in us, so we have to invest first. If you were a building a new venue you wouldn’t expect people to reserve it for their weddings, unless they see that you’re investing in it first. You wouldn’t say “If you give us a deposit we’ll build the facility.” Even if it was under construction they can see that you’re already investing. That’s why new home builders build model homes, furnish them beautifully and hire professional graphic designers and marketers for their sales materials. They invest first, then you invest.
I’m not immune to wanting to save a dollar here and there, but not at the cost of quality or how it represents my brand. I had tried a few online printing companies for my marketing materials, but I experienced inconsistent colors and quality. Now, everything I print goes to one printing company, and I don’t look at whether I can save with another company. This one had quick turnaround, consistent quality and responsive people. My time is valuable, and any of it that I spend dealing with a supplier is costing me both time, and money.
Why spend more?
There are times when you’re presented with an opportunity with multiple options, at multiple price points (kind of sounds like what you present to your clients). Do you always look at the lowest priced option first? Or do you look for which will get you the highest return, the best outcome, and then look at price? Having the privilege of seeing behind the scenes at WeddingWire (and at The Knot before that), I know that the people spending the most, are usually the ones getting the best return. Does it cost them more for their placement? Yes. Is the return bringing them more than the additional cost? In almost every case I’ve seen, the answer is a resounding Yes.
When should you decide to spend more?
What do you tell your clients? You tell them that if they want the outcomes that they’ve expressed to you, they often have to spend more. Then look in the mirror, and tell yourself the same thing. If you want a better return, be willing to make the investment first. When I left The Knot I said to my wife “If I can’t look in the mirror and tell that guy how to start, and run a successful business, and be willing to take the actions, and make the investments necessary to do that, then no one should hire me to help them with their businesses.”
Lead by example. Think about some of the things that clients do to you that frustrate you. Are you doing those same things when you’re the customer? There’s always a cost. What do you get if you choose the cheaper, or free option? What do you get if your just choose not to decide? The cost of inaction is often greater.
Need help deciding which path to take? Thinking of making the leap from part-time to full-time? Looking for a sounding board or just to bounce ideas off an experienced leader? I play those roles and more for my clients, companies just like yours. Want to see how I can help you, whether it’s a website review, a private mastermind day or on-site sales training? Call me, email or use the short form on this page, 732.422.6362, international 001 732 422 6362
Not sure how I can help you, or think your business is too small? Listen to what these businesses, people just like you, have written after working with me:
“His suggestions were immediately implemented and revealed immediate results! We have hired other professionals for advice but none have given the professional results, quick responses and genuine concern the way Alan does.”Becky Knudson, Cross Creek Ranch, Dover, FL
“While there was so much I learned I could have listened to him much longer. I am looking forward to speaking with him again in order for him to provide more feedback once I am able to make the necessary changes/suggestions. I recommend every business work with Alan even if just for once because he is invaluable to assisting to making your business a success!”Audrey Jones, Georgia TLC Events, Dallas, GA
“Alan was a great help when I came to him for advice, he is very easy to talk to. He simplifies things with examples in order to break it down better. I would highly recommend Alan for any business consultancy.”Ronan Burke, Extreme Structures, Dublin, Ireland
