Opportunity cost does not show up in your financial statements, but it is something that all businesses should monitor
“I can’t afford to hire anyone” – most likely, the reality is you cannot afford NOT to hire someone
How much profit does a customer generate? How many hours did it take to get a customer? The resulting quotient is what you are worth to the business. If you are performing other activities that pay less, you should consider hiring other employees/contractors to do those tasks allowing you to generate more profits
The cost of you not performing at the highest level is an example of opportunity cost
Another example would be procrastination – each day you don’t have a new customer is a day you do not enjoy the profits from that customer
If you would like to improve your business or know anyone who would like to improve theirs, call me.