Power Term: Opportunity Cost

andrea callahan is worth the costTake It or Leave It?

Unlike other types of cost, opportunity cost does not require the payment of cash or its equivalent. It is a potential benefit or income that is given up as a result of selecting one choice over another. For example, You have an employee, Sue that you pay $25,000 per year. Sue has a serious attitude issue, she is difficult to get along with; and her colleagues complain about working with her. However, Sue is both productive and efficient . If you decide to let Sue go, you will undoubtedly save her salary but you would also give up her skill-set in the hope of finding an employee with better self-mastery skills. Your opportunity cost would be $25,000.

Almost every alternative has an opportunity cost. Often this is not reflected in your  accounting records but must always be considered when making decisions.

What are your opportunity costs in your business? Share in the comments section below.

In awareness, passion, joy& business success!

Callahan

About The Author

Callahan

Andrea Callahan is a brand designer. She helps passion & purpose-driven entrepreneurs maximize their strengths to craft and implement an image that represents their WHY and to use that why to position themselves as an Industry Influencer. She a speaker, seminar leader and the author of, "It's Your Brand ~ Make Your Identity Clear" available on Amazon.com Callahan launched the Industry Influencer Academy at academy.andreacallahan.com

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