Opportunity Costs, Risk and Your Why by Rhonda Peterson
Summary
TLDRThe script discusses risk as a pivotal factor in the continuum between potential danger or loss and opportunity. It emphasizes the importance of understanding 'why' you take risks in business, which informs strategic decisions and goals. Opportunity costs are highlighted as a key consideration, involving trade-offs in choosing the best path to reach objectives. The speaker shares a personal example of choosing to work with small business leaders over large corporations, illustrating the concept of opportunity cost. The script encourages business owners to know their 'why,' weigh all opportunities, and confidently choose the best path for their business.
Takeaways
- đ Risk is defined as the factor that influences your positioning on a continuum between danger or loss and opportunity.
- đ Knowing your 'why' is crucial for understanding the reasons behind taking risks in business.
- đ Risks are closely related to the strategies you employ in achieving your business goals.
- đŒ Opportunity costs are the costs of the next best alternative not chosen, involving trade-offs in decision-making.
- đĄ Every decision involves opportunity costs, as choosing one option means forgoing others that could potentially be faster or easier.
- đ€ The speaker focuses on working with small business leaders, recognizing the opportunity cost of not working with large corporations.
- đŻ The best fit for the speaker is business owners and leaders in small companies, despite the opportunity cost of not engaging with larger businesses.
- đ Understanding opportunity costs is essential for making strategic decisions that align with your business goals.
- đŒ Weighing the opportunity costs and choosing the best option for your business can lead to increased confidence in your chosen path.
- đ For more leadership tips and resources, or to learn more about the company, visit the website rkpbuusadvisors.com.
Q & A
What is the definition of risk as described in the script?
-Risk is defined as the factor considered in deciding where one stands on a continuum between danger or loss and opportunity.
Why is it important to know your 'why' when taking risks in business?
-Knowing your 'why' provides clarity on the reason behind taking risks, which influences the decisions made and helps in achieving the envisioned future.
How are risks related to the strategies utilized in a business?
-Risks are inherent in the strategies employed in a business, as they involve weighing potential dangers or losses against the opportunities for growth and success.
What are opportunity costs and why are they important in decision-making?
-Opportunity costs refer to the benefits or value of the next best alternative that is foregone when making a decision. They are important because they involve tradeoffs and help in choosing the best opportunity to reach goals.
Can you provide an example of an opportunity cost from the script?
-An example of an opportunity cost given in the script is choosing one method or means to achieve a goal over others, risking that another option might be faster or easier.
Who does the speaker primarily work with, and why is this a strategic choice?
-The speaker primarily works with small business leaders and those in small companies and ministries. This is a strategic choice because it aligns with their expertise and where they believe they can make the best fit.
What is the opportunity cost mentioned in the script regarding the speaker's choice of clientele?
-The opportunity cost mentioned is the decision not to pursue work with leaders in large corporations, choosing instead to focus on small businesses and ministries.
How does knowing your 'why' help in considering opportunity costs?
-Knowing your 'why' provides a clear purpose and direction, which aids in strategically considering all opportunities, weighing the options, and understanding the opportunity costs before making decisions.
What advice does the script offer for gaining confidence in considering opportunity costs?
-The script advises knowing your 'why,' strategically considering all opportunities, weighing the options, and choosing the opportunity that best aligns with your business goals to gain confidence in considering opportunity costs.
Where can one find more leadership tips and resources similar to the content in the script?
-For more leadership tips and resources, or to learn more about the company, one can visit the website rkp buus advisors.com.
Outlines
đ Understanding Risk and Opportunity
This paragraph discusses the concept of risk as a factor that influences decision-making on a continuum between danger or loss and opportunity. It emphasizes the importance of knowing one's 'why' in business, which is crucial for understanding the reason behind taking risks. The paragraph also introduces the idea of opportunity costs, which are the tradeoffs involved in choosing one opportunity over another to achieve business goals. The speaker shares their personal decision to work with small business leaders instead of large corporations, highlighting the opportunity cost of not working with the latter. The paragraph concludes with advice on gaining confidence in considering opportunity costs and encourages the audience to visit the website for more leadership tips and resources.
Mindmap
Keywords
đĄRisk
đĄContinuum
đĄOpportunity Cost
đĄStrategies
đĄBusiness Goals
đĄTradeoffs
đĄDecisions
đĄSmall Business Leaders
đĄConfidence
đĄLeadership Tips
đĄRKP Business Advisors
Highlights
Risk is defined as the factor that influences the balance between danger or loss and opportunity.
Understanding 'why' is crucial for taking risks in business.
Risks are tied to the strategies utilized in business.
Business goals require awareness of both financial costs and opportunity costs.
Opportunity costs involve tradeoffs in choosing the best path to reach goals.
Every decision involves opportunity costs, as there is always another way to accomplish a goal.
Choosing one option over others presents the risk that another may be more efficient.
The speaker focuses on working with small business leaders.
There is an opportunity cost in not pursuing work with leaders in large corporations.
The best match for the speaker is business owners and those leading in small companies and Ministries.
Not working with leaders of large businesses is a calculated opportunity cost.
Knowing your 'why' is essential for strategically considering all opportunities.
Weighing the options and considering opportunity costs is key to making the best choice for your business.
Confidence in the chosen path is increased by considering opportunity costs.
Leadership tips and resources are available for those interested in learning more.
RKP Business Advisors is the company offering these insights.
Visiting the website rkpbuusadvisors.com provides more information on leadership and the company.
Transcripts
Define risk as the factor you consider
in deciding where you are on a Continuum
between danger or loss and opportunity
which is a
game when you know your why you know the
reason behind taking risks in your
business you know the decisions you make
will lead to the Future you've
envisioned risks are related to the
strategies you utilize in your business
goals you need to be aware of the costs
both financial and opportunities not
taken opportunity costs involve
tradeoffs in choosing the best
opportunity to reach your goals rather
than any other method or
means every decision involves
opportunity costs there is always
another way to accomplish a goal
in choosing one option over
others I run the risk that another
option may be faster or easier this is
an example of an opportunity
cost I focus on working with small
Business Leaders the opportunity cost in
this decision was choosing not to pursue
work with leaders in large
corporations the best match for me is
business owners and those leading in
small companies and Ministries there is
an opportunity cost in not focusing on
leaders of large businesses but it's
worth it to me to not work with those
with whom I'm not a good
fit to accomplish your goals know your
why strategically consider all
opportunities weigh the options consider
the opportunity costs and choose the
opportunity that's best for you and your
business then possess more confidence in
the path that you've chosen
how do you gain confidence in
considering opportunity
costs for more leadership tips and
resources or to learn more about our
company visit our website rkp buus
advisors.com
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