Opportunity Costs, Risk and Your Why by Rhonda Peterson

Summary

The 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

• 🔍 Risk is defined as the factor that influences your positioning on a continuum between danger or loss and opportunity.
• 🚀 Knowing your 'why' is crucial for understanding the reasons behind taking risks in business.
• 📈 Risks are closely related to the strategies you employ in achieving your business goals.
• 💼 Opportunity costs are the costs of the next best alternative not chosen, involving trade-offs in decision-making.
• 💡 Every decision involves opportunity costs, as choosing one option means forgoing others that could potentially be faster or easier.
• 🤝 The speaker focuses on working with small business leaders, recognizing the opportunity cost of not working with large corporations.
• 🎯 The best fit for the speaker is business owners and leaders in small companies, despite the opportunity cost of not engaging with larger businesses.
• 📉 Understanding opportunity costs is essential for making strategic decisions that align with your business goals.
• 💼 Weighing the opportunity costs and choosing the best option for your business can lead to increased confidence in your chosen path.
• 🌐 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.