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Art of Entrepreneurship – Opportunity Cost

In the world of entrepreneurship, it is very easy to get lost in multiple projects, multiple jobs or multiple engagements all at the same time. Many websites suggest you to focus on several different projects at the same time in case one doesn’t work as something on the back burner to fall back to. The truth is that it is a great strategy to do so as long as all your projects are aligned and work on the same principles and mechanisms so that the thought and successes of one can be shared by all. In most cases when your projects are all different, there is such a problem as what I call opportunity cost…

For those of you that are not familiar with the economics theory known as opportunity cost, it is quite simple. When you are engaged in an activity, you cannot be engaged in another during that same period, making your opportunity cost as the lost time and inability to devote to the secondary activity. This makes you question the best use of your time so that ultimate productivity can be achieved.

In entrepreneurship the same holds true with multiple projects as participating in one venture keeps you from another. Many new entrepreneurs make the same mistake by devoting their time to multiple ventures, none of which they are fully devoted to. It is easier for them in a sense as they don’t get bored and remain fresh in thinking about multiple sources of income down the road but the real problem is that they are doing so not to be successful but to give themselves an excuse to fail or why its taking ten years to get from A to B.

The real reason it makes more sense for one to invest their time across multiple ventures is because they don’t believe in any of them enough to devote their lives to it, or their full attention. Your willingness to sacrifice all your time and effort needs to be there for any project to succeed as entrepreneurship is nothing more than the ART of self control. So I want you to rethink your approach to your projects, ventures and opportunities when you are new at defining yourself in the world of entrepreneurship. I want you to think harder, act slower and truly understand each and every venture you take on and its impact on the short and long term but more importantly the opportunity cost you are giving up in exchange for taking it on.

I am not asking you to work at a slower pace but rather understand what you are getting into so that you don’t give up in a week, month or year by moving onto a different opportunity and slowly abandoning the other ones… Keep in mind that consistency as discussed in previous ART-E articles is key to succeeding and often that goes beyond just one year and requires patience, focus and systematic thinking. Stay focused and don’t overload your plate as an excuse to allow failure but rather keep your plate clean until you are ready to eat all thats on it.