Cost vs Investment Perspective

Hat Tip:  Dan Sullivan of Strategic Coach

Perspective is a tool...pretty much like everything else we use.  And as a tool it can be used effectively or ineffectively.

There's a saying, "The tool for the job." Different jobs often require different tools.

In working with entrepreneurs, I've found the COST perspective is most often effective when trying to move away from something.  You've already decided it's not something you want to invest time and energy into.  By looking at a project or resource as simply a cost, you grease the wheels to getting rid of it.

The problem is when you only use this perspective, when it's your default perspective.  We've been finding the INVESTMENT perspective is usually a better starting part to evaluating a project or any type of expenditure.  With investment you are looking at the return, what you get out of what you're putting in.  From this perspective you can better evaluate.

BATTLE or ALLY

If you default to a cost perspective you've set yourself up to see everything as a battle.  Costs are losses.  You want to reduce all losses.  You fight against losses.  The problem is now you look at everything as a loss in money and time.  You cannot effectively build a business by trying not to lose.

If you default to an investment perspective you set yourself up to evaluate if things are worth it for you.  Anything that exists has some use.  The question isn't for you to evaluate the objective use of a thing - it's for you to see how it works for you in what you want done.

So what?

Try using the cost perspective AFTER you've decided not to do something.  Especially when you're a little wishy washy.  It really helps to solidify the commitment you've made to NOT doing.

Acute vs Chronic Stress

Hat Tip: Tim Ferriss

Distinctions matter...they matter a lot.  When stress is discussed we usually mean chronic stress.  The stuff that grinds us down, has long term psychological and physiological repercussions.

So what?

There's a good type of stress.  It's acute, it's short term and it is the stuff that makes you move to the next level...always.  The problem is when we try to avoid ALL stress.  That would be like trying to avoid ALL water because some is polluted.  

Seek out acute stress.  Seek out the situations that require you to bring a great bit of focus, skill and creativity.  Not constantly (that would turn things into chronic stress), but neither do you want to build a business where you're only in your comfort zone.

Your comfort zone is a great place to regroup, reconsolidate, build and prepare for another burst of growth and creativity.  This is the place where you have NO chronic stress.  Work hard to eliminate all the little things that bring such stress.  But DO NOT stay here for extended periods of time...weeks or even days on end.  Venture out into something requires you to fully show up again.  This is outside the comfort zone.  But this is short term.

  • Meet up with someone new.
  • Test out a new process or campaign.
  • Experiment with a new resource.
  • Get yourself into a situation where you have to CLEARLY share a new idea.
  • Work with someone a little bit out of your league.
  • Add something to your offerings that's a little bit tougher to deliver.
  • Reduce the time to delivery of something by 25% so you have to creatively come up with short cuts and efficiencies.

Then, come back to your comfort zone to assess and prepare for another round.

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