The Two Sides of Opportunity
I want to ask you to think about the power of learning to say no.
What do I mean by that?
People often see opportunities and focus on the potential benefits. However, there are two sides to every opportunity: the benefit it may bring and the cost of pursuing it. This cost is frequently overlooked initially and only recognized later when you find yourself overcommitted.
So, let’s take a step back. The next time you’re presented with an opportunity—whether it’s to recruit a new team member, take on a different client, move into a new market, or launch a new product, consider the implications carefully.
The Cost of Opportunity
However, I also want you to think about what does it cost to explore these opportunities.
Recently, I sat in a boardroom and we were discussing a new opportunity, I’ll keep that confidential because any sort of information I give around that will probably give the clients away.
I sat there and this opportunity came around the table for debate and all I heard from the management team for the first few minutes was, we could do this, we could do that, we could do this, we could that.
You get the idea, It was positive, positive, positive, positive.
And not one to be the spoiler or sour grapes here, however, it’s my job as non-exec to sit there and sort of challenge the board, and what I’m thinking is,
“Okay.” I’m just looking up:
- What we’ve currently got on in the schedule
- What commitments we’d already made to existing clients
- What the resources both in time, energy and finances that we’d already committed to those projects
I’m thinking, “This glass looks pretty full at the moment".
Whilst this is an amazing opportunity, can we really deliver it?
Can we really get it squeezed in without either messing up or affecting the other projects that were already in play?”
So I let the debate sort of burn out, and usually, it comes around the table and they said,
“What do you think Mike?”
I said,
“Well, let’s just park the opportunity for a moment, and let’s just look at what we’ve got on, and let’s put everything into context.”
Think Before Saying Yes
I’m not saying we shouldn’t explore new opportunities; that’s how we grow as entrepreneurs. However, it’s essential to first evaluate our existing capacity in terms of time, energy, and finances.
If you find you have the capacity to take on this new opportunity without compromising your existing commitments, then that’s fantastic!
However, it’s common for businesses to face impulsive opportunities without having the necessary resources to manage them effectively.
So, consider this:
- Can we deliver this new project to the best of our ability?
- What impact will it have on our current projects?
- What are the costs involved?
- What capital (human and financial) will it take?
If the new project requires additional time, can that time be better spent on existing projects to ensure they’re completed successfully.
The Power of Saying No
There’s a compelling argument for saying no to business opportunities, especially if they seem alluring at first glance. Often, people who present these opportunities might not fully understand what they entail.
Encourage them to provide a clear business case document that outlines:
- The opportunity at hand
- Expected outcomes
- Required outputs
- Timeframes
- Budget
By getting this clarity, you reduce the risk of scope creep that can turn a manageable project into a burdensome one.
We’ve all experienced the feeling of catching a tennis ball only to realize we’re now juggling a bowling ball that keeps getting heavier.
This can lead to additional strain, time pressures, and unexpected costs.
Adopt a Risk Management Mindset
My goal is to encourage you to adopt a risk management mindset before saying yes to new opportunities.
Evaluate the opportunity against your existing commitments and consider whether it’s worth pursuing now or deferring to a later date.
What Are Your Wins and Learning Experiences?
I’d love to hear from you. How many times have you taken on an opportunity that started as a tennis ball but turned into a bowling ball? Perhaps it became a loss-maker or caused reputation damage.
Conversely, share your success stories where you embraced an opportunity on the fly, despite initial nerves, and it paid off. Remember, in our philosophy, there’s no real failure, only wins or learning experiences.
