You Shouldn’t Let Opportunity Cost Dictate Your Path Forward
Have you ever felt the anxiety of missing out on something for no real logical reason? This fear, also known as the “fear of missing out,” (or FOMO) is applicable not just in social situations, but in the business and professional world as well. The concept might seem rather juvenile in nature, but it is a very real thing that can influence your actions… and not always in a positive way.
To help reframe this juvenile outlook on the acronym, perhaps a better way of looking at this concept is to call it the “fear of missing opportunities.” In this sense, FOMO could mean losing out on a potential business venture because you were simply too late to jump on board. Maybe your dream client signed on with one of your competitors, or you missed out on investing in a local organization only to find that the organization becomes wildly successful and, much to your chagrin, they remember you turning them down all those years ago.
Now, how does this influence your behavior as a business professional? Maybe you take on any and all opportunities, despite not having nearly enough time or energy to keep up with these obligations. This inevitably leads to burnout, and when you later have to cancel obligations, it disappoints the parties involved. It’s not a good look for you or your company.
There is also the direct opposite of FOMO called the “fear of better options,” which is when you let the possibility of better options get in the way of making important decisions. Maybe you don’t want to commit to something in particular because there is always something bigger and better around the corner.
This “fear of better options” can also influence your decisions when it comes time to purchase technology for your business. What if you purchase technology now, only to find that a better model is going to be released next year? What if you implement the wrong solution? These questions can nag at you in the back of your mind and paralyze you into inaction.
The best way to handle the “fear of missing opportunities” and “fear of better options” is to take a close look at the opportunity cost of said interactions or options. For example, let’s say that you want to do business with a particular client. However, the workload that you pull for that client is not necessarily in line with the compensation that you receive. The client has been loyal for years, so you are afraid that you might be missing out on opportunities. In this case, the numbers don’t lie; if you can make the same amount of money off of other clients by doing less work overall, then you should do it. The opportunity cost of working with one client is simply too great to justify clinging to them.
Applying this once again to technology, maybe you are in the market for a new software solution, and it’s one that promises immense boosts to your productivity. However, there is no real reason or need for you to upgrade--at least, that’s what the logical part of your brain is telling you. But there’s that nagging “what if?” in the back of your mind that makes it hard to resist. You again perform the opportunity cost analysis; is purchasing this now going to have real, long-term effects on your business’ growth? Or could you wait a little while longer and get it when you are in a better position to do so?
Indevtech wants to help you make these difficult technology-related decisions. There should be no FOMO or FOBO with technology when you work with a managed service provider. We do our market research and help you get the best options that fall within your company’s means. To learn more, reach out to us at (808) 529-4605.