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The Great Ideas Letter Forum
More thoughts on money risk
Posted By: Michael Ross In Response To: How to choose between different business projects... Part 2 (Dien Rice)
Date: Monday, 17 January 2005, at 1:16 a.m.
Dien,
Thanks for the thoughts.
I think some additional thoughts would be needed for the money risk section. And that is a comparison of money.
I've written about this before but it is worth repeating...
Money spent on a project - vs - money spent on non-productive things.
$20 to run an ad to test a project - vs - a few DVDs hired for the night with a pizza or couple of bags of popcorn and some soda.
Many ideas are ridiculously cheap to test. A few phone calls here, a flick through the Yellow Pages there. And a small classified ad placed.
And yet, with such inexpensive testing available, many people will baulk at it. While thinking nothing of blowing the same amount of money on DVD hire for the night.
Even if you can give someone a product source, the person to speak to at the source, and a proven classified ad, most people in the "biz op" market will not run the ad.
I think the underlying reason is what I cover in The Success Report. But having said that, it is something we can all experience. Sometimes even I cannot be bothered testing an ad. Thought my reasons are more to do with being "ready" on the other end and not so much spending the money on DVD hire. Which is to say, I can't be bothered creating the computer file(s) necessary to store the information (customers, etc.) the new project would generate.
This only happens on some things. And when I have available time, I often do end up testing them. But not when I first get the idea or whatever.
But I think most others fear the loss of the twenty or so bucks.
They will be the same ones to spend ten bucks a day at the cafe at work to buy coffees and cakes. But to plonk down a twenty spot on an ad, or something else which could give them more time (like a lawn guy or cleaner for the house), is something they won't do.
I have had clients cancel their service for "lack of funds" while simultaneously spending what the monthly service bill was, in a single week - each and every week - on useless things. And that's cool. Some people have different priorities.
Mary Kay always strove to have a "cleaner" instead of doing it herself. While other people, wouldn't get a cleaner in a fit and would, instead, buy chocolate bars with the same amount over the course of a week and do the cleaning themselves - losing time and money.
People just value their money differently. Or haven't been taught the various ways money can be valued.
Michael Ross
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