Episode Details
Back to Episodes29- The hidden costs that govern our business (and life)
Published 7 years, 4 months ago
Description
In the second mini d.MBA episode, we look at two related business concepts:
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Opportunity Costs
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and Return on Investment (ROI)
If you take a year off from work and do an MBA, this doesn’t just cost you $100k. During that same year, you could be earning your salary. So, your opportunity costs (for that year) are way above $100k.
A freelancer that takes on a project with a 50% discounted rate won’t be able to sell that time to a much better paying corporate gig if it shows up at a later point.
How can we best decide among different opportunities and their costs? One way is calculating ROI.