Can’t afford professional help? You’re already paying for it
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“I really wish we could use your services, but we just can’t afford to pay for your help.” I understand your hesitation, but I think you fail to realize that when you don’t reach out for specialized assistance, you may be paying even more than you think.
Whether it’s tapping the skills of a professional writer, obtaining your accountant’s help navigating a cash-flow crunch, letting your attorney review that agreement you drafted, or hiring a plumber to fix that balky toilet, your attempt to save a buck or two by doing it yourself is likely to cost you much more in the long run.
How can that be? First, consider that whatever needs to be done has to happen whether you do it yourself or hand it off to someone who’s better prepared to handle it for you. So you have to decide what kind of investment you’ll make – whether that’s your own time or someone else’s fee for services. Second, if you can’t handle it as well as a professional, what you do is likely to fall short of your objectives and reduce the return on the time you invested. As an example, a marketing email created by a professional is probably going to be more effective than something you draft, so you’re essentially “losing” business you’d otherwise gain.
There’s a subtle difference between costs and expenses, although most people incorrectly use the two terms interchangeably. Economists could devote days to the difference, but for those of us who barely managed a passing grade in the subject, cost describes the resources (including time and money) invested to achieve a goal or obtain something from which benefits will eventually be realized. Expenses are similar, except they involve resources invested with no future benefit.
One of the most difficult cost concepts for businesspeople to grasp is one they may not remember from that first economics class: what’s known as “opportunity cost.” This concept is central to how I’ve managed my own business … and to understanding how you’re already paying for professional help, even when you don’t think you are.
In the most simple terms, opportunity cost describes what you give up when you make a choice. Suppose I need to replace a leaky faucet in my bathroom. I won’t try to estimate what those accumulated drips have been costing me in higher water bills, but my trusted plumber tells me installing a new faucet will set me back $400. Knowing I can buy a new faucet for $100 at the big-box store, I conclude the DIY approach will save me $300, right?
In terms of out-of-pocket costs, yes, but my calculation ignores my opportunity cost. If I’m being optimistic and honest, it’s probably going to take me six hours to swap out that faucet, assuming I’ll return to the big-box store twice to buy additional parts and a tool I didn’t realize I’d need. Now let’s say I could otherwise use that time to write something for a client, earning $200 an hour for the work I perform. So my six hours of amateur plumbing involves forgoing $1,200 in potential revenue. That’s my opportunity cost.
When I consider that loss of $1,200 in potential revenue, the professional plumber’s $400 estimate is a comparative bargain. Choosing to pay the plumber’s fee proves to be a better deal for both of us.
In other words, when you try to save a little money by handling things by yourself, you’re probably losing the value of your time, specifically the opportunity to use it in more productive and profitable ways. So even though you’re not using professional help, you’re “paying” for it.
Look at it another way. Each of us gets only 8,766 hours a year. We spend a quarter to a third of them in bed, then divide the rest between work and our “free” time. The more time you spend focused on work, the less free time you have. Sure, you can devote more hours to handling every task on your to-do list, but is that how you want to spend your limited time? And just how productive are you when you move from 40 or 50 hours a week to 60 or 70? Most people who work that much don’t notice the inevitable decrease in productivity that accompanies fatigue.
I’d suggest you spend your precious time wisely. Guard your free time and make the most of it. At work, focus on what makes you most productive and profitable to your organization. Turn the specialized and extraneous stuff over to professionals who will do a better job and reduce your anxiety in the process.
And never lose sight of the fact that no matter which choice you make about performing a task, you’ll still be paying for it.
Scott Flood creates effective copy for companies and other organizations. His guide to evaluating freelance creative talent, The Smarter Strategy for Selecting Suppliers, can be downloaded at http://sfwriting.com.