Tweet

The R.O.I. Dilemma

Guest post by: Craig Jennings

Article Overview: Return on Investment. If only we could get the return first, we'd bve happy to make the investment! In fact, if you weren't very good at this already, you probably wouldn't be reading this article!

The R.O.I. Dilemma

The R.O.I . Dilemma! Every entrepreneur knows that R.O.I. or Return On Investment means

A. First, you make the investment

B. Second, you get the return, later, maybe.

In fact, this is one of the issues that make us entrepreneurs - otherwise, we'd be getting a weekly paycheck, and taking orders from "the man."

Wouldn't it be much nicer to get the return first, before we had to make the investment? That's why non-entrepreneurs see it as a Dilemma! Yet, if you don't make the investment, you'll wait forever for the return.

Sounds simple. Is simple. But not easy. As a business coach, I speak with some 25 entrepreneurs a month, and we address these issues regularly. You may be dealing with small dollar issues or huge investments. One of the home truths on this topic is that the objections to investment look huge beforehand, trivial afterwards.

Example: I have a client, call her Alice. She has a small law practice, helping individuals and corporations deal with a newly-aggressive IRS. Turns out that the IRS can do a lot of nasty stuff when they decide you owe them a ton of money. Like garnishee your paycheck, invade your savings, etc. etc. without warning. And, it turns out that a smart lawyer like Alice can often turn the tables very neatly on the IRS!

Alice had good income prospects, an established marketing process, expenses to match her income, and absolutely no discretionary time. Crazy busy, verging on frantic. Sound familiar?

Her R.O.I. Dilemma turned on hiring some additional help to manage paperwork and processes. She believed that, by taking on some clerical/administrative support, she could multiply her valuable CEO time - Chief Executive time is usually worth about 10 times more than Chief Employee time! But for months she couldn't pull the trigger because she wasn't making enough money. Dilemma!

Fundamentally, Alice had clear ideas on what to do - but was trapped and overwhelmed by her concerns. After a number of coaching conversations, Alice took a deep breath, stepped over her fear and made her investment. She found a prospective employee she thought she could trust, and took her on - for 15 hours a week at $10 per hour.

Transformation! New employee loved the work, was given freedom to organize and structure the process. Did so. Discovered a batch of opportunities disguised as paperwork which she was able to act on, immediately. Included was a mailer to over 1000 prospects that had been printed, sorted, bundled and ready for the Post Office, but had never been sent.

Now Alice shifted gears into CEO mode, called some people who had owed her money for a long time, created a formulaic proposal which she could apply to many new prospects, used the new employee to generate contacts, and doubled her incoming cash flow. The cost- $150, or $10 an hour x 15 hours a week! Small investment, huge return. (Great relief!)

Make no mistake, the economic downturn exists. Banks aren't lending, people aren't spending. But when Alice was able to renew her vision, recognize opportunity and act on it, her world really changed.

Changing your world is why you became an entrepreneur in the first place. The R.O.I. dilemma is always solvable. In this case, a little coaching helped make the difference between frustration and action.

Changing your world, regaining the vision you once had or finding a new one is why I became a business coach 13 years ago. Change is absolutely possible, often difficult and it may be crucial. You will have to give up pessimism.

A business coach is successful only when his clients are successful.

Blatant call to action: It can begin for you with a phone call or email to Craig Jennings, Small Business Coach. Information on my profile at Evan Carmichael, or just Google my name.

Related Articles
  Teamwork
  The bad table
  Idea of the Week A Clients Thanksgiving
  Annansi in Entrepreneur Magazine’s December issue
  How Strong is Your Customer Loyalty? What AT&T and Apple Can Teach You
  Balancing Act
  Cost of office fit out
  Stress-Free Selling® - How to Talk About Competition
  “How Valuable Are Your Ethics or What is Your Price to Compromise Your Ethics?”
  Online Networking and the Workplace
  Developing Your Innovative Thinking Skills
  The Voicemail "Chase me" game
  The Business Owner's Challenge: Manager or Practitioner?
  Interview Question -- Outside The Box
  Five Tips for Using Great Questions
  Lemonade Marketing
  Partner Relationship Management Software For Vendors
  Is it best to be the cheapest or to be the best?
  Download a template or see a lawyer?
  TURNING CHAOS INTO ORDER - Strong Business Credit

Article Tags: dilemma, return on investment



Related Forum Posts


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Mistakes Made by New or Inexperienced Sales Staff

Purchasing Real Estate using the SBA 504 Loan

LEARNING TO HAVE FUN – EVERYDAY!

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.