When there is choice A and B, and I choose A, opportunity cost is the loss of potential profit from B.
People sometimes ask my opinion on what they should do for their career, or future. They know that I don’t know well, but they still ask. Because we all fear making big decisions, we want to be sure. We feel assurance from other people’s opinions, the more people we ask, the more assurance.
But in reality, nothing changes. We don’t like taking responsibility, so most people leave decision making on other people so that they have someone to blame when it doesn’t go well. We know that we shouldn’t take other people’s opinions into our own businesses. ‘Too many cooks spoil the broth’.
But what if it comes down to opportunity cost? opportunity cost occurs when we make a decision. If you don’t make a decision, nothing happens. Meaning that if you fall into a dilemma and not do anything, opportunity cost occurs from both A and B, because time is flowing. Time doesn’t wait for anyone. As I mentioned before, profound knowledge does not mean one can make the right decision because humans are vulnerable to emotional changes.
I’m not saying ‘just do it’, because planning is always necessary. Planning is also a part of the act, and its the first step. A good post is written here.