The Curse of Opportunity

Opportunity is both a blessing and a curse.

The problem with opportunity is not that there is too little of it, but rather that there is too much. We are awash in opportunity to the point of confusion and indecision.

Should I do this or that? Go here or there?

The questions are endless.

Anymore, the goal is not find an opportunity. That’s easy. Now the goal is to determine which one or two or three opportunities out of hundreds are worth your time, energy, and dedication.

Because the price of pursuing a mediocre opportunity can be high indeed.

It may only cost you the difference between what a mediocre and great opportunity produce. Or if the mediocre opportunity doesn’t pan out — a common occurence — then it may have been better to have never pursued it in the first place.

Here are some ways to judge the value of almost any business opportunity. Give yourself points or take them away according to your answer.

A Brief Non-Scientific Method for Analyzing Opportunities

1. Will this opportunity pay you money this week or this month?

If so, add +5.

2. If there is no guarantee this opportunity will pay immediately, can you take a specific action today that will produce a positive, measurable financial result? (A “positive, measurable financial result” means money in your pocket, not potential money in your pocket.)

If yes, add +3; if no, subtract -2.

3. Does this opportunity leverage your strongest skills, talents, and abilities?

If yes, add +3; if no, subtract -2.

4. How soon and how frequently will this opportunity pay you money?

• Ongoing starting now, then add +5.
• Ongoing starting at 3 months, then add +1.
• Ongoing starting at 6 months, then subtract -2.
• One time pay-off now, then add +4.
• One time pay-off in 3 months, then add 0.
• One time pay-off in 6 months, then subtract -3.

5. If this opportunity is being presented to you by another person, how much potential money has been pitched to you?

• $100,000 or more, then subtract -10.
• $50,000 to $100,000, then subtract -6.
• $10,000 to $50,000, then subtract -3.
• $5,000 to $10,000, then subtract -1.
• $0 to $5,000, then add 0.

In general, the more money you’re promised… and the farther out the potential pay-off… the worse the opportunity is.

And, in general, the more modest the pay-off… and the more quickly you get paid… the better the opportunity is.

That’s why, this past year, I’ve developed a personal business strategy that says:

“Follow the Money.”

Which is to say, invest the majority of your time and energy into project and clients that pay you today — instead of projects and clients that might pay you at some distant (undetermined) point in the future.

Will this little test I’ve devised be appropriate for analyzing every opportunity that comes along?

Probably not.

But it should at least give you a good feel for the relative value of the opportunities you’re looking at. I hope you find it useful.

-Ryan M. Healy