Would you spend $4,000 to make $40,000?
If it’s not a sure thing, how much risk are you willing to take?
Would you invest in your business if you had a good idea that the return would be 10 fold (or more)? Of course. But how do you know if it’s going to pay off? Since we can’t be 100% certain, let’s look at what you can do to increase that percentage to a level of comfort.
I won’t go into details, but last night our school auction team hired a new auctioneer and he was more than fabulous. He was a consummate professional and took over the evening with warm, direct and fun fund-raising techniques. I talked with him extensively and plan to interview him on the Repossible Podcast (when his busy season slows down) to learn more about the psychology of auctions.
Let’s look at how to minimize risk and maximize return.
- Experience: has he been around the block? Does he say things like, “I’ve done this 42 times and I’ve increased revenue for schools on average by 25%.”
- Trust: do you just have a good feeling for the person? What is your gut telling you?
- References: can you talk to others to see what’s he done for them?
Are you willing to spend the money to make the money? What if you didn’t invest the money, what would that bring?
- Invest $0 –> Earn $5,000
- Invest $2,000 –> Earn $10,000
- Invest $4,000 –> Earn $40,000
- Invest $10,000 –> Earn $200,000
Seems simple, right? But of course, those aren’t guaranteed numbers. Just like any investment (advertising, stock market), there’s risk and return. How much are you willing to risk? Also, is it your money to spend? Is it your money to earn?
It’s risky, but when it pays off, it’s rewarding, exciting and can be a rip-roaring party.
How much risk are you willing to take that lightning might strike?