Don’t Ignore Opportunity Costs

One very common mistakes that I often see people make is ignoring opportunity costs in their decision making and analysis.

The concept of opportunity cost is one of the most powerful and yet deceptively simple concepts in economics. In short, every choice you make has alternatives that you could have chosen but didn’t. This foregone opportunity is known as opportunity cost. The opportunity cost of a decision is different for every single person, and it changes constantly, based on age, location, state of the economy, indeed an infinite number of factors.

When you calculate the costs of your decisions or your campaigns, you need to add opportunity cost into your deliberations.

What does this mean for IM?

• At a high level, it means that the costs that you bear ...