The trade-offs

Zachary Aldwin Milkshake in the Boardroom
The artist who builds gives away a song or even an entire album because he knows people will buy the next one. The builder values ongoing relationships because that is how he gets the next contract

Here is a little known fact about Zach that you did not know: I bake a mean cake. I’ve been baking since I was five.

So here is the choice I face today; I can pop down to the local store and buy a fully-fledged gateau, or I can create one from scratch myself.

Ninety percent of the time I choose the second option. It is far messier, takes longer, involves far more effort than a shop made one, and often is not really all that cheaper. So why do I do it?

Most of the time it tastes better (usually I use the best ingredients available) but deep down there is something rewarding that cannot be quantified about making it yourself.

The trade-off in time for me is really not worth it. Trade-offs occur throughout life. There are a few that you may face in your business.

People over scale

A common investor question is “How does it scale?” Scale is overrated. People matter. People have names and like to hear them used. People are individuals and they look you in the eye and have emotions.

People understand you and if you offer great work/products/service, then they want to perpetuate that because they enjoy great value.

People are like you and me. People are your customers. People are your employees. Sometimes as entrepreneurs we view customers as some faceless crowd waiting for you to make a mistake in order to rip you apart with criticism.

Well, it couldn’t be further from the truth. If you treat your customers with love, respect, and admiration, 9,9 times out of 10, it’ll be reciprocated.

A savvy business owner tips the scale first and gives full engagement and excellence with no strings attached. That’s how a great relationship is formed. Then scaling your marketing doesn’t become nearly as important because your customers are telling others about you

Impact over profit

‘‘Maximise profit’’ has been the maxim of the production era. Profit first can be a slippery slope because you cut corners and trim margins, and offer sub-par services just to make a little bit extra.

With launching a new business if all you care about is turning a profit, your thinking is skewed and could cause you to stunt the growth of your fledgling venture. You have to invest in your people, your knowledge base, your equipment, and your culture first.

Then strive for profits. Naturally this sucks sometimes. Profits are awesome. We want them, the market expects them, and investors demand them.

But if all you care about is profits, you’ll run people out of the building with your attitude. Your infrastructure will be falling apart because you are too miserly to maintain it and a future vision doesn’t exist in your culture.

Aim for impact. Then push as hard as you possibly can for profits. There are no shortcuts and it’s not easy.

If you are aiming for impact sooner or later the profits will follow. If you aim for impact your clients will tell others about your work. Not only that, people will be willing to pay a little extra for impact.

Exploitation over building

“Get it now, or someone else will take it. Take it all, because there’s no reason to leave it there. Make sure others don’t take it before you. And when it is exhausted, move on.”

That is the mantra of the person seeking to exploit a commodity. This is the person who cannot get enough produced fast enough because the product may run out, or the market may dry up, or people will move onto something else.

These are the same people who would rather you empty your pockets today than have you come back a second time tomorrow.

Here is how the mind of an exploiter works: anything that slows down, impedes or interferes with more extraction is nothing but a challenge to be overcome.

So casinos figure out ways to keep you playing for longer. Oil drills get bigger and faster. Production lines become more efficient and less reliant on humans.

Ticket prices go up because well that is the best way to make a profit. The promoter who builds understands that having someone come back is more important than maxing out a one off performance.

The artiste who builds gives away a song or even an entire album because he knows people will buy the next one. The builder values ongoing relationships because that is how he gets the next contract.

Business owners have to consider these trade-offs; my hope is that it will not be a trade-off, but rather that there is only one choice.

That we will choose to build people, leave an impact, and think long-term. Not only that, but as consumers we will shun the quick-grab-get-rich-quick schemes and partner with people who think the same as us.