I first learned this concept of opportunity cost in a personal finance class in college. I have learned this lesson the hard way many times. I recently taught my daughter this concept when she was so excited to get two dollars for her birthday, and was anxious to spend it. So, when she heard the ice cream truck coming, she bolting without a second thought and came back with two popsicles to share with her siblings. I was proud of her for thinking of everyone else and that she wanted them to share in her abundance. But then I told her that we probably could have gotten a box of popsicles with her money, and asked if that was the best way to spend her cash. I felt terrible after that because she was really upset that she had acted so hastily without thinking. I think she has learned since then that money (especially so little) comes and goes. Bu the lesson still holds, there is an opportunity cost associated with how we spend our time and money. I hope my daughter learns that lesson well. I hope she will always weigh out the outcome of all of her expenditures.
The thing is, which is more precious? Time, or money? Money can be recouped even if it is difficult. But time is something that we will never get back. Once you have found an effective way to make money, I think it is valid to spend your time wisely, and decide wether the expense is worth the cost. Yet, we value our time so cheaply. I once passed up the chance to stand in line for a free sandwich from a great restaurant because the line wrapped around the building. I would have taken more than an hour to get through the line. Isn’t my time worth more than $5 an hour or less? But, if someone came up to me and told me they had a job for me that paid $5 an hour, I would turn them down flat! What a joke! My time is worth more than that! That is the opportunity cost associated with how we value our time. Don’t waste your time for things that have no worth.
Alison told me about how her lifestyle has changed over the years since she discover eCommerce. When she had her husband were first married, they qualified for food stamps! Alison learned the value of innovation and figuring out what she could do to support her family on her terms.
The reality is that we are all taught to value our time based on what we can get paid. When Alison learned that her employment wouldn’t pay her enough to feed her family, she knew she could not be limited by the constructs of time = money! She found a way to leverage her time to expedite her value in a way we don’t learn when we are told in a conventional economy.
Entrepreneurship is a roller-coaster ride of ups and downs. It is risky. But, there is an opportunity cost to finding success. You can continue to trade your time for money, and be valued by how much you can make an hour. Or, you can push through the risk of finding a new path and tackle the opportunity cost of learning to grow your potential exponentially.
Since starting her million-dollar businesses, and teaching her children how to do eCommerce, they have a new perspective on the time-value of money. They appreciate the trade-off of doing something they love to do and use the resources they have available to get everything done that needs to get done. They have been learning that you don’t have to devote all your energy to accomplishing tasks you can delegate to others. More than the opportunity cost this provides, it has allowed Alison and her kids to learn that they have choice. They have learned that they have options available to them that you don’t consider when you don’t have the ability to delegate.
This is a subtle mindset shift, but it is one that supports innovation, and creativity. Alison has taught her daughters how to run a business, and with that, they have learned the time-value of money — something they don’t teach you in school. Since they make their own income, her daughters are expected to buy their own things. Now they take better care of their things knowing the cost of replacing them. They clean up after themselves, and they respect theirs and others’ things.
The family culture that Alison and her family are working toward is a culture of abundance, and honesty, and innovation. I am inspired by her desire to raise her family to be creative and self-reliant!
Also, a shout-out to our heroes. Alison mentions Russel Brunson is one of her heroes and someone who influenced her to use her story to grow her business. I have also been impacted by Russel’s work. I have taken the challenge to learn more about his tools for starting an online business, and I love it! He has a big challenge going on right now to get you started on your entrepreneurial journey. You can check it out here: The One Funnel Away Challenge. This is a challenge I have personally benefited from, and found that each day is worth the cost of the whole program. There is an incredible amount of value in this course, even if you don’t know what you want to do for a business yet, this is where you get started!
Alison J Prince has built 4 successful multi-million dollar online businesses. She’s been featured in Forbes, The cover of Costco Connection, & spoken on the stage of funnel Hacking Live, but she feels her most successful business choice was teaching her 10 and 13-year-olds how to sell over $100,000 in 9 months. She watched them transform in believing in themselves and living what she terms the BecauseICan Clan life.She is now currently teaching thousands how they can live this life as well.
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Jump to location:
[00:55] Alison’s inspiration for starting eCommerce
[5:00] Wanting money is not greedy
[6:23] Getting started with eCommerce
[10:31] Inspiration carried Alison through her perceived failure
[13:24] Alison taught her daughters to run their business
[15:00] You don’t need to be an influencer to succeed at eCommerce
[17:30] How eCommerce changed their family culture
[18:38] Alison’s kids learn the value of money
[21:23] Opportunity cost and doing chores
[25:15] Innovation creates options and opportunity to make choices
[26:43] Alison’s take on family culture
[29:50] Why authenticity is important to running a business
[32:55] Little celebrations boost your confidence
[36:30] Success is aided by having heroes. Alison lists her heroes
[40:00] Failure is the path to success
[43:06] Alison’s final words of encouragement