12/06/2024
A true Story: After I retired from the public company as 17 years the CEO, I found myself bombarded with opportunities. From jobs, to investments, to consulting offers, the number of choices was flattering at the time 🕺
Sounds great right? Well, not really…
As entrepreneurs: we often face two challenging scenarios:
1. Too many options (lack of clarity)
Not knowing what to do next can result in confusion, a lack of clarity and feeling overwhelmed.
2. No viable options (feeling depressed)
On the flipside knowing what to do - but not how to do it, can lead to a sense of despair and lack of direction etc.
In my case, I was making decisions that weren’t always in my best interest, leading to wasted time and resources and I needed a simple system to evaluate and prioritise (without emotional bias).
It took me a while to realise that those good folks that wanted to "pick my brains", were really picking my pockets and stealing my time (just sayin' 🤷♂️ ).
To fix this, I developed a simple tool that I now share with my clients. I call it the the Profit Priority Matrix. It helps eliminate the confusion and provide a clear framework based on your own key criteria.
Why This Matters ~
Opportunities require different types of investments:
Investment of Money: Some opportunities require financial investment. Parting with money can be straightforward if you have the cash, it's easy and doesn’t demand your time.
Investment of Time: Other opportunities require your expertise, knowledge, and effort. This can be appealing if you’re short on cash, but we mustn't lose sight of the fact that time is finite and can't be replaced.
Investment of Time and Money: The crappiest opportunities (IMHO) require both. These can be particularly challenging unless you have abundant resources in both areas (errr - very unlikely!).
How does the Profit Priority Matrix Help?
It Reduces Overwhelm: By scoring each opportunity based on your key criteria, the matrix helps you narrow down your most valuable and actionable options.
This reduces decision fatigue and provides clarity on what to focus on. It empowers you to move forward confidently, knowing what opportunities to say no to.
To prioritise your opportunities, we start by evaluating them based on the following criteria:
1. Investment Type: Does the opportunity require money, time, or both?
2. Brand & Reputation.
3. Fun or Energizing.
4. High Net Profit
5. Ease of Delivery
6. Ease of Sale
7. Sustainability
8. Risk
9. Travel
10. Replicate / Automate
To make it easy for you, I’ve created a free Profit Priority Matrix Spreadsheet. Get your copy here (Google Sheet): https://ssl.ink/i/fb-the_profit_priority_matrix/
It's a very simple tool of course, but common sense is seldom common practise 🤦♂️
It has helped a lot of my clients get clear on which opportunities they should grasp and which they should run away from.
Here's hoping it helps you gain clarity too 🙏
