The hidden cost
There is a cost in every choice we make, but we rarely pay attention to it or even calculate it. If you want to be more strategic in your work you should consider this...
Ever heard of "opportunity cost"?
It's a simple idea from economics that means the cost of choosing one thing over another. For freelancers or independents like you, it's about knowing the true cost of doing something versus doing nothing—or choosing one job over another.
Let's make this super simple
Imagine you're deciding whether to update your website or not. The opportunity cost is what you lose by not improving it, such as potential new leads. Every choice has a cost, and knowing this can help you make smarter decisions.
Why it matters
Why does this matter to you? Because as a independent, you need to know what an hour of your time is really worth. This isn't just about setting rates; it's about making the best use of your limited time.
Think about your daily tasks. Some might be worth €10 an hour, others €100, and some strategic tasks, like crafting your offering, could be worth €1000 an hour. Knowing this helps you decide which tasks to focus on and what you might want to delegate. (Inspiration taken from Codie Sanchez)
Example: this newsletter
Let's use this newsletter as an example. We comb through job boards and Slack channels to find the best freelance gigs and RFPs in the sustainability sector. This saves you two hours each week. Let’s say this is a €10 task, which means we are saving you €20 a week, €80 a month, and €1040 a year. That’s your opportunity cost saved!
Using opportunity cost with clients
Understanding opportunity cost isn't just about managing your own time—it's also a powerful tool to use with your clients. Here’s how you can apply it in conversations:
Ask your clients: "What is the cost of not improving your current process?" Help them see what they might lose by sticking to the status quo.
Discuss potential gains: "If you had an extra €10k to invest in your business, where would it have the most impact? Why?" This helps clients think about the most impactful options.
Highlight the benefits: When proposing a service, frame it in terms of what they stand to gain versus the cost of inaction. For example, "By optimising your resource use, you could reduce waste and save money—doubling the effectiveness of your initiatives."
Ever calculated your opportunity cost? I'd love to hear if and how you've applied this concept.
Want to learn more about this concept? A couple of years ago, I recorded a podcast with Alen from the d.MBA on the concept of opportunity costs. Watch it on YouTube (you can see my home mountains) or listen to it on Spotify:
So why is this newsletter free when we actually provide so much value?
You get to see only 10 gigs, but our paying members get access to all the opportunities and much more. So, if you want to delegate some tasks to us, explore joining IMMA during one of our Explore IMMA sessions.
Interesting opportunities for you
We comb through numerous job boards to find freelance opportunities, saving our members hours of time. Here is a selection of 10 opportunities for this week.
Strategist - Nice and Serious
🤝Contract
Consultant event organiser - Economic Change Unit
💰 £250-£300/ day
🤝Contract
Head of Impact Academy - Socious
📍Remote
💰$60000 - 100000
🤝Fixed Term
RFP: Start Network Systems Change Playbook – Publication of content through the creation of a microsite - Start Network
📍Remote
🤝 RFP/Tender
⏰ May 10, 2024
Consultancy: Review of IPPF Gender Equality Policy - IPPF
🤝 Contract
⏰ May 7, 2024
Consultancy - MEX
📍UK
💰£7,000
🤝Contract
⏰ May 6, 2024
Researcher - The Resolution Foundation
📍London
💰£53,720 - £78,150
🤝Contract
⏰ June 3, 2024
Bid Writer - Grantify UK
📍Remote, UK based
💰£55/hr - £60/hr
🤝Contract
Impact Consultant - Housing Better Society Capital (previously Big Society Capital)
📍Hybrid, UK
🤝Contract
Marketing manager - Amplify Goods
📍Remote
💰£120-200 per day
🤝Part-time
Found something interesting for a friend. Share the newsletter with them.
Behind the Scenes at IMMA:
I'm eager to connect with others who are working on initiatives similar to IMMA Collective or who have experience in community building. If you know someone, please introduce us—that would be great!
I've heard from some of you who are eager to join in but prefer not to spend money right now. No worries! Here’s a quick rundown of all the free resources we offer, aside from this newsletter:
The quiz: "Are You Ready to Freelance?" Check your readiness score and get actionable tips to take the leap with less risk.
Our monthly networking event : Make meaningful connections with other like-minded professionals to expand your reach. The next event is happening on the 15th of May, and we have more than 50 people signed up so far.
Thanks for reading,
Take care,
Lilli
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Whenever you crave more support, join a free Explore IMMA session to get to know our community a little better.