While it’s easy to overlook, opportunity cost is a force to be reckoned with. It can have big implications for your company. But what, exactly, is opportunity cost? Simply put, opportunity cost is the value of whatever you give up to make a certain decision. It is involved in every decision any person makes. Sometimes it is monetary and sometimes it is harder to measure, but it always affects our decisions whether we realize it or not.

When we make decisions, we choose to give up something scarce (usually our time or money) in exchange for something we want. We ensure maximum profits by minimizing opportunity cost losses. For example, consider the implications of throwing a party for employees during work time. The monetary costs of throwing a simple party include decorations, food, prizes and maybe some entertainment. However, you must also take into account opportunity cost—by throwing the party, you are reducing productivity and paying employees for work they aren’t doing. This could amount to thousands of dollars lost and is thus a factor to determine when planning your party. You may choose instead to do it after hours or cut the party short to decrease costs.

Once you understand opportunity cost, it’s easy to see how it influences business planning. If you invest $1,000 in a certain stock and lose $500 in the first month, you might think your total loss is $500. However, you have also lost the money you would have made had you invested that money elsewhere. If you had invested that $1,000 in stock that has doubled in value over the last month, you would have made $1,000. Thus, you must add that $1,000 to the $500 you lost. When you take opportunity cost into account, you see your real loss is closer to $1,500. When planning for your company, be sure to take into account opportunity cost to determine actual risk and increase your likelihood of success.

Many of the top entrepreneurs in the world lack a college degree. Rather, they sought opportunities to learn from established leaders in the business world. By working with mentors, they were able to learn the strategies of success. Other business leaders attended institutions of higher learning, but augmented their classroom studies with real world application. In this way, they learn how to utilize their knowledge in the most efficient way. They also see the occasional errors of business theory and rectify them with hands on immediacy. 

Don’t let a misguided definition of education prevent you from learning. You don’t have to be officially enrolled at a school to learn. You don’t have to be reading from a textbook to study. Rather, seek out opportunities to learn from those around you. Study the success of others. Ask for their advice. The most successful entrepreneurs in the world got where they are because they asked the right people the right questions.

–James Joyce 

Mistakes are inevitable in life, but learning from them is not. We must dedicate ourselves to improvement if we wish to make the most of these opportunities for growth. Rather than quickly sweeping a mistake under the rug, we should take the time to understanding what was done wrong and how it could be done better in the future. 

Many of history’s greatest figures have spoken on this subject. Albert Einstein, the legendary scientist, suggested that anyone who doesn’t make mistakes isn’t trying anything new. Truly, mistakes are a sign of growth and development. They serve as mile markers as we leave our comfort zone and push into new territory. 

By accepting mistakes as a necessary byproduct of life, we can use them constructively. Each error should be examined and used as a “portal of discovery.” This thoughtful approach to improvement will ensure a life full of accomplishment and worth.

Take the example of Silly Putty. During World War II, U.S. scientists were given the task of finding a potential rubber substitute. In one of their experiments, they reacted boric acid with silicone oil and the silicone polymer we all know and love was created. With no apparent military use, it was eventually marketed as a toy. It has since found use in the medical field and in space.

There are three important points to take away from this story:

1. It’s okay if the result you come up with is not what you initially intended.
2. Just because your result isn’t what you intended, it doesn’t mean it’s not valuable.
3. Pursuing a result is going to bring more results (intended or otherwise) than not pursuing anything.

In business, we have to be looking for answers. Whether through online courses, traditional education, books, mentors, or other channels, we’re not going to find ways to improve our businesses without putting in the effort. Serendipity most often comes to those who are already looking and working; very rarely will a solution just drop out of the sky (a la Sir Isaac Newton).

There are plenty of ways for you to continue your education, and here are a few to consider:

• Learn On Your Own There are thousands of blogs online or books you can check out to learn about whatever you want to learn about. Podcasts, social media sites, and other avenues make it easy and inexpensive (or even free) to gain valuable insight.
• Learn In A Classroom There are plenty of colleges and universities that offer night classes or other part-time options. While this will cost some money, it will give you access to a structure and a system that may help your learning process.
• Learn At A Conference A weekend seminar or an annual conference are great ways to learn about what’s going on in the world today. It will cost you, but for a good conference, the payoff can be worth it. (Alternatively, start or sponsor your own conference or try to present at one. Nothing will incentivize your learning more than having to give a lecture.)

Continual learning will help you stay sharp and may give your business the edge it needs to succeed.

How to use a search engine

Without search engines, the vast wealth of knowledge that is available to us online would be useless.  If we can’t find the information we need, it might as well not be there.  Learning how to effectively use search engines is one of the most important skills an internet user can develop.  Here is a link to an article that demystifies search engines: http://www.learnthenet.com/how-to/search-the-web/index.php.  There is even a website dedicated to using one of the most popular search engines in the world: Google.  Check out www.googleguide.com to learn everything you need to know about conducting searches with Google specifically.

How to send an email

Email is one of the most common ways people use the internet.  As a child, I remember having an email service for at least a year before my family finally got an internet service that allowed actual surfing.   A great guide on how to send emails is located here: http://www.learnthenet.com/how-to/send-email/.

How to bookmark a website

In your internet exploring, you will undoubtedly find websites that you want to be able to return to quickly and easily.  Bookmarks are place holders that you can add to a list on your web browser that will allow you to return to your sites with one click.  There are free services that you can use to organize your bookmarks like www.delicious.com or www.google.com/bookmarks.  A simple article that explains bookmarking for beginners can be found at http://www.learnthenet.com/how-to/bookmark-websites/index.php.

How to subscribe to an RSS feed

RSS feeds are indispensible for people who find themselves frequently returning to the same blogs or websites to check for updated content.  With RSS feeds, readers can choose to subscribe to frequently updated blogs and websites.  All newly posted content will be automatically sent to the user’s RSS feed and they can read them all in one place rather than visiting each separate website every time they want to read the new content.  Guidelines for setting up an account with an RSS service are outlined here: http://www.learnthenet.com/how-to/subscribe-to-rss-feeds/index.php.  Some of my favorite RSS reader services are www.google.com/reader, and www.feedreader.com.

How to start social networking

Social networking is a great way to stay in touch with friends and family or even to market a business.  On social networking sites, internet users can create personal profiles that house their own pictures and information.  Users can interact with other people through their profiles and create “groups” for individuals with similar interests.  Businesspeople can market their products for free on social networking sites by creating profiles for their businesses and inviting people to become “fans”.  Here are some tutorials on how to use the most common social networking sites: http://www.learnthenet.com/learn-to-social-network/, http://www.aarpmagazine.org/lifestyle/facebook_step_by_step_guide.html?CMP=KNC-360I-MSN-ATM&HBX_OU=52&HBX_PK=how_to_use_facebook&utm_source=MSN&utm_medium=cpc&utm_term=how%2Bto%2Buse%2Bfacebook&utm_campaign=MSN-ATM%2B-%2BLifestyle.