Mark J. Podolsky explains why you shouldn't do everything yourself. Even if you're better at a task than your assistant, your time is worth more spent on revenue work. LeBron James wouldn't mow his own lawn, and neither should you.
Hey, it's Mark Podolski, the lane Geek from thelanegeek.com let's get started with another episode of having a virtual cup of coffee together in coffee talk. Pretty good. A little black. It's good. Okay, so today let's talk about why we don't do everything ourselves. Why not? I mean, the easiest and cheapest person to hire is yourself. Well, David Ricardo, an economist in the 1800s, explained this in an economic theory called comparative advantage. So what's comparative advantage? So a person has a comparative advantage at producing something if he can produce it at a lower cost than anyone else. So having a comparative advantage is not the same as being the best at something. In fact, someone can be completely unskilled at doing something, yet still have a comparative advantage at doing it. So how can that Happen? Let's take LeBron James, for example. So LeBron has an absolute advantage at playing basketball, but he might also be able to type at 90 words per minute. So he has an absolute advantage at typing and at basketball. However, because he makes millions of dollars entertaining people by playing basketball, the typist that he would hire would have the comparative advantage. Because LeBron doesn't need to spend his time typing. He can hire a typist at a lower opportunity cost than what he can do playing basketball. So even though LeBron takes time from shooting hoops to do all his own typing, he sacrifices the large income he he earns from doing that. So it's opportunity cost. So let's take a land example and working on your land business. So I may be better at conducting due diligence than my virtual assistants just because I've been doing it for 12 years. I have the absolute advantage, but doing due diligence doesn't make me any money. So the virtual assistant would have a comparative advantage as long as I've trained them on how to do due diligence. So that's why I don't spend all my time making maps, figuring out the GPS coordinates for a property. I spend my time figuring out ways to market my property and sell my property, because that's what brings in the revenue and pays for my virtual assistant's time. So amazingly, everyone has a comparative advantage something. So the moral is this. To find people's comparative advantages, do not compare their absolute advantages. Compare their opportunity costs. If you are working in your business or in your land business and not on your land business, then you need to call me and have a coaching session and I'll teach you how to hire a players only and create a virtual assistant team that's in my investors toolkit. Anyways, if you want to learn more tips, tricks, techniques, subscribe below to more Coffee Talk episodes or obviously I want you to listen to the podcast. Go to thelandgeek.com download the free passive Income blueprint and we'll see you next time for a virtual cup of coffee. Thanks a lot. Bye bye.
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