Women in permaculture often tell me they feel like they have to know EVERYTHING related to permaculture, and they struggle with knowing which skills they need to have, and which courses to take. Today, I’ll share with you some “business savvy” approaches to making that important decision.
At the beginning of my permaculture path, I took all kinds of courses, and loved them all, but ended up spending a lot of money without increasing my earning ability. Now, I use the questions below whenever I am considering whether to invest in a training program. (Note the word “invest.” You want to discern if the training will yield both short-term and long-term benefits!)
- Will the training save me time, money, and struggle? Related to this point, I ask:
- What is not happening now that needs to happen to thrive in my right livelhood?
- What is happening now that I don’t want to happen?
- Will the training improve my ability to earn?
- Do I trust the leaders of the training? Do they have something to teach me?
For geeks like me, you will want to put some numbers to all this, so here’s a an even more “businessy” approach adapted from Vicki Faulkner, Head of Training and Development at the University of Brighton in the UK:
The term “return on investment” or ROI, measures the business benefit derived from the money you invest in your business.
Here’s a simple calculation of ROI:
Net Gains ÷ Investment costs = Return on Investment
Let’s use this example:
I wanted to buy a highly recommended book on time management and a book on backyard chickens, but I didn’t have the $20 for either one. Fourteen days ago, I decided to make coffee at home and not spend the $1.50 daily at the local coffee shop. I’ve saved up the $20, and today–using my best entrepreneurial thinking–I invest in the time management book, and devour it. Tomorrow, I find that I have liberated an extra hour of billable work time in my day. I bill my work at $80/hr, so here’s how I calculate the short-term ROI:
First of all, the Net Gains=Total Benefits – Total Costs, so $80 – $20 = $60
Then I plug that into the ROI equation, so $60 ÷ $20 = 3.
This means that for every dollar spent on the book, I got $3 worth of benefit. Not a bad investment.
But what about over the long term?
If I maintain my good time management habits for the month, and I work 5 days per week, I now have 20 more billable hours, which means I have $1600 more income because of my investment in the book.
The ROI calculation then looks like this:
$1600-$20=$1580 and then $1580÷20=79, which means that for every dollar I spent on the book, I got $79 worth of benefit. Wow, that is a great investment! After a month, I can not only buy the backyard chicken book, but also buy the materials for a coop and tractor! Right on!
The ROI for the year would, of course, be even better. If I only work 11 months of the year, I have $17,580 more than if I hadn’t bought the time management book. Holy smokes!
Here’s the “kicker,” though:
- What if I didn’t buy the book because I bought coffee instead?
- What if I bought the book about backyard chickens?
- Or if I bought the time management book, and never implemented what I learned?
In all cases, I have effectively lost out on $1580 worth of abundance this month, and $17,580 this year.
- When you invest in your business through trainings, you can leverage your money. I bought the time management book, so not only do I have more billable time and more income, but I can decide to use some of my time to design and build an awesome chicken setup. If I had bought the backyard chicken book, the return on my investment would have taken a lot longer, and been a much less potent leverage point.
- When you invest in a training, don’t let your “scarcity gremlins” make your decision. Put on your “entrepreneur hat,” and crunch the numbers to make an objective decision. Does the investment make sense in the long term? (Consider not only the skills gained that add to your professional competence, but also the time and money liberated by getting unstuck.)
- If the answer is no, you can feel really confident about not doing the training—even if a friend is teaching it and you really want to hang out with her. 🙂
- If the answer is a resounding “yes”, then see the money you spend on the training as an investment in your future—and commit to yourself by kicking out the gremlins, and getting creative in finding ways to manifest the investment in YOU.
- When you invest in a training, be “all in.” Don’t just make time to learn the content, but to implement and refine it! Often, the act of investing in a training will kick you into “Let’s DO this!” mode, but also make sure to set up the time and space to really rock the training, because that’s how you will reap the rewards of your investment.
One final, but crucial point: Some benefits can’t be quantified.
How does one quantify feeling more confident, or supported, or reaching new levels of personal and professional mastery? I don’t have an answer to that. But I do know that often, especially for women, those benefits are ones that change their lives. So, when considering to invest in a professional training, also consider this question:
- Will it help me overcome my fears and confusion to thrive in my right livelihood?
Which trainings have you invested in beyond your PDC that have yielded a great ROI? Please share your insights below.