I was enjoying a mentoring video from Daymond John earlier this week, and at one point he began to speak about the acronym O.P.M., which to many business owners means “other people’s money.” This phrase commonly makes reference to entrepreneurs encouraging a cash investment, in their start-ups or existing endeavors. The lesson shared here, was that the most valuable contributions to your business, may not be cash at all.
Within the content of the video, Daymond explained that the “M” in O.P.M can derive its meaning from a variety of things, aside from just “Money.” In fact, Daymond says that “other people’s …” mindpower, manufacturing, marketing and mistakes, can make a better investment in your business; than cold, hard cash.
Other People’s Mindpower. In some instances, business owners are confronted by unfamiliar circumstances, that have become an obstacle to their company’s growth and development. Although entrepreneurs wear many hats, they are certainly not expected to be knowledgeable or experienced, in every aspect of their business’ operation. Sometimes it is beneficial to look to others, for wisdom, guidance and inspiration.
Other People’s Manufacturing. The cost of making a product, has caused many ideas to suffer heartbreak and defeat, along the rocky road to fruition. Because manufacturing costs are a common obstacle to progress, finding an affordable solution would ease alot of hardship for many business owners. Daymond suggested sharing profits. For example, if you needed shirts manufactured, a business owner may offer $3 of the profit on each unit sold; in exchange for manufacturing the product.
Other People’s Marketing. Getting a business, idea or product to the marketplace, and in front of the consumer audience; is an arduous task. With social media and Internet marketing colliding with traditional media, the options and opportunities are endless. Regrettably, marketing budgets are not (endless). In much the same manner that business owners would approach manufacturers, a marketing agency is very likely to be in favor, of negotiating a similar profit-sharing agreement.
Other People’s Mistakes. I have always said: a failed attempt offers a valuable opportunity to try again, with better odds of success. Take every opportunity to learn from what has not worked for other people or businesses, and apply this knowledge to the development of positive strategies, that promote growth and prosperity in your business and your life.
Many business owners have the mistaken belief that they need money to expand or improve their business. Although somewhat correct, the money they need would most likely be used to hire a consultant (mindpower), improve manufacturing and/or launch a marketing campaign. The only option that would not cost you anything is other people’s mistakes. That comes at their expense. With that being said, establishing strategic partnerships and building meaningful relationships with other businesses, can be a much better investment; than cash.