This One Thing is Costing you Thousands!
The Cost of Complacency
Business owners, there's a silent drain on your business that could be costing you thousands—or even hundreds of thousands—of dollars every year: complacency. It’s something we all fall into at times, and yet its impact can be devastating. At a recent event, we calculated the cost of complacency for one participant, and the result was staggering—$225,000 annually.
Complacency takes three primary forms, and recognizing them is the first step to overcoming them.
The 3 Models of Complacency
Complacently Busy This model describes individuals who are always busy but lack priorities. Their day is consumed by chaos, leaving no room for true progression. Despite the appearance of activity, the business remains stagnant.
Natural Complacency This stems from our negativity bias and fear of stepping outside our comfort zones. This natural tendency to stick to what feels safe prevents us from taking the bold steps we know we should be taking.
Self-Made Complacency This is the hardest to spot. It occurs when you’ve achieved a level of success and begin to coast, assuming there’s no need to continue learning or progressing. The result? Growth stagnates, and opportunities slip away.
The Price of Complacency
Studies show that an average worker spends two hours of their day in a complacent state. For your business, this adds up quickly. Here’s how to calculate the cost:
For Hourly Employees: Multiply an employee’s hourly wage (e.g., $18/hour) by two hours of daily complacency. Over a 250-day work year, that’s $9,000 per employee. If you have 10 employees, complacency costs you $90,000 annually.
For Client Revenue: If it takes four hours to acquire a new client, two hours of complacency means you’re missing half a client per day. Over 250 days, that’s 125 lost clients. Multiply that by the profit per client ($900 in one case study), and you’re looking at $112,500 in lost revenue. Combine this with employee complacency, and the annual loss could be upwards of $225,000.
Take Action Against Complacency
Complacency may be natural, but it doesn’t have to be inevitable. By understanding these models and leveraging strategies like the Four Pillars of Top Performance, you can combat complacency and unlock massive growth in revenue, culture, and impact.
I’d love to help you identify where complacency is costing your business and provide strategies to overcome it. Comment the word "Profit" below, and let’s schedule a call. Together, we can transform complacency into progression and profits.
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