Thursday Thoughts: Margin Creates Opportunity

Michelle and I love hiking and regularly fit it into our dates, and we always find a way to work it into vacations. Recently, during a weekend morning, we had about a two-hour window before we needed to leave for some commitments, so we decided to get up early and go for a hike. When we got to the midway point of the loop, we were ahead of schedule and briefly discussed going a little farther before turning around or just leaving some margin in our schedule. We decided on the latter.

About halfway through the hike back, there’s a wide, tall tree that makes for a good photo spot. As we passed, there were several older couples working to take pictures, and one asked if Michelle would do it for them. She deftly took their phone, switched to pano, and did a vertical pano that captured them and the entire tree from roots to tips. They were amazed and pointed it out to the others in their group, and Michelle was requested again. Five photo couples later, we had to get going, and the skill was being passed on to other hikers, even some that didn’t speak English. None of this would have been possible if we hadn’t had margin in our schedule.

Margin comes in a couple of different formats, and that margin is the basis for this week’s thoughts. First, let’s start with time. When we pack our schedules to the brim, we leave no room for the unexpected joys and opportunities that life throws our way. That morning hike turned into something special because we allowed ourselves some flexibility. If we had planned every minute of our day, we would have missed the chance to help those couples and create a memorable experience for everyone involved.

Having a little extra time in your schedule can greatly reduce your stress. Knowing that you have some buffer time means you’re not constantly rushing from one task to the next. This can make your day feel more manageable and less hectic. That morning, instead of feeling rushed, we enjoyed our hike and the unexpected encounters, making the experience much more enjoyable.

When you’re not pressed for time, you can make better decisions. Whether it’s at work or in your personal life, having some breathing room allows you to think things through rather than making hasty choices. On our hike, the decision to turn back early wasn’t rushed. We pumped the brakes and made a thoughtful choice that ultimately led to a series of positive events.

Now let’s transition to margin in business. Many times, we undervalue the disservice we do for our customers when we don’t charge an appropriate margin. If your business isn’t an ultra-efficient low-cost provider, then not making an acceptable margin from the customer is inappropriate and frankly irresponsible business. Your customer purchases from you because of the expertise you offer, the inventory or supply advantages you possess, and/or the level of service you offer. Those things aren’t free, and if you choose to forgo margin, you are robbing your customers of the opportunity to utilize those services in the future. Without margin, the company can’t continue to invest in people (jobs are eliminated), facilities (lowering inventory and purchasing capabilities), or assets (lowering service capabilities).

Having margin allows the company to make investments and choices for greater service opportunities. It allows them to invest in employees, ensuring that the customer is served by talented professionals and those professionals are rewarded fairly.

Intentionally capturing margin allows for better decision-making opportunities for your time and business. Both of which serve our customers better.

That leads me to this week’s challenge… build some extra margin. Capitalize on the value of your offering and ensure margin in your business. Then find margin in your time. Whether it’s leaving a little extra time between meetings, not packing your weekend with plans, or just allowing yourself some downtime, try to create space for the unexpected. You might be surprised at the opportunities that come your way when you’re not rushing from one thing to the next.

I'm thankful that you were willing to go to work today, that you took the time to read this, and that you're part of what makes this world amazing!