The diminishing return curve guides you in weighing the costs of business coaching against the benefits. Until you’ve reached the flat part of the curve in business planning, marketing, sales, and client loyalty, you will receive more in benefits than the costs.
The diminishing return curve teaches important lessons about business success.
The curve measures incremental benefits or results (the y-axis) against the costs to achieve them (the x-axis). While on the steep slope of the curve (graph point: A), a small investment produces significant results; there’s a high ROI.
As the curve flattens (graph point: C), to gain similar results, much more cost must be incurred. Most businesses that achieve sufficient proficiency for a process or activity choose to solidify the results and not pursue more investment; the additional benefits don’t justify the costs.
If you’re up on the curve and have achieved a measure of expertise in, say, sales, marketing, or business planning, and you still want to attain improved results (and are willing to pay for it), then you will benefit from one-on-one coaching.
Whether it is business planning, time budgeting, sales skills, proposal writing, objection handling, target marketing, or any number of business skills, if you’re still on the steep part of each skill’s diminishing return curve, then the investment you make in Practice in Action! business coaching will provide benefits greater than the costs.
That makes Practice in Action! a profitable transaction.