Running a business isn’t easy. Customers, invoices, suppliers, and cash flow often have you running from pillar to post without time to take a step back. Balancing client demands with keeping your team happy can be tricky too, and often leads to bad decision making.
Knowing when to say ‘yes’, and more importantly, when to say ‘no’ can have a long-lasting impact on your business. Avoid decision fatigue by making the hard choices early on in your business that set you up for success. While there is no exact formula for making the right decisions every time, there are some steps you can take to help make the best possible decision at the right time.
Not sure what to do? Try the following five steps when making a tough decision:
1. Accept there is no one right answer
This is important as people often get stuck trying to make the right decision, which results in unnecessary delays, which could cost you money.
2. Separate the heart from the head
It’s important to admit whether you’re making a decision based on facts or emotion. It’s not always bad to make decisions based on emotion, but this needs to be clear from the start, otherwise you may end up in a situation that you don’t want to be in.
3. Consider alternatives
Weigh up your pros and cons, and understand the impact and risks associated with alternatives. Do your research, speak to people who’ve had similar experiences. But, as per point 1, don’t get too hung up on this step.
4. Make decisions timeously
Take some (but not too much) time to think about your decision. Sleeping on it often helps. However, it’s important to wake up in the morning and MAKE the decision. Waiting too long often results in a decision being made for you.
5. Be agile, but don’t chop and change
Be open to suggestions and improvements, but once you’ve considered all options and made up your mind, stick to your guns. Changing course too often makes you seem less confident and it hampers consistency within the business.
Making tough decisions can be a stressful and emotional process. Speak to people you trust, and think long-term before making important decisions that may be critical to the sustainability of your business.
Need a different point of view before making a tough decision? Contact Outsourced Finance to get honest, professional advice.