As an entrepreneur, a key lesson I have learned is about the importance of making decisions. It is not bad decisions that are the bane of business but indecisiveness. We are faced with so many different dilemmas almost everyday of conducting business, and each of them requires us to make decisions. Being unsure, we avoid making decisions and in the process end up losing time, money and opportunities.
Fear of wrong or bad decisions can keep us needlessly immobilised — because when we make decisions, we can never be certain of the outcome. We can, at most, make a calculated guess because there are a multitude of factors influencing the outcome of any business decision, and most of them are beyond our control.
Risk is inherent in any business. Even random probability tells us that 50% of all our decisions will be wrong. But the remaining 50% would be right. And that’s good news, right? By making no decision, we effectively forfeit this 50% chance of success.
Another advantage of making prompt decisions is that if it turns out to be unfavourable, you can salvage the situation faster. The biggest and most successful businessmen attribute their success to prompt decisions – not right decisions.
Another thing about decision-making is that you get better with practice. The more decisions you make, the sharper your business acumen becomes. Warren Buffet says, “In the business world, the rearview mirror is always clearer than the windshield.” Or as someone once said, “Good decisions come from experience, and experience comes from bad decisions.”