Starting a business requires confidence and decisiveness…
Do you have difficulty ordering your dinner from a restaurant menu? If so, entrepreneurship may not be for you. As we consider what it takes to start a new business, we absolutely cannot overlook the importance of decision making. As an entrepreneur, you will be looked to for the final decision on every aspect of running the organization. Ultimately, you may be able to hand these tasks over to a CEO or COO, but this is your business, and you want to be sure that you are setting it on the right path – how can you do that if you aren’t prepared to make tough calls?
Understanding the Significance of Decision-Making
Decision-making serves as the linchpin of entrepreneurial success. Just consider the basics: will you form an LLC, an S-Corp, or just act as a sole-proprietorship? How much budget can be allocated to hiring competent personnel versus how much will be spent on marketing and product development? What logo best represents your vision for the brand? The adeptness with which decisions are made profoundly influences the trajectory of a business – success often depends on a person’s ability to make quick and informed decisions.
Navigating the Decision-Making Process
Decision-making is like a journey. It’s a well-planned trip that takes you from problem to solution. If you are a good decision maker, then you reach your destination just in time, but there are pit stops along the way to gather information, weigh options, and analyze risks before ultimately choosing the best course of action. If you stop too long at any one of those refueling stations, then you are likely to arrive too late.
Strategies for Enhancing Decision-Making Proficiency: Establish Clear Objectives
Just like you would find it easier to order from a shorter menu, limiting the options can make it much simpler when making decisions in business. Create the hierarchy for decision making in the beginning – the business plan. It’s something like choosing between Chinese, Italian, or Americana before going out to eat. You know you’ve already narrowed the list of options available to you before you step foot in the restaurant. Your business plan, when written with a clear mission, vision, and goals will help to ensure that you are making choices that help you make good time on your journey.
With your business plan as the roadmap, you can use other pieces of information to avoid traffic jams and detours. Gather data when applicable and evaluate the risks versus potential reward. Then, ultimately, be decisive. Once you’ve decided, trust yourself enough to stick to it.