Picture yourself back in 1962, hanging out in a cool, dimly lit bar and bopping along to The Beatles’ tunes before they became legends.
You’re in good company—an executive from Decca Records is there too. But, instead of signing the soon-to-be global sensations, he chooses another band. Can you believe it? This was a huge oversight, as The Beatles went on to rock the world with EMI instead!
Fast-forward a bit, and you have another “oops” moment in decision-making history.
It’s 1999, and George Bell, the top dog at Excite.com, is offered Google for just $750,000. But he’s like, “Nope, not my cup of tea.” Google is now a trillion-dollar behemoth raking in around $500 million daily! Poor George must have regretted that decision.
The point here isn’t to make you worry about every decision you make but to show that it’s vital to do your homework and make informed choices.
We might not be choosing between signing The Beatles or buying Google, but the decisions we make every day can have a significant impact, too.
So, what’s the secret to better decision-making without overthinking it?
The good news is that it is pretty simple – we need to know the answers to three important questions:
Where are we at?
Where do we want to go?
How can we get there?
Let’s look at each one in turn:
Where Are We At?
When it comes to decision-making in business, a great starting point is to get a grip on your current state of play. It’s kind of like setting off on a road trip—you need to know where you’re starting from before you plot your route, right?
So, let’s get curious. Have a think about questions like:
● How much is in the bank today?
● Do we have new clients on the horizon to onboard?
● Are contracts ending without renewal?
● How much value is in our working stock?
● Do we have enough resources to deliver our offering right now, and if not, how can we ensure that we do?
Knowing the answers to these types of questions gives you a crystal-clear picture of where you stand today. Once you’ve sorted that, you can envision the future!
Where Do We Want To Go?
A solid business plan should have the answer to this question etched deep within its strategy. But, as we all know, life has a funny way of throwing unexpected surprises our way—think about the last couple of years, with all the crazy curveballs like Brexit and Covid.
Many people made some pretty major life changes during these times, trading city life for the countryside or swapping long-standing careers for brand-new paths.
New opportunities are popping up everywhere, but remember, we don’t have to pick them all, especially if they’re leading us down a road we don’t like.
So, take a moment, put your feet up, and really think about where you want to be—not just in your business but also in your life.
Striking a balance between the two is incredibly important and will clarify the decision-making process.
How Can We Get There?
I’m sure you’re seeing how questions one and two have paved the way for simpler, smarter business decisions, right?
Now, it’s all about laying out a plan of action. Here’s my advice to make it happen:
Start with a list: Start by jotting down those big decisions that need to be made. Without a clear pecking order, everything can seem equally important, which makes it tough to give each decision the time and attention it deserves. So, start by prioritising!
Take stock of your resources: Think about what you need to make your dreams a reality. Do you have the right team to bring your goals to life? Who’s doing what, and what information are they basing their decisions on?
Design a decision-making system: This is the secret sauce for smart decisions – A holistic approach that factors in all the nitty-gritty details—roles, systems, and processes needed to make things happen. Please don’t overlook this step; it can save you from some headaches down the road.
Aim for 51% confidence: During a talk in Brazil, Barack Obama shared some wisdom about decision-making. He said feeling 51% sure of your facts and choices can often be good enough. If we always hold out for 100% certainty, we could end up stuck in a loop of overthinking and time-wasting. So, try to reach that 51% mark. Let’s dive in and start making those decisions!
So, when making decisions, remember the golden rule: do your homework!
By taking the time to understand where we currently stand, where we want to go, and how we can get there, we set ourselves up for smarter and more successful choices.
Here’s to happy decision-making!
If you’re looking for more support and accountability with your business decision-making, schedule a complimentary 30-minute business profit growth session with me HERE.
