Image via Wikipedia
There are many difficult decisions that the owner of a small business makes on a daily basis. These decisions are many times very difficult and can seem to be a choice between "bad and worse." Chicago Mayor Rahm Emanuel expressed a lesson that he learned from working for two U.S. presidents. He explains that "When the decision was between good and bad, that decision was made down the hall. When the decision was between bad and worse, that came to the office of the President."
Any of these tough business decisions sound familiar?
- Deciding to fire employees or instead to fund losses during a weak revenue period.
- Deciding between retaining or firing your best sales person even though they are detrimental to the company’s morale.
- Deciding between personally borrowing money to fund a great business idea or giving over control to a group of investors.
- Deciding how to allocate resources in a company between marketing, sales, production and customer support.
- Deciding between taking on a new customer and having to borrow money in order to fund inventory for production.
- Deciding to hire the person with experience or the one with the best attitude that fits the company culture.
While there is no way to learn to make “the right” decision” every time, small business owners can learn the process of making the “best possible decision at that right time." Here is how:
- Make no decision before its time. Clay Mathile, former owner of the Iams Company and now founder of Aileron believes that this is the key for any executive. He states, “If you don't make those decisions that you don't have to make, invariably, there's new information that comes, there's more information, better information, better data.” Making a decision at a later date may lead to a more informed one.
- Accept that this is not an easy decision and there are no “right” answers. Stop searching. There is only a “current” right decision based on the information that is available.
- Deciding with heart or head? The small business owner has to admit if they are making decisions based on emotion or the facts. While it is not necessarily bad to make a decision on emotion, this needs to be clear.
- Make the decision after careful consideration, but then do not waver. Commit to one path and take action. Wavering will almost guarantee that the desired outcome is not accomplished.
- When definitive action is taken, learn from the result and then plan the next move. Remember, business success is a series of patient interim steps, not giant wild leaps.
What are the keys for you making tough decisions?
