Critical decisions require critical self-reflection

Editor’s note: Michelle Stockman is an independent consultant with her company, Fort Smith-based Msaada Group. Stockman earned a bachelor’s degree from Loyola University-Chicago in communications and fine arts, and earned a master’s in entrepreneurship from Western Carolina University. Her thoughts on business success appear each week on The City Wire.

There is no right or wrong answer in life decisions. Rather, the decisions we make to select the path we walk are filled with confidence, uncertainty or regret. Business owners know that making decisions can be a gut wrenching experience, especially when there is not enough good information or data available to help guide the choice.

The decision to open is as difficult as the decision to sell or close. The decision to introduce a new product is as difficult as the one to revamp a sluggish yet trusted product. The decision to bring in equity partners is as critical as which bank to trust. The decisions on vendors, suppliers, markets, channels, consultants, brokers, and more swarm the minds of business men and women daily.

Given the amount and complexity of critical decisions that are needed for any one business, decisions are often made in haste, avoided or made in faith.

Decisions that are made with good information and data, that consider the risks, contingencies to the risk and vet all possible solutions is the start to making the best possible choices for the business. Additionally, business owners often need to step out of their comfort zones in order to overcome any fear that may be at the root of procrastinating on the decision.

For example, there is a technology start-up business within Arkansas that has been busy developing their product for some time. This business has been busy for the last seven months finishing the software beta while branding and preparing to launch the business. This business has an incredible opportunity to see explosive growth; however, the company’s founding principles have gotten stuck in making weak decisions by avoiding the data needed to guide their development.

The business isn’t too far along to correct itself, but its leadership has allowed for spending too much time and money trying to perfect the software. Meanwhile, the business is short changing itself on creating a solid marketing plan and pre-selling the software. This decision loop, if continued, will jeopardize the business even getting out of the starting gate. Decisions are being made to delay sales or marketing for the sake of the software, yet decisions are not being made in regards of how to get customers to buy into the software.

The worst part of this example is the business owner, does not see how his critical decisions are hurting his business already. Despite ample guidance from various experts, the software development continues to be the focus while critical decisions and guidance for reaching the market sit like a white elephant in the room.

When key decisions need to be made, ask yourself if all the risks have been identified and weighed. What information, if you had it, would help make the decision? What are your anticipated outcomes to your decision? Are there alternative decisions to consider?

We’ve all been in the loop of avoiding decisions or living through the results of not so great choices. You’re not going to lunch or to a movie and “I dunno” is not an option for business leaders. Understand what decision needs to be made, what information is needed to guide the decision and make the decision.

Once the decision is made, live up to it (through good or bad results) and learn from the experience.

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Stockman can be reached at [email protected]