Decisions

Thinking of starting your own business and are a bit overwhelmed by the responsibility for making all the decisions? Here are some tips for making major decisions I have learned:

• DATA You never have all the data, even if you think you do. What you need is ENOUGH data to make a reasonably accurate assessment. Trying to gather all the data leads to indecision, and making decisions without it often leads to bad decisions. You need a plan to figure out what you need to know to make a decision.

• CASES & Probability Assemble the data for 3 scenarios – best case, worst case, and probable case. Gather data for the best and worst case scenarios, and estimate how likely that outcome is. The highest probability for each factor is your probable outcome, and this is the one you build and shape your plan around. What are the possible outcomes and how likely are they to actually happen?

Serious outcome, but with a low probability of it ever happening? Build checks and controls to avoid it. Low impact, moderate probability? Safely ignore. The point is to find and chart high probability pathways to a successful outcome.

• TIMELINE Every decision has a timeline. If you have to give first aid, the timeline to make decisions is very short. Most decisions have a longer timeline. Deciding on buying a building? You have time to make an informed decision. If you don’t have time, there are two things you can do to avoid trouble: make an incremental decision, and choose a path that leaves the most of the best possible outcomes open. What part of the decision must be made right now, and how does that impact my future options?

Decisions can be overwhelming because of the size of the impact, the uncertainty involved, and the sheer number you need to make in a constrained time frame. Use these tips to break down the problems and scale them down to conquer them.

What are your top tips for making decisions?