How Successful Entrepreneurs Make Decisions
We all know that success is not achieved overnight. There are many factors that come into play, especially for people who need to be successful in a business.
The product, target market, economic circumstances, and many other factors can affect the state of every business. And even if the circumstances seem clear and manageable, unexpected challenges and obstacles can come along and ruin everything.
Entrepreneurs are well aware of these unexpected challenges. That’s why anything in business and investing is a risk. Others may think that taking a huge risk is also like gambling – but there is a huge difference.
Risks of failing can be estimated (especially in business), and the steps and outcome can be planned carefully. In gambling, the results and circumstances are completely out of your hands.
Calculating risks also comes with making important business decisions. This would include knowing which things to prioritize, and which aspects should be improved or upgraded to further minimize the risk of failure. Successful entrepreneurs are no stranger to difficult choices.
Sometimes, some things should be eventually sacrificed just to keep the business afloat. If you want to know how successful entrepreneurs make decisions, we explain it in just three aspects below:
Compartmentalize and focus only on things that MATTER.
Most of us love instant gratification. We easily get attracted to spend for vacations, go shopping and buy new gadgets – believing that we deserve the reward after a long day’s work. We tend to save for a new car, new iPhone, a tropical vacation, concerts or Coachella, not realizing that more than half of our income has been spent on these things already.
At the end of the day, these will not even give you additional income or revenue. Sure, you may have enjoyed your vacation or felt good about using a new iPhone, but by the end of the month, you will be back to square one and work your butt off again to afford the things you need.
Successful entrepreneurs on the other hand, know how to specify their wants and needs. They are not fans of instant gratification. Saving up for a business capital and investing on business materials comes first on their list. Who needs a new car or phone, if your current one is still functional anyway?
Lastly, you must also know how to prioritize small decisions from big ones. There are choices in life that are just personal preferences – like what to wear, where to go, where to eat, what gifts to give, etc. But there are harder choices that require deep thought and reflection, and this is where you should spend more time and energy in.
This could be choices in career, business decisions, or moving into a new town/city. Reserve your mental energy for these kinds of decisions instead of dwelling too much on personal preferences and appearances.
It’s no wonder why Mark Zuckerberg wears the same type of t-shirt everyday – because he reserves his time and mental energy in making big business decisions, rather than just trying to look smart or successful in public also with that he/she must know how to make money with online business.
Master the art of thinking objectively.
In life, it is easy to get distracted about little things and incidents such as spilled coffee and email misunderstandings or arguments. While these incidents may affect your mood in the meantime, successful entrepreneurs know that they should not dwell on these too much.
Sure, it is quite annoying, but don’t let that control your day (or week). If you linger on to these incidents, the tendency is you might hold ill feelings to whoever you may had altercations with, and this can hold back future collaborations and teamwork – even from the best people on the team.
So if you just had a misunderstanding with a coworker, or a waitress just spilled your coffee, just talk it out, settle and say sorry, and let it go. You don’t have to win every argument you get into. Always ask yourself if it is worth it to prolong the argument, or just settle it for now and let it go with lessons learned.
Accept past failures and deal with bad decisions.
The truth is, everyone makes bad decisions. In fact, bad decisions help us improve our own decision-making process. We learn from our mistakes, and successful entrepreneurs know this too well. Failures are a part of life, and no one is immune from it. It is important to accept past failures and bad decisions, because acceptance is the first step towards reflecting and learning from it. You have to deal with these poor decisions, learn lessons and take notes to avoid repeating them and must aware with the importance of bench marketing for the business.
Successful entrepreneurs are not always great at making decisions. Experience and mistakes are the only things that can sharpen decision-making skills. You may start practicing good decision-making on smaller things. Start with your daily routine. Think about how you can increase your efficiency and productivity in a given day. Write them down if you must.