Why Decision-Making is Crucial for Your Business Success?

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Decision-making is an indispensible behavior for any progress you want to have. It is important for all of your choices; for your education, for taking care of your health, for your personal life, for your financial lifestyle, for your social life; and for your mindset. And it is definitely crucial for your business setup and your professional success.

Still, it is energy-consuming and sometimes even painstaking. That’s why many people avoid it. It may so happen that they are not good at it, because they don’t practice it enough.

The process of decision-making

What is this process that provides headache to so many people?

It so happens that in order to succeed, decision-making has to follow of a chain of steps. And each one of these steps needs to be adequately performed, in order to obtain a good outcome. These steps are:

  1. Identify the problem or goal, for which you have to make the decision.
  2. Gather relevant information about the situation.
  3. Identify the options of the possible decisions you can make.
  4. Consider the potential consequences of each option.
  5. Choose the option that fits best to your action plan.
  6. Proceed to realize this option.
  7. Assess its results and see if this decision brought you nearer your goal, or further away. See which are the corrections or ameliorations you could make.

Move to the next decision that follows this first one. Use the same chain of steps to proceed to your goals.

Why people fear of Decision-Making?

As you can see, decision making is about highly intellectual activity. During this activity, you need to be focused on your goal. You also need to be methodical about the necessary choices during each one of the steps. All this alertness is something that may overwhelm a lot of people and they try to avoid decision making.

Of course, when you avoid making a decision that means that you decelerate your business’s progress. If you keep postponing, then you end up procrastinating. This leads to low performance for your professional and business goals. That’s why not being afraid of decision making is a necessary component of your success. Another reason of people being afraid of decision making is due to the consequences evoked by the process. People are often afraid that a decision they have made is not a good one and it may lead to a failure instead of success. The prospect of failure –and the innate human fear of it- urges people to avoid serious decision-making.

How can you stop avoiding decision-making?

You can stop avoiding it by being conscious of how important this process is; by intentionally seeking to make decisions about your life and business. Embrace the process and embrace the results it may bring. Even if a result is not the best possible, the fact that you make decisions without avoidance provides you with an advantage. The advantage is that you become proactive, alert, adaptive, ready to deal with unexpected mishaps and manage them. When you are able to do that, this means that you are the true leader of your business. You are able to handle any unexpected difficulties and activate the cognitive mechanisms to resolve them. But, wait a minute! Isn’t decision-making a part of this process as too? Well, yes it is!

Decision-making Challenges

Still this continuous process isn’t without any cost. We now know that decision-making can be very energy consuming and tiresome. Especially if it lasts a lot. This fatigue can created out of many reasons;

  1. Because decision-making is a complex procedure that demands a lot of cognitive and brain activity. Especially for people with sleeping problems, other long-term health issues, ADHD, stress disorders, decision-making is a dire and energy consuming process.
  2. Having only very restrained info that makes it difficult to proceed to the choice of the optimal option of decisions you would like to make for the specific issue.
  3. Having a huge amount of information that it takes too much time and thinking in order to assess it. This makes the decision-making a very difficult procedure, worse than having in the former condition (b).
  4. When the problem is hard to be identified. You know that you need to make a decision for e.g. to have more clients reaching your e-shop, but you don’t know yet which is the best strategy to follow. Is it that you need more ads? Or maybe that you need a better SEO to raise your organic searches? You can’t make the best decision, unless you identify exactly what’s the problem.

When the timing is bad. When you make a decision too early or too late. Maybe you know what’s wrong in your business, but there are also external factors not allowing you to have positive results out of your decision. Let’s give an example. Your e-shop provides as one of the main payment ways an altcoin. You believe that this is the future of the electronic trades. So you make a decision to incorporate it to your e-shop. But you realize that it is still a completely young market and not a sufficient group of clients uses it. Your decision is a good one, but it will pay its dividends, when this altcoin will become popular. For the moment you need to include some more popular payment ways for your e-shop.

The investing value of decision-making

While you create your career path and especially while you are building your own business, you constantly need to make decisions. Many of these decisions can be for simple matters such as what color you would put on your e-shop’s template. This type of decisions wouldn’t cost you much, in case they were proved unsuccessful or insufficient.

But there are some other decisions that can be proved to be critical for the sustainability of your business and its eventual success or fail. Such decisions could be: do I leave my day job immediately the moment I build my own business or not? Do I hire an IT and pay a full wage, though on a strict budget or I outsource to an IT company until I can afford otherwise? Is it better to seek VC (venture capitalists) support immediately or do I wait for a couple of years? Do I work with this or that affiliate? Do I pay for PPC (pay per click) ads or not and how much? Or do I count mostly on organic research or ads?

This is only just a small sample of the decisions you will need to keep making as a business owner. And if you care about your enterprise and you are keen to make it flourish, the decision-making process never seems to cease.

On the contrary, the bigger your business, the bigger the stakes, which are involved in the decisions you make. But don’t be afraid of the process. Without it, the most guaranteed outcome is that you will have no success at all. On the other hand, if you put yourself into the continuous process of making decisions, and if you do that consciously, you will have a definite gain. You will end up collecting a great amount of experience and knowledge. Most probably your decisions won’t be mistake-proof, but the mistakes you will make will add up to this acquired experience. Most successful people have put this experience into use and finally reached their business goals thanks to it. In the end it’s a process that pays dividends.

What is the status of your own decision-making about your own business? I would love it. If you want to share your experiences, your wins and challenges with me, send me an email at info@uplifepsychology.com !

Last modified: June 22, 2021

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