Thinking about making a business decision, but not sure whether it is the right one? It may be time to take a step back.
Trying to make decisions without researching can have negative, long-term consequences for companies. When making decisions about significant changes or purchases, these four warning signs indicate you need to slow down and do more thinking before proceeding:
4 Red flags Your Decision May Hurt Your Business
1. You have not done enough research about it.
If you are making a major business decision and have not researched much about it, you might be making the wrong choice. Did you know that when business author Peter Drucker (Theory of Entrepreneurship) was asked how to tell if a business idea is good or not, he said, “There is only one question – Can I make money out of it?” Poor decisions affect your business
If you do not ask yourself if the idea will make you money, the chances are high that your idea is not very good. Be sure to think through every possible way an idea could fail and determine ways to mitigate those risks.
2. You are hurrying the decision
Hurried decision-making leads to unnecessary mistakes and bad judgment calls later on. The more time and thought you put into a big decision like this, the better off you will be down the road.
If you are under time pressure from someone else or your own impatience, it is best to slow down and take more time to think things through carefully before pulling the trigger on anything.
3. You are deciding alone
Never decide alone, especially in business matters. Always get an advisor to help you make challenging business decisions. We all have our unique opinions— sometimes, all you need is a different perspective. If you don’t have an advisor, consult with industry experts.
4. You have decision-making fatigue
It’s easy to get stuck in a rut, making the same decisions over and over again. This is called decision fatigue. The more decisions you make throughout the day, the harder it becomes to make good quality decisions.
Nobody can make a good decision every time, but if you keep on getting bad outcomes from your choices, then you have decision-making fatigue and need to take a break.
If left unchecked, these four indicators can point to a possible poor decision in your future. To prevent an unfavorable outcome and ensure optimal success, take these warning signs seriously and apply them to your next big business decision.