Are you currently running a small business? Or maybe you are still on the verge of building your own startup? No matter your current situation, it pays that you learn how to be a smart decision-maker. This is to ensure you make enough money to keep the business running and continuously improve your bottom line while reducing and mitigating business risks.
Every decision you make can have an impact on your business. If you are not careful, you may end up having to deal with consequences that will not only make you lose some revenue. You can even put the business in jeopardy just because of seemingly innocent mistakes. By knowing your decision-making tendencies, you can work on improving your skills when it comes to making business-related decisions. The following are two types of behavior common to business owners that often do more harm than good:
Focusing on short-term goals
Every successful business owner has their own short-term and long-term goals. Some tend to focus their energy on tackling short-term goals and on decisions concerning the issues they are currently facing. Stressing too much on the current issues and forgetting all your other plans can stop you from boosting your bottom line. Trying to do everything on your own also puts your staff in a tricky situation and makes them feel like they are in no position to help.
Allow your subordinates to tackle the issue at hand and trust in their potential. This is the very reason you hired them in the first place. Planning ahead is a good way to ensure you already have a strategy in mind in case you need to put out a fire in a certain department. Devote your time in planning ahead and seeing the bigger picture. Don’t just focus on the short-term problems as there are more business matters worth occupying your attention.
Being passively indecisive
Most entrepreneurs would rather take charge and do all the decision-making themselves. Some will happily step back and gather votes in a meeting just to come up with a decision from the majority. Even simple matters concerning equipment purchase and even repairs for Zebra gadgets, for example, are consulted to their subordinates. While this gives your team a sense of democracy, one can’t deny that it has its drawbacks.
For one, you can lose your sense of leadership. Allowing others to constantly decide for you won’t help you develop the necessary skills to create smart decisions. Such behavior often leads to procrastination since you are constantly waiting for others to decide before making a move. Also, the vote of the majority does not mean this is already the best solution. You won’t also want your team to question your capability as a leader due to your leadership style.
The kind of business leader you are and your style of making decisions can have a direct impact on your business. Not only will it affect your business finances; it can also influence how others, especially your team, look at you as their leader. It is important to work on your strengths and improve your weaknesses to make sure that you make the right decisions necessary to help your business grow and succeed.