Why Quick decisions are essential to progress of your venture?

by Ashvini on April 17, 2012 · 7 comments

in Entrepreneurship

Getting stuck while making decisions that have an element of uncertainty is quite common. We can see business leaders, politicians and bureaucrats stuck while making decisions that are needed for progress. They take forever to make decisions because most of the times democratic decision making involves consensus which takes enormous amount of time. It involves crossing every t and dotting every i before even taking a small step.

Quick decision making

As much as this is suitable to the parts of the fraternity mentioned about, being stuck while making a decision may be costly for the entrepreneur. In the life of an entrepreneurial venture, the entrepreneur will take many decisions. These decisions, be it opening up an office in a locality or buying a server, need thorough research and guidance. Often there is not much time to conduct research before making every decision.

That means the entrepreneur needs to take decisions based on limited amount of information or research that is available. Sometimes these decisions turn out to be favourable , sometimes not so much. But that does not matter in the long run. There will be wastage,redundancies and costs which will appear as wrong when looked back. But then it is the part of the game. If you then had so much information, you would have taken the best decision. However, at that point you had no idea whether your decisions will make any sense in future.

For example, if you purchased two internet connections when you could do with one, is it a bad decision? Probably not, because you are trying to address a risk, that at a critical time your single internet connection may breakdown, causing your business to suffer. There are obvious costs to the other connection but then you have calculated mentally that it is worth the trouble.

Since you took decision you were able to move further and complete more tasks. The point is simple, in your venture, you will have to take hundreds of decisions and often it is not easy to plan and research for everything. This is not a substitute of planning but to be aware that sometimes things may slip and you will have to take decisions later.

Taking fast decisions even when you have limited information is the key to move ahead fast and concentrate on more important tasks at hand.

Image: Sira Anamwong / FreeDigitalPhotos.net

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{ 6 comments }

Gerald Martin April 30, 2012 at 3:27 pm

I’d like to compare quick decision making skills in entrepreneurship to strategically playing fighting games. Fighting games have a time limit as to your tasks in your business have a deadline. In fighting games, you’ll need to think of ways to win as quick as possible, or you’ll pretty much be stuck in the corner all day, getting pushed around. In your business, once you get yourself stuck, you’re going to waste a lot of your resources.

= Gerald Martin, SEO Reseller =

Ashvini Kumar Saxena May 2, 2012 at 2:48 pm

Hey Gerald,

That is great analogy. Yes sometimes time is so much short that we can only take decisions. Sometimes they might turn out be wrong but it is still better than taking no decision and stalling the project completely.
Thanks for your comment :)

Richard April 24, 2012 at 9:02 pm

This is a really big key to business. Too often falling victim to “paralysis by analysis” leads to absolutely nothing getting done. Taking action and moving on is key. Even though sometimes you may not make the best decision, it’s often said that “sometimes to take 2 steps forward, you must first take 1 step back.”

Ashvini Kumar Saxena April 26, 2012 at 4:07 pm

Totally agree with you Richard. Too much analysis wastes a lot of time. In absence of data it may not be possible to sit and wait while whole project is stalled. Better take decisions :). Paralysis by Analysis is superb term . Thanks for commenting.

Bryce Christiansen April 20, 2012 at 5:03 am

That’s a great point.

Today I probably followed up on at least 3 projects that had fallen to the side because no decisions were made in the last few weeks.

This is definitely a useful skill, especially for project managers.

I’m bad at this myself, but hopefully can repent very soon.

Bryce

Ashvini Kumar Saxena April 26, 2012 at 4:11 pm

Hey Bryce,

Sorry for the late reply. I was non vacation. I believe that waiting for the decision till we have all the data is not useful. Most of the times, I have no data and often needs to rely on what I know.
I hope you are able to move ahead on your projects .
Thanks for your comment bro :). See you soon at your blog.

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