Have you ever been put into a position where you need to make a decision, and there just doesn’t seem to be any good choices? It happens all the time. Why?
Because as entrepreneurs, our abilities to make changes are extremely limited.
I can already hear the chorus of nay-sayers jumping up and down while saying, “But you’re the boss. You can do anything.”
And to an outsider who doesn’t know the job, that should be expected. But to those of us who actually practice the craft, we know how limited our abilities actually are.
There are only four things that any entrepreneur in any industry can change. Those decisions are what’s known as The Four P’s, which include…
Product – We can choose what products and services we sell as well as the levels of quality we maintain.
Price – We can set pricing structures.
Promotion – We can choose how to promote our businesses.
Place – We can choose the locations where we conduct business.
That’s it, sports fans. Nothing more is inside our purview. That’s just how limited we are.
Everything else that happens in business is outside of our control.
Let me leave you with this…
The Four P’s is what’s known as the Internals. The Externals are the things that happen in business outside of our control where our only choice is to respond.
I will be writing about the Externals in my next column.
Entire books have been written about this subject. Although I have neither the time nor the need to devote 100K words to this, it’s important for entrepreneurs to study the process of decision making.
Many make decisions too quickly. They don’t take the time to properly examine their potential choices. This can lead to bad decisions which ultimately can lead to insolvency.
Others have a bad case of “Analysis Paralysis” where they can’t make a decision in the first place. The lack of a decision can again lead to the same place.
Businesses need leadership, and leadership is all about decision making.
I’ve seen people with great skills who have great business plans fail. I’ve also seen people with bad skills and lousy business plans succeed. Why?
Many times it comes down to their ability to make a decision and then to pivot on a moment’s notice. My now sainted Mother used a story to teach me this ability when I was a little boy.
Mama said, “If you put 100 middle managers in a line and have them make a bad decision, what will be the result? 90 will try to convince you that they actually made a good decision, but only ten will be strong enough to admit that they were wrong.
Out of that ten that are left, only one will be strong enough to admit that they made a wrong choice, and will then propose a different solution to correct their mistake”
Mama always said that I needed to be that one person, and she was right. Time and time again, over the past 35 years, as I have taken my businesses through war, famine, death, pestilence, and every other nightmare imaginable, I’ve never let a bad decision stop me from obtaining my goals.
As entrepreneurs we need to learn how to fail well.
Anyone who makes a decision will be wrong a certain percentage of the time. Don’t let that bad decision overwhelm you.
Be that one person who knows how to fail well. Pick yourself up, dust yourself off, and try again.
And keep trying until you succeed.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
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