No matter how experienced, how visionary, and how secure you are in your role as a business owner, it’s important to recognize that anyone can make mistakes. If heads of state, and those responsible for multi-billion-dollar contracts can call things incorrectly (and not always so infrequently,) then we can too.
Rather than demoralize us, this knowledge should keep us at the top of our game, ready to focus on that which needs to be done, taking into account all variables, and making sure we never allow ourselves to become lazy or take positives for granted. This is how businesses that were once famous for their timeless appeal, such as the Rolls Royce Motoring Company, managed to innovate and integrate themselves into the present and eventually the future.
In order to take those kinds of risks and feel confident in new directions, we need to make sure that our sound business decisions are backed up by a degree of planning that helps limit the development of poor judgment. In this post, we hope to discuss how to achieve that and more:
Is It Legal, Justifiable, and Compliant?
Of course, we need to make sure that we’re acting within the necessary legal constraints when making any kind of executive decision. Making sure you have your administrative team on hand can also aid you, such as when utilizing online notarization services for the proper processing of paperwork.
Compliance consultants can also help us ensure that decisions are being made as appropriate, within the changing regulations of our industry. This is especially important within some areas, such as how British businesses are navigating the world of post-Brexit trading ties. If it’s legal, justifiable and compliant, then it’s worth thinking further:
What Returns on this Investment Can I Expect?
Any positive action or step you take may require investment and funding, and that means that you need to defer growth or rewards for some time. Something as simple as hiring a new staff member, however qualified, will require that you train them, ensure a competitive package, take the time out of your schedule to hire them in the first place, and to risk the potential of that effort just not working out.
Understanding a likely return on investment, sometimes with variable and invariable metrics to keep in mind, can help us retain our forward-thinking approach rather than being too tight-pursed or only ever going for guarantees. It will help you determine concepts like ‘acceptable risk,’ for instance, and opportunity cost.
Are There Angles I’m Not Considering?
Of course, we can always seem so sure that a given plan is going to work out, but sometimes, there may be considerations we haven’t thought of that could cause problems or even controversies. Think of the infamous Kendall Jenner advertisement for Pepsi, where the advertisement seemed to imply that provided you enjoyed that great cola beverage, civil unrest could be soothed in a matter of moments. Thinking of the public relations, market, and internal consequences of your decisions can make a big difference – having consultants or advisors on hand can make a big difference here.
What Implications Will This Have on My Firm, Its Staff and Clients?
It’s important to remember that the decisions you make have far-reaching implications on a plethora of people, including those within your firm, and those your firm services. When we raise our prices, for instance, it might be that the kind of clientele we serve are no longer truly interested in remaining as loyal as they could.
Or – perhaps investing in the future of remote working, especially after the pandemic informed us as to how important this is, will take some investment and the need to refurbish your digital systems, but as a consequence, your staff may be so much happier in their roles and be able to organize their day to day more competently. Understanding the implications in a few directions and measuring them as they happen helps you make more informed decisions as time goes by.
Is This Where the Industry Is Heading?
Consider how your decision influences or is influenced by the future market trends and forces within your industry. There’s a reason many vehicle manufacturers are starting to turn to electric – they understand the direction the wind is blowing and what kind of vehicles people will be buying as a matter of course in the next ten years.
With this advice, you’ll be able to make sound business decisions that conform to essential and wise logic – helping you prevent impromptu decisions that feel good, but ultimately don’t weigh up to proper forecasts.