Unless you have a magic crystal ball, making fast decisions when you’re a brand-new entrepreneur can be hard. Small business owners are often faced with major forks in the road. These business owners are usually highly aware of the ramifications of making a wrong decision. The problem often is they don’t have the experience with the particular decision area to know which way to turn. Now imagine that you’re a new business owner facing the demand for dozens of these quick decisions each week. Decision fatigue is real, so how can you make a fast decision and not paralyze or overthink?
Why Faster Decisions Matter to Your Business
Some people just make decisions slowly. They collate information gradually and ruminate carefully before finally making their ruling. But most small business owners simply don’t have that kind of time. This is especially true when the markets are so volatile as they’ve been lately; time is money so decision paralysis means you could miss an opportunity to profit.
Here are a few reasons why faster decisions can add real value to your business.
Time is Money
It’s critical to recognize the point where you have enough information to make a decision and then move forward. Interestingly, this issue isn’t just a small business problem. A McKinsey study showed managers at Fortune 500 companies say their firms waste more than 500,000 days a year on ineffective decision-making processes. McKinsey estimates that these inefficiencies cost these companies about $250 million annually. The study suggested several reasons why decision-making is impaired in these companies:
- Lack of real and effective debate
- Convoluted processes
- Overreliance on consensus
- Unclear organizational roles
- Information overload
- Cultures that lack engagement and empowerment
- Death by committee
But the average small business should lack many of these barriers, simply because they don’t have the bureaucracy found in enterprise organizations. When you’re a small business owner, the buck truly starts and stops with you. That should free you up to make the kinds of decisions you need. Often, though, it’s hard to know the right way to turn. Ask yourself is there a mentor you can turn to or fast research that can help you move forward?
Competitors Are Standing By
If you’re stuck already in your decision-making process, it doesn’t bode well for your business as you begin to grow and add staff. That’s why it’s important to empower your frontline workers to make the kind of decisions they need to on the fly. If you start to build your business by micromanaging your workforce, your competitors will not only edge you out of opportunities that required speed to market, but they may also steal your best workers because no one likes micromanagement.
There was a Stanford study a few years ago that told the story of Gavilan Computer, a company that had $31 million in venture capitalist funding and ended up bankrupt. The study stated the firm, “experienced delays and indecision that ultimately cost the firm its early technical and market advantages.”
Slow decision making can handicap a business. Companies like Exelare are in the decision-support business. Our state-of-the-art applicant tracking system can help you make faster decisions about your hiring processes by automating workflows that slow your business down. Here’s a fast decision that will benefit your business: Call Exelare for a demo today.