Business is all about making decisions, and adapting to change. As an entrepreneur there’ll be many occasions when a change presents itself, but which option should you take. Choosing the right option can provide a fast track to success, but sometimes things aren’t simply black or white. An article in Entrepreneur magazine looks at the impact of trade offs in business decision making. Here, Zip Berkeley review the article, and consider the importance of making bold decisions.
“There are decisions to be made in business every day, and it’s important to give the big decisions the attention that they deserve”, said Kai Petrich , director of Zip Berkeley. “Consider the impact that each choice could have on your business, and don’t let trade offs later on in the process hamper the benefits that your decision could bring.”
The article begins by taking a hypothetical situation. A fisher is at the end of a day fishing by a lake. They receive a message saying that fish are biting at the other side of the lake, but there’s only enough fuel in the boot to make the trip in one direction. Going to the other side of the lake will bring the benefits of an increased haul, but means that the fisher will have to row back. That’s the trade off. Decisions in business can often involve similar trade offs, where some factor has to be compromised or sacrificed to bring the chance of greater success.
Entrepreneurs should always be aware of trade offs in the decisions that they make. It’s easy to become too focused on one decision, and on the results that you’ve determined the decision will bring. In this way, they miss the sacrifices that will have to be made because of the trade offs that are inevitably involved. Spotting the trade offs early can help business owners make the most of all the challenges and opportunities that they face.
“Trade offs are a common element in every decision, but they may not be immediately obvious”, said Kai Petrich . “When making a decision, consider the impact that it could have on other aspects of your operations. It’s also important for entrepreneurs to be bold, rather than risk averse, and be prepared to go for the option that can bring the biggest rewards.”