How to Critically Think Through Your Business Decisions to Avoid Making Dumb Mistakes and Increase Your Firm’s Revenue.

Business is an intellectual exercise or sport.

The core activity of any business is THINKING. Thinking is critical to the business growth and sustainability of every firm.

In life generally and in business specifically, we’ve made decisions that we are proud of, and some also that we are not proud of. These decisions have affected us either positively or negatively financially, socially and in every other aspect of our lives.

Thinking leads to decisions and choices. The quality of decisions/choices you make is determined by the quality of your thinking.

In our choices and decisions, our goal is always a positive outcome. We strive to mitigate or eliminate as much as possible, the negative.

Statistically, studies have shown that to fix a bad business decision or deal, it will take three (3) good deals. The effects of bad business decisions are weightier than the effects of a good decision.

I don’t think there is anyone in his or her right mind whoever woke up one day and said to himself or herself,  “Today is the day I’ve been waiting for to make bad business decisions that are going to affect me the rest of my life.”

“Today I will do some things that will have major terrible disadvantages for decades to come.”

“Today is the day I will not use my best ideas or even my second-best ideas.”

“Today is the day I will only use my third-best ideas!”

Nobody does that.

So how do bad business decisions come about? 

Here is what Keith J. Cunningham says in his book, ‘The Road Less Stupid’ said: “All my bad decisions started out as a good idea and all those “good” ideas were emotionally justifiable at the time.”

When you take a critical look at what disrupts our dreams or goals; the primary reason for dumb/bad/wrong business decisions is our EXCESSIVE OPTIMISM and EMOTIONAL BELIEF for SUCCESS and in SECRETS FORMULAS and so on. We gravitate toward impulsive, glandular decisions instead of thoughtful, rational ones.

Emotions and intellect work opposite each other. When emotions go up, intellect goes down. Optimism is a deadly emotion in the business world. Don’t be emotionally attached to business ideas. Rather use your intellect to critically think about it first.

Impulsive, glandular decisions are deceptive. Warren Buffett said it best: “Optimism is the enemy of the rational investor.”

The key to business growth and sustainability is to avoid making bad business decisions and doing stupid things.  You don’t need to do more smart things all the time. You just need to avoid making bad business decisions and do fewer dumb things by critically think through your decisions.

Think through the 1st, 2nd, 3rd and 4th order consequences [or effects] of your decisions; whether they are acceptable to you or not if the decision or idea should fail.  After weighing it, if you can cope with it, go ahead, if you can’t cope, avoid it.

Dump mistakes in business more often than not happen because, critically thinking about what could go wrong and doing the work to mitigate those risks before taking action is abandoned in favour of comfort zones, the path of least resistance and instant gratification.

Again, think and weigh the consequences of decisions and ideas, if they are acceptable in case of failure before jumping into it or executing it.

Ready for a shocker? Your current financial condition represents your very best “thinking.” Mine as well.

A not buoyant financial state is as a result of a not buoyant financial thinking. If you change your thinking [and decisions], your financial state will change as well.

A famous quote I have heard is: If you are going to think, you might as well think BIG.”

Napoleon Hill’s international bestselling book, considered to be the bible for business success, is titled, “Think and Grow Rich.”

Yes. Thinking alone doesn’t bring the results you desire but it is a crucial first step towards it.

Remember to always:

• Take time to think thoroughly, before you make a business [or any other] decision.
• Think thoroughly, think deeply, and think deeper. The more you think about the challenge, the opportunity, the more you get a clearer picture.
• Your current financial condition represents your very best “thinking.”
• If you are going to think, you might as well think BIG. The same level of activities you need to achieve a small thing, is also what it takes to achieve BIG things. Thinking small does not serve anybody. Think Big.

Applying these lessons will help you run your firm more effectively, generate more income, and dramatically increase the chances of sustaining it if you adopt the principles discussed.

Do you need help or more clarity on the principles discussed here? send us an email here:support@legalpediaonline.com

 

To Your Success

 

Luke Ikekpolor

 

P.S. The principles are deduced from Keith J. Cunningham’s book ‘The Road Less Stupid’