Important business decisions are not restricted to business expansion or new products – strategy, employment, security, regulation and ethics all need careful consideration. Some business owners make rash decisions as they believe that mistakes can be easily rectified. Carelessness in recruitment and supplier-selection is common, where the true cost of bad decisions is often misunderstood. Managers believe they can easily correct mistakes simply by firing/rehiring and switching suppliers. Of course, it is not always that easy. Depending on tenure and management, under-performers can be hard to move on – and costly to productivity in the meantime. With suppliers, relationships are established and systems integrated. Migrating customers can be difficult, expensive and even legally problematic, especially if you only skimmed the MSA before you signed it. Running multiple suppliers of core products presents significant operational difficulties (provisioning, billing, support) and you risk loyalty bonuses and volume discounts.
2. Analysis Paralysis
Some business owners go back and forth with inquiries while trying to make perfect decisions. They listen to new specialists and new points of view. They hold meetings and watch presentations. They hear arguments from all sides. They spend countless hours on Google then conclude that they do not have enough information to make the decision. Making no decision, or deciding to do nothing, also carries risk, often more so than making a minor misstep.
3. The absence of decision-making processes and policies
There will always be decisions to make and companies can cut down the potential for mistakes by establishing procedures for common tasks and important projects. Agree a simple process for product development and a sensible recruitment policy. Think about the governance and reputation of your business. Devolve decision making where you can but protect yourself with multiple sign-offs. Insist on at least two external bidders for contracts over a certain limit. This will give you a better chance of negotiating the best deal and limit the possibility or suggestion of corruption.
Choosing the wrong suppliers, partners and professional advisors can handicap a business and these mistakes are easily avoided just by asking the right people. Think about those in your industry that you trust and respect. Talk to them, use your network.
The team at Jola have been starting and running businesses successfully for years and we are experienced suppliers to the channel. If you are interested in working with likeminded businesses, contact Jola.
