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.