Costs of your bad business decisions and how to avoid making them
Now here’s a real smack in the face for all of us who have made bad business decisions and it relates directly to the cost. In a wonderfully written book, A Road Less Stupid, Keith Cunningham (Cunningham, 2018) hits you square between the eyes when he introduces you to ‘Dumb Tax’.
In the simplest terms, Dumb Tax is the cost of all those bad business decisions. Hey, and I know you’ve made them. I for one have made my fair share. So, every time you made a bad decision what did it cost you? I’m sure if you take a moment to reflect you’ll see just how much you have spent on Dumb Tax.
I want you to really think about the impact of making bad decisions and what it could potentially cost you in Dumb Tax from this point. I think you may start to sit up and take notice.
What Leads To Paying Dumb Tax?
When was the last time you made a bad decision and upon reflection what was the cause? What’s more, do you actually go out and aim to make bad decisions? NO.
Yet we still do, and what’s more, I would be extremely surprised if you haven’t got your own examples and if you’re like me, you’ll have plenty to reflect on. One of the challenges here is the fact we are slow to recognise when we’ve made a bad decision.
Bad business decisions In Times of Crisis
It’s probably safe to say in the normal day-to-day activities of running our company, we can get away with bad business decisions. In fact, you’ll probably get away with having to pay the dumb tax as a result. Where it gets really challenging is in a time of crisis and where bad decisions can have a dramatic impact.
In a crisis, it is often the case that the business owner, leader or manager may find themselves under extreme pressure. It is these circumstances that can exacerbate making bad business decisions into a desperate situation. As a result, paying dumb tax in these circumstances can have sorry consequences.
So how do we go about life in business and limiting the impact of paying dumb tax? It’s a matter of being tuned in to the situation and your environment.
Understanding the situation your business is in and the environment it operates within creates a high level of awareness.
This situational awareness will make the difference between good and bad decisions. You find yourself furnished with information which will allow you to make an informed decision.
Stop Making Bad business Decisions …
Bad decisions are often made hastily with limited knowledge and understanding. So by growing your understanding in all likelihood you’ll start to make better decisions. The question here is one of developing your understanding.
Take a moment to reflect on your business right now, what more do you need to know and understand in your business in order to prevent making bad business decisions?
It may be you need to understand more about sales, marketing, logistics, operations, finances or many other areas where you have limited understanding as a business owner.
Most business owners started their businesses as the Head Technician. An Electrician started an electrical business, a Baker started a bakery, an Ophthalmologist might start an opticians and so on.
The point here is you don’t start a business necessarily as a business owner with all of the necessary knowledge. So the key in business to making sound and good decisions is acquiring the necessary knowledge you need to be a business owner.
Now That’s Worth Thinking About.
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