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  • Writer's pictureLarry McClanahan

Does Outcome Determine Whether You Made the Right Business Decision?

As entrepreneurs and small business owners, we frequently wrestle with important decisions that can make or break our business.

Maybe you’re considering launching a new service. Or selling a new product line. Or expanding your presence and market into another state or overseas.

Or maybe you’re ready now to focus on your business as CEO while hiring (or contracting) talent for technical and financial matters instead of being so hands-on with those.

If the results turn sour, does that mean you made a bad decision?

Not necessarily.

When we conduct proper due diligence on a matter, consider alternatives, and weigh the risks, it’s natural to then expect a good result. We incorporated the elements of wise decision-making and then understandably anticipate it will be successful. And thankfully, that’s often how things turn out.

But even when we do everything that we should leading up to a decision, life can still throw us a curveball, right? So we’re diligent and do the best we can but hold things loosely because there are no guarantees.

Sort of like this Decision Matrix.

Decision Matrix

Our efforts and expectations in decision-making align with Quadrant 1, but sometimes we land in Quadrant 2, through no fault of our own.

We all know people in Quadrant 3. They were anything but diligent, made stupid decisions, and somehow just got lucky. And now they think they’re freaking heroes ready to school you on how “you, too, can be a success.” Intolerable, but that’s life.

So when you find yourself in Quadrant 2, get up, dust off, and go after it again. And ignore the unworthy fools in Quadrant 3.

Feel free to contact me here if you're wrestling with key decisions in your business and could benefit from having a fellow "thinking partner" as you work through it.

The McClanahan Tax Blog is for informational purposes only. See Disclosures page.

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