As entrepreneurs, every day presents new challenges, opportunities, and decisions. From launching a new product to choosing whether to scale up your business, or partner with your ambitious friend, decisions are at the core of entrepreneurship. Yet, most struggle with making decisions quickly and effectively, especially when the stakes are high. But here’s the truth: decision-making is a skill that can be mastered with the right tools and mindset. In this article, I break down a few key strategies that can help you become a more decisive individual, allowing you to move forward with confidence and clarity.
1. The Power of Simplicity
One of the greatest barriers to decision-making is overcomplicating the process. It’s easy to get lost in countless options, pros, cons, and what-ifs. This is where Occam’s Razor comes in—a principle that suggests the simplest solution is often the best.
Occam’s razor is the principle that, all else being equal, simpler explanations should be preferred over more complex ones. This principle is thought to play a role in human perception and decision-making, but the nature of our presumed preference for simplicity is not understood
You should: The next time you’re faced with a decision, ask yourself: What is the simplest solution? Focus on reducing complexity. Filter out unnecessary details and base your decision on the core elements of the situation.
2. The 70% Rule
The Amazon Founder, Jeff Bezos, popularised the 70% Rule, which argues that you should make decisions once you have roughly 70% of the information. Waiting for more clarity can cause delays, and by the time you get all the information, you’ve likely missed an opportunity.
You should: When making a decision, don’t wait until you have 100% certainty. Make your choice when you feel about 70% confident. Speed is essential in entrepreneurship, and you can always pivot later if necessary.
Leverage the Eisenhower Matrix
The Eisenhower Matrix is a powerful tool for prioritisation. It divides tasks and decisions into four quadrants:
By categorising decisions into these quadrants, you can focus on what truly matters while eliminating unnecessary stress.
3. The Power of Reversibility
Not every decision is final. Recognising when a decision is reversible versus irreversible can alleviate the pressure. Many decisions in business can be undone or adjusted with minimal cost or effort. Knowing this can help you take action faster and with less anxiety.
You should: Ask yourself Is this decision reversible or irreversible? If reversible, go ahead and make the call without hesitation, knowing you can adapt if needed. If irreversible, give it the extra thought it deserves, but don’t get stuck in analysis paralysis.
4. Mental Models
Mental models are frameworks or ways of thinking that help simplify complex problems. Entrepreneurs often use models like First Principles Thinking (breaking down problems to their core components), Pareto Principle (focusing on the 20% of work that yields 80% of results), and Inversion (thinking about what you want to avoid to guide what you should do).
You should: When faced with a tough decision, choose a mental model to guide your thinking. For example, if you’re deciding on a product to launch, use First Principles Thinking by asking: What is the essential problem this product is solving? This helps you cut through noise and focus on the core issue.
5. Trust Your Intuition
While data and frameworks are crucial, your intuition also plays a powerful role in decision-making. This is particularly true in entrepreneurship, where many decisions involve uncertainty and risk. Over time, as you accumulate experience, you’ll develop a better gut feel for what decisions to make.
You should: Practice combining data with intuition. After analysing a situation logically, check in with your gut: How do I feel about this decision? If your intuition is signalling something important, give it consideration alongside the facts.
Second Rule for Minor Decisions
For smaller, everyday decisions, speed is key. Overthinking can drain your mental energy and lead to decision fatigue. The 5-Second Rule, popularised by Mel Robbins, is a quick technique where you count down from 5 and take action on small decisions immediately.
You should: For minor decisions (like responding to an email, making a quick phone call, or deciding on your daily to-do list), use the 5-second rule. Don’t give yourself the luxury of overthinking. Count 5-4-3-2-1 and act.
Conclusion
The only thing that sets apart the 1% from the rest, is how decisions are made. As entrepreneurs, decisions are inevitable. But the ability to make clear, confident choices can set you apart and accelerate your growth. By simplifying the decision-making process, embracing frameworks like the Eisenhower Matrix and mental models, and trusting your intuition, you’ll be able to navigate the uncertainty of entrepreneurship with greater ease.
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