Founding a startup is challenging. There are so many decisions to be made with hairs' breath precision. As if that is not enough, most of the decisions you will be making are instant; you may not have all the information you need to make the decision. Thinking by its nature does take time and requires a lot of patience as you mull through your options and test several assumptions before finally arriving at a decision. But in the fast-paced world of startups, the most successful founders are those that can “think on their feet”. If you hesitate, you may miss out on essential opportunities but if you rush in too fast, you could make dumb mistakes that will cost you BIG. So then what should you do? 

Make out time to think things through

“There is never enough time to do everything, but there is always enough time to do the most important thing”. This saying is true even for founders. You won’t always have the time you need to think unless you treat it as something important. While this may sound like common sense, very few people make time out for a brainstorming session. Running a startup can be very hectic and your time will always be tightly scheduled. Proof of this is the fact that many founders suffer burnout. Despite this, you need to carefully think through some of your options and weigh the pros and cons before making a final decision and you can’t do this on the fly. Don't get me wrong, not every decision will need such a meticulous approach. The decisions that do demand careful consideration are those that have long-term impacts on the company. Like deciding on what business model to use, what marketing strategy to apply, when to lunch, and which investor to partner with.

Don’t change your mind often

Procrastination is the thief of time and so is rushing headlong into a decision just to change your mind later on. Not only did you end up wasting time, but you also wasted resources which of course are in limited supply. Each decision you take has a ripple effect on your customer, employees, investors, and even your product. Making one or two changes to your previous decision will have no significant effect, but when it becomes habitual, then it would seem you do not know what you are doing. A lot hangs on how a founder is perceived and changing your mind frequently can create doubt, lack of confidence, and demoralize your employees, investors, and customers. 

Be decisive

Keeping your options open may seem like a good strategy…until it is not. The most obvious disadvantage of not taking a firm stand is the absence of a “North Star”. I came across this story that highlights the impact of indecision. 

“In the startup days of HubSpot, we argued for years about which target persona to pursue. Target personas go beyond the demographics and psychographics normally associated with target markets. Personas focus more on the specific needs, pain points, and buying process of your ideal prospects and customers. In HubSpot’s case, we were toggling between focusing on marketing manager types at midsize businesses and focusing on small business owners wearing multiple hats, including marketing.

I just didn’t make the call. My indecision meant the marketing and product teams had to serve multiple personas — and ended up creating middling solutions for each of them. Once we ripped off the Band-Aid and decided on one persona, the marketing and product teams could focus their efforts and craft the perfect solution. We delighted customers more, and our close and growth rates went through the roof”

Brian Halligan - Co-founder of HubSpot

The story reveals the implications of indecision. If you fail to make a decision, then you have decided to fail. By not taking a stand early on, the founder and employees wasted time and resources and experienced poor growth. But the moment they decided on which direction to set their sail, everything changed. 

Avoid shortcuts at all costs

Shortcuts are like instant gratification, they are very endearing and almost irresistible. They come with the promise of getting you to your goal as fast as possible, but it is never a clean sweep. There is a kickback from settling for shortcuts and it is not good, in the long run. But the more you indulge them, the more harmful they turn out to be. First, your team will develop a habit of always taking the shortcut (or seeking one out), instead of folding their sleeves and putting in the work needed to get the job done. Secondly, you owe a debt that must be repaid someday. It’s akin to taking a loan to run your business. At the time it might seem like the right decision, and it probably is. But the high-interest rates, the collateral you’d have to give up if things do not go as planned and other uncertainties associated with growing a business, makes this a bad decision (long term). In essence, your mantra should be, if it is worth doing, then it is worth doing right.  

Final Note !!!

Finance is the lifeblood of a business but decisions are what guide it toward its goal. Most of these decisions rest on your shoulders and as the founder, it is your responsibility to steer the business in the right direction, one right decision at a time. This article outlines four decision tenets to guide you in your journey to becoming a successful entrepreneur.