Startups · Entrepreneurship

What ways will help me determine the risks and benefits of an important business decision?

Ryan Thompson Commercial Real Estate Agent at Stidham Commercial

October 2nd, 2016

There are instances in the development of your business where you will arrive at a crossroads. If you decide to tread a wrong path, it can cause negative effects on your business. For that reason I would love to know some insights and learn from your own experience. Much appreciate your guidance.

Bob Graham Engineering and Software

October 2nd, 2016

I make a list of:
-All the options
-A list of pros and cons of each decision
-A list of assets I can offer each decision
-A list of liabilities that come with each decision

There is usually a clear winner. But sometimes there isn't.

In those situations you trust your gut. Yes its true. You cannot always think your way out of a problem. Sometimes you need to make a hard decision. I read that in the army, when faced with a difficult decision where the facts don't lean to either side, the job of the leader is to make a decision, based on what they think. 

The key sometimes is just to make a choice, make one fast and then stick to it. Take ownership of the outcome regardless of what happens. Make it, stick to it and live with it basically.

John Barley Insurance Broker | Risk Management Expert | Organisational Health Coach

October 2nd, 2016

It is very much dependent upon the known choices that one has and balanced against the unknown choices that could be out there . To know ones choices there needs to be some important questions asked. This does take time but it lowers the risk of making the wrong choice. What sort of questions? . These are questions that relate to what you understand of your business in your environment . There are two type of environment . Internal and external . Know your internal environment first because then you will know how it relates to the external environment.    

John Barley Insurance Broker | Risk Management Expert | Organisational Health Coach

October 2nd, 2016

I kind of agree with Bob . However a real great book (I think) to give a leader an idea of understanding risk is to read "Failure is not an Option" The lessons learned by NASA in sending man to the moon and back is thought provoking. Fundamentally you need to understand what's going on how , when and where and a person needs to understand the workings and mechanisms within the organisation so that they can be ahead of the game and be prepared and know what to do when symptoms of damage occur . Its understanding the patterns. Is this hard? . No . Its a journey and it takes time and joint effort of all the people in the organisation. Someone in the organisation will have the answers to your questions.      

Sunil Vadehra Director, VisAmCo Technologies Pvt. Ltd.

October 3rd, 2016

Agree with Bob to a great extent. Biggest risks emanate from assumptions going wrong. Analyse all assumption on their correctness, evaluate pros & cons of each of assumption going wrong, think of mitigation steps of each risk.