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Why small business owners make bad business decisions

March 21, 2018 7:46 am

Your business success is a product of the decisions you make. If you are consistently making bad ones, then your level of success will obviously fall. The issue small business owners have is making good choices on a consistent basis. Each decision you make should be well-thought. Careful calculations should be performed to ensure risks aren’t too high.

The following are the 3 reasons.

  1. Falling for bait and switches

Have you ever gone to a car dealership and were offered a price that was lowered by a few thousand after you attempted to leave? This is known as the anchoring effect. Most salespeople use this to make buyers believe they are getting a steal, when in reality, the final price of both quotes are the same after tax and fees. Researching a deal before you accept it is essential if you want to avoid being bargained by those you do business with.

  1. Making fast judgements

This is known as the central attribution error. Everything that interests you as a business owner shouldn’t mean is a good idea. Everything that comes into your mind shouldn’t be regarded as the best idea to be put into practice. For instance, if another driver rear-ends your car, the first assumption would be they were negligent or are a bad driver, rather than considering it was due to a mechanical failure. Thinking this way can land you in trouble, so desist from jumping to conclusions. Always use data to back up any judgments you assume.

Small business consultants and established business people are experts at making slow judgments. They know that things aren’t always as they appear to be, so they take time to do the analysis correct before making any conclusions.

  1. Repeating your existing beliefs

A lot of people are guilty of this – they are consistently trying to reaffirm the beliefs they already have. So they will use studies and data that is a bit biased. Confirmation biases can be avoided by using multiple sources to back up your beliefs. For example, if you believe that young adults are the best market for your product, don’t rely solely on studies that confirm this. Research other demographics as well – you just may learn other age groups would be more suitable.

Over all good listening skills, teamwork and hard work will make your dreams come true. Adapting, learning, listening and research are key in the modern world’s dynamic markets.

Author: Gesture Chidhanguro

Why small business owners make bad business decisions Reviewed by on . Your business success is a product of the decisions you make. If you are consistently making bad ones, then your level of success will obviously fall. The issue Your business success is a product of the decisions you make. If you are consistently making bad ones, then your level of success will obviously fall. The issue Rating: 0
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