5 Steps to Make Good Decisions
Intro
Making good decisions is an essential part of life.
Whether you are an entrepreneur or not, there are going to be times when you will have to make important choices that will affect you, perhaps, for the rest of your life.
In fact, if you look at the etymology (AKA the origin) of the word "decision," you'll find that it means "to cut off from."
It's almost as if every time you make an important decision, you cut yourself off from an alternative path that you could have followed.
Right off the bat, if you start looking at your choices from that perspective, you start appreciating the importance of making good decisions the first time around.
Don't get me wrong. In life, you often get second chances, and I'm the first one to say that it's never too late to turn things around.
But every so often, your life puts you on the spot, and you must take bold action.
Should I quit my job and go all in with my business?
Should I move to a bigger city to pursue my passion?
Should I end this toxic relationship and work on myself for a year?
Sure, in the examples above, you could get a second chance, but it would cost you years of your life and an immeasurable amount of energy and sacrifices.
So, here are five things you shouldn't do when making important decisions in your life.
But instead of telling you only what NOT to do, I will give you five tools you can use to counteract those biases.
Don't make decisions based on emotions.
Emotions can cloud our judgment and lead us to make poor decisions. If you find yourself feeling angry, sad, happy, or scared, take a few minutes to calm down before making any major decisions. You may be asking, "Deniero, how can I not involve my feelings when making a decision regarding my life (and possibly my love life too?)
The hard truth is that emotions change fairly quickly, so what seemed like a good decision in the morning may reveal itself to be a big mistake the following day.
Solution:
The best way to avoid making skewed decisions is to write down the pros and cons the first time around and come up with your first verdict. Then, the day after, you'll go back to the list, add or remove any pros and cons and come up with your second verdict. If your choices are consistent, congrats, you are good to go! But if your answers are not in sync with each other, you may want to wait another day or two and give it a third go.
Read this: Making Good Decisions: A foolproof system
Don't make important decisions when you're hungry
It's easy to see how you can make bad decisions when you're hungry. You might eat something unhealthy because you feel like you need to fill up on food. Or maybe you skip breakfast so you won't feel too tired during the day. Either way, when you are hungry, your mind switches from focusing on the task at hand to looking for ways to decrease the sense of discomfort. In fact, several studies have shown that hungry people are less likely to choose long-term gains over instant gratification.
Think about it! Even though the "instant gratification" objective has nothing to do with food, your brain wants to get its dopamine fix one way or another!
Solution
If you need to make an important decision, your best bet is to do it in the morning after breakfast. If you are like me, and you don't eat breakfast, then the best time may be after lunch or dinner. Regardless, refrain from making serious commitments when you are thinking about food!
Don't let other people's opinions influence your decision.
If you're trying to decide between two options, don't let others' opinions sway you. Instead, focus on what's right for you. Ask yourself questions like "What will I enjoy more?" or "Which option will help me achieve my goals?"
When it comes to important choices, you should already have enough personal data to go over, and this includes your personal values. If you don't know how to spell out your values and use them to make solid decisions, then click here and read this post.
Solution
If you feel pressured by friends or family members, set clear boundaries and let them know that you need time to think and weigh your options. If you don't want to exclude them completely, let them know that you appreciate their input and that you will take it into consideration. But when it comes to decision time, be mindful of who you are doing it for and where the final answer is coming from.
Don't assume that what worked before will work now.
You might think that because something has worked in the past, it'll continue to work in the future. However, there are so many variables at play that it's impossible to predict how things will turn out. So, instead of relying on assumptions, try asking yourself these questions: What would happen if I tried something new? How will this decision affect my life? And what will I gain by taking this path?
Don't get me wrong. Having a good understanding of how things played out in the past with other people, it's important. But you cannot rely on historical data only.
Solution
In digital advertising, we do split tests (or AB tests) to see what works and what doesn't before rolling out the final version of the ad. Sure, we use past experience and historical data as a starting point, but we don't let our past results dictate our strategy. You can use a modified version of a split test by testing your different choices, even with some thought experiments!
And this takes me to my last (but not least important) point.
Don't ignore facts or data.
If you're trying to make good decisions, you need to consider all the information you have available.. This includes both positive and negative aspects of an idea. It also means being open to changing your mind based on new evidence.
I want to issue a warning here. Taking into consideration data doesn't mean delaying your decision-making indefinitely. At a certain point, you must trust your experience and your intuition.
Solution
Some of the greatest minds of our time (from Colin Powell to Jeff Bezos) agree that you should make decisions when you have consulted about 70% of the information available. Anything less than 40% is too little, but anything more than 70% could end up slowing you down in business or in life!
Read this: How to Avoid Burnout as an Entrepreneur
Conclusion
Making good decisions is a skill, and like any skill, you need to practice it to get good at it.
If you are struggling, be honest with yourself. Have you been running away from important choices for most of your life? Have you been delegating decision-making to friends, family, and your loved ones?
If the answer is “yes,” then it’s time to take ownership of your choices.
In my book, I talk about the importance of understanding that making good choices doesn’t mean that you will love every choice you make.
More often than not, you are bound to compromise, so it’s only a matter of understanding what you feel comfortable compromising!