Small decisions could have huge ramifications.
Everyone has heard of the so-called ‘butterfly effect’. What do you mean you haven’t? Of course you have. Ever seen Jurassic Park? Then you’ve heard of it, courtesy of Jeff Goldblum’s monologue in that film about chaos theory and the law of cause-and-effect.
What it basically boils down to is the allegorical theory of a butterfly flapping its wings in Japan and thus causing a tornado in Texas. Obviously not a factual event but rather an example of conveying the idiom of a relatively small, seemingly inconsequential incidence having a much larger repercussion by direct consequence thereof.
This maxim holds especially true in the world of business where even the smallest decision can have considerable consequences, both good and bad. A seemingly innocuous decision you may make now may turn out to be highly important later.
As an entrepreneur running their own business, ultimately every major decision will rest on you, whether you like it or not. Every directive you give, every task you sign off on, every project and client you take on, every employee you hire, they’re all links in a chain leading to a resultant destination. Whether that destination is a positive or negative depends on the validity of the decisions you make in a heartbeat moment.
To mitigate the butterfly effect and turn it in your favor, we have compiled some tips to help you avoid negative consequences down the road.
1. Analyze vs Instinct
When making a decision, you need to weigh up two factors; what is your gut telling you and what do the data analytics convey? Relying solely on one over the other tends to lead to overreliance and sometimes a skewed viewpoint. Take both into consideration, weigh them up, and make a decision that factors in both as and where needed.
2. Teambuilding
In business, assembling an effective team can mean the difference between success and failure so you want to be sure you get it right. What you should look for are people with experience alongside less experienced but eager, innovative newcomers with fresh eyes and ideas. Finding the balance to that is the tricky part but ultimately, you need people who aren’t afraid to tell you what you need to hear, not solely what you want to hear, for that way lies ruin.
3. Think Ahead
Short-term thinking has led many companies to a fateful and ultimately disastrous business decision they later regretted. The publishing company that turned down Harry Potter, the record label that declined to sign The Beatles, Blockbuster declining to buy Netflix when offered it for dirt cheap. These decisions have went down in infamy for good reason. Always look at trends in the market, not just in the current and next financial quarter but further down the road. Be ahead of the curve and you’ll never be behind.
4. Stretch Yourself
Complacency is the enemy of competitiveness. Once you settle into a routine, get entrenched in the ‘way things are’, and ultimately become sclerotic, that’s when you make bad decisions that will cost you dearly. Taking the path of least resistance is never a wise decision in the commercial marketplace, but at the same time, reckless adventurism is also equally destructive. Strike a balance between continually striving for excellence, outdoing yourself, swinging for the fences and aiming at the stars, but equally so, be realistic, grounded, practical, and prudent.
