Creating your business enterprise from the scratch can make you get attached to it on a personal level. This is completely justified as your business is your baby. You put your heart and soul to shape it up and make it substantial. Owing to these factors you might not be able to make informed decisions which are free from any personal bias.
However, there comes a time when you are stranded in a tricky business situation and you have to make a decision. At this time, separating business from emotions becomes crucial. The situation may be firing a close relative due to their underperformance. Or it could be the shutting down of a product because of its inefficiency. Either way, you need to understand the impact of an emotional hindrance in business decisions. So to help you in this state of dilemma, we have a list of ways you can separate emotions from business decisions.
1. Quantitative Aspects:
When the emotions cloud your judgments, simply resort to the metrics. Putting concrete figures and numerals into perspective can help you form informed decisions. For this, you need to maintain a database of all the performing aspects of your business. Keeping a record on every move they take can prove beneficial in taking mindful steps in your business. This can help you ascertain where the productivity lies and where it doesn’t. Consulting the analytics can give you a rigid business perspective to help you make a reliable decision.
2. Meticulously Research on Your Decision:
Before undertaking any decision one must conduct a thorough research. However, when it comes to deciding for your own business this becomes all the more imperative. Researching can help you have a fresh perspective premised upon evidences and observations. You can refer to various management books or search the internet to lay down a comprehensive research.
3. Have a Different Perspective to the Situation:
You need to step outside the situation and view it from a third-person viewpoint. If you’re not able to do that, then, having a trusted outsider or a mentor can do this for you. Momentarily detaching yourself from the business is the key here. Have a rational perspective and approach the situation as if you’re a layman. Creating a fresh and detached perspective will help you in seeing the bigger picture.
4. Refer to the Past Records:
Looking back into the previous decisions you undertook will definitely help you mapping your next decision. Take a look at all your previous decisions, ones where you failed to deliver and ones where you succeeded. These will help you ascertain your decision-making pattern. It will also reflect on what works for your company and what doesn’t. You can use these past instances to derive a mindful decision.
5. Do Not Exhaust Yourself:
When you are held in a position of tough decision-making, you often lead to overstress and eventual burnout. Avoid arriving at such a health haphazard. Sometimes the best way to decide something is to sleep on it. Having a well-rested night will do most of the work for you. Your mind can process all the information more efficiently and much faster with an unperturbed mind. When the next day you’re feeling more present, then you can take these risky business decisions. There is no harm in stalling them for the right time.
6. Take a momentary Break:
Decisions made on a heavily emotional state of mind are more often than not, irrational. So when you are faced with a heated situation filled with emotions, you should excuse yourself. There are hardly a few decisions that need attention right away. Usually, decisions can be taken when you are in a more stable frame of mind. Taking a momentary breather will help you gain a fresher standpoint and outlook on the situation. Your decision will naturally be more sensible.
7. Taper Your Options Down:
The more options you have the harder the process of decision-making becomes. This may seem contrary to common belief. However, when it comes to taking a complex business decision, it is better that you limit your options. It is just like going to a mall for shopping. The more clothing options you see, the harder it becomes for you to pick one, as opposed to having to pick an outfit amongst say 5 options. The same logic applies here. Before settling down to seal the deal with one option, try narrowing the list down. This will not only make your job smooth but it will save your time.
8. Consult the Majority:
Personal biases while taking business decisions can prove to be a major hindrance, which is why it is highly advisable that you consult the masses. Asking for a second opinion when taking a major business decision that involves big risks can come handy. You will be surprised by the number of refreshing ideas and perspectives you will receive. So when in doubt, ask the majority.
9. Do Not Rely on your Gut:
Rule of thumb or intuition should not be your only premise upon which you base your decisions. Having instincts is necessary for identifying threats and opportunities. However, you should jot down all the facts and figures before creating a business evaluation. Creating a list of pros and cons, assessing your progress from your decision pattern, referring to the metrics, considering all the external factors etc. are a few examples of how you should approach a business situation.
The level of attachment you attain with your business is because of the level of dedication you place and the number of hours you spend in perfecting every little detail. However, having emotions impede your judgment can get in the way of your profitability and success. In order to make smart decisions practice these tips and you will surely witness a difference in your decision-making style. Do not get carried away by emotions and stay as rational as you can. One major tip that will always come handy is to try to avoid involving close relations in your business dealings. We hope these tips will help you.