Debbie Olaoye

The Art of Making Smart Business Decisions (Even Under Pressure) Every entrepreneur faces make-or-break moments—decisions that shape the future of their business. Do you expand or consolidate? Do you pivot or push forward? Do you hire fast or wait for the perfect fit? The problem? Most decisions aren’t black and white. In business, hesitation kills momentum—but rash decisions? They can sink your company just as fast. So, how do you make smart, strategic choices—especially when the pressure is on? Here’s a battle-tested approach used by some of the most successful leaders. --- Step 1: Define the Real Problem (Not Just the Symptoms) Most bad decisions start with solving the wrong problem. 🔴 Example: Your startup is struggling with cash flow. The immediate reaction? Cut costs. But is that the real issue? Or is it that your sales cycle is too long? Or that your pricing strategy is off? 🚀 Smart Move: Before acting, dig deeper. Use the 5 Whys Technique—keep asking why until you uncover the root cause. ✔ Why is cash flow tight? → Because invoices aren’t being paid fast enough. ✔ Why aren’t they being paid on time? → Because our payment terms are too generous. ✔ Why do we have those terms? → Because we’re afraid stricter terms will scare customers away. 👉 The real problem? Fear of enforcing better payment policies—not just cash flow. --- Step 2: Speed vs. Accuracy—Find the Right Balance Successful leaders know when to go fast and when to slow down. 🔹 Move fast when: ✅ The risk is low, and you can course-correct easily. ✅ Waiting longer won’t give you significantly better information. ✅ Speed itself is a competitive advantage (like launching a product before competitors). 🔹 Slow down when: ❌ The decision is irreversible (e.g., selling part of your company). ❌ The stakes are massive (e.g., taking on millions in debt). ❌ More data will actually improve the outcome. 🚀 Pro Tip: If a decision can be reversed quickly, make it fast. If it’s permanent, take your time. --- Step 3: The 40-70 Rule (Used by Jeff Bezos & Colin Powell) How much information do you actually need before making a decision? 📌 Too little, and you're guessing. 📌 Too much, and you’ll be stuck in analysis paralysis. 👉 The sweet spot? According to Colin Powell’s 40-70 Rule: 🔹 If you have less than 40% of the information, don’t decide—you’re guessing. 🔹 If you wait for more than 70%, you’re too slow—the opportunity might be gone. 💡 Lesson: Make your move when you have just enough data—not every last detail. --- Step 4: Build a “Decision-Making Framework” (So You’re Not Wingin’ It) Great leaders don’t reinvent the wheel every time they make a big decision. Instead, they use proven frameworks. Here’s a simple but powerful one: ✔ Step 1: Clarify the goal → What’s the best possible outcome? ✔ Step 2: Identify constraints → What are the risks, limits, or trade-offs? ✔ Step 3: List 3-5 options → Don’t settle for just one choice. ✔ Step 4: Pressure-test each option → What happens if it goes wrong? ✔ Step 5: Decide and execute → Pick the best imperfect option and commit. 🚀 Why it works: It forces you to think critically, reduce risk, and move with confidence—instead of second-guessing every move. --- Final Thoughts: Decisions Shape Your Future—So Make Them Wisely The difference between business success and failure often comes down to a few key decisions. Will you hesitate too long and miss your chance? Will you act impulsively and regret it later? Or will you follow a proven strategy—analyzing just enough, moving fast when needed, and trusting the process? At the end of the day, great businesses aren’t built on luck. They’re built on smart, calculated decisions—made by leaders who know when to take the leap.