Generally, there are two types of decisions that all startup entrepreneurs will need to make in order to create a high-growth potential and sustainable company. Your decision-making focus is important for your business success.
Generally, there are two types of decisions that you will need to make as an entrepreneur.
First, types of decisions are strategic decisions that will have really high consequences on the future of the company, but now look unimportant for entrepreneurs. These are decisions that will shape the look and the direction where your company will take in the future.
Second types of decisions are everyday decisions related to maintaining startup operations with high consequence on the present and very low future consequence that currently looks like the most important things.
Current Reality With Startup Entrepreneur’s Decision-Making Focus
What is the current reality when it comes to decision-making focus with most of the startup entrepreneurs?
The reality with most of the entrepreneurs with decision-making focus according to my experience is presented in the following figure.
According to this figure, most of the entrepreneurs in large part put their focus on the decisions that have low consequences on the future of the startup, but currently in the eyes of these entrepreneurs they are something as most important for them that they need to decide or made as quick as possible. In such a situation, they simply start to ignore the strategic decisions because these types of decisions have low current importance according to them.
For example, they are focusing all their attention on details about product features that are really important in this startup phase, but they think that bringing staff with the right competence is not so much important in this phase even it is a strategic decision on which will depend the future of the company.
Be careful, in the startup phase there are many important things that look unimportant for many entrepreneurs.
Paradoxically, sometimes I have also seen entrepreneurs who really lose their time on decisions that aren’t something important to bring value in the future for the company and currently have really low importance for them. Why this happens, I really don’t know, but my thinking is that they simply want to do something focusing themselves on the wrong and unimportant things. This is something that I will put larger attention in my future studies in this field.
So, these startup entrepreneurs are focusing on decisions that will help them to maintain the current operations for their startup and decisions that will simply lose their time. While the focus on the maintenance is OK, it is not the only one focus that will be required from the startup entrepreneurs, additionally, for the future success of their startups, they will need to think strategically and make strategic decisions.
What Type of Decisions Will Bring Success of the Startup Process
One thing that will need to be clear when it comes about the success of the startup process is what we really mean when we talk about the success. As you know, success is defined differently by different entrepreneurs. Some of them think that the success of the startup process is surviving, others think that the success is creating the sustainable, or sellable company. Some of them think that the success is creating a great job for the founders, but also others think the success is creating the high-potential growth company.
When I talk about the success of the startup process, I think about the process which result will give high-potential growth company, with large sustainability for the future.
To succeed in this, the startup entrepreneur’s decision-making focus will need to change drastically. These changes are presented in the figure below.
- As a first, all startup entrepreneurs will need to reject all decisions that will have low future consequences for their company and at the same time, they are with low current importance for them. Why losing time, efforts and focus at something that will not help you in building high-potential growth company, with large sustainability for the future.
- Continue your focus on the decisions allowing you to maintain all current startup operations, but don’t put all your focus on them. Yes, continue your current work, but don’t make it be the one and only thing on which you are focusing all your efforts. As you can see you will have additional important things to decide.
- Change your current importance for all decisions with low current importance for you but with high future consequence for your company. This types of decisions will need to become strategic decisions for you, and something on which you will need to work.
- Ensure that all strategic decisions will have high current importance for you. You can’t allow yourself the luxury to ignore required strategic decisions when you are in the startup phase. They are important for the future of your company.