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Learn to Overcome Fear Based Decisions

Decisions…decisions…decisions…

We make them every day. According to a few studies, we make up to 35,000 daily decisions.

We will inevitably get some of those decisions wrong.

Too many wrong decisions and our business starts to go sideways.

Unfortunately, avoiding decisions is not an option. Making decisions from a position of fear is also a recipe for failure and setbacks.

Why do some business owners make business decisions from a position of fear?

First, you must understand what fear-based decision-making is –

 In business, fear is an emotional response to perceived threats or uncertainties. It can significantly impact the decision-making process, often leading to choices more about avoiding perceived dangers than seizing opportunities. Fear-driven decisions stem from this emotional response, typically as overly cautious or reactionary actions. These decisions are not based on strategic analysis or long-term planning but on an immediate desire to mitigate perceived risks.

Common triggers of fear in business include:

• Financial instability, where the threat of losing revenue or facing insolvency looms large.

•  Intense competition can create pressure to react swiftly and defensively.

• Sudden market changes introduce uncertainty and challenge the status quo.

Understanding these triggers is crucial for recognizing when fear influences decision-making, enabling business leaders to address and mitigate its impact. Understanding and seeing fear as a natural part of business is vital if entrepreneurs want to last long term. 

What are the signs of fear based decision making? Here are a few of the signs-

How do you do this? Here are ten steps to help you embrace the fear and make it an asset.

1. Understand the Validity of Fear—We all experience fear, so the issue is how we respond. Some get paralyzed, while others face it with speed and urgency. Understand that fear is an emotion triggered by our thoughts. It is vital to validate whether our thoughts are grounded or not. Many times, we spiral or let our minds run in doomsday scenarios. Focus on the facts and solutions.

2. Break Down Each Decision - Don't give yourself infinite decision-making options—that leads to paralysis. Narrow things down and realize that most people succeeded not despite their challenges but precisely because of them. Difficulties force you to be creative and strategic and to make better-considered choices.

3. Complete a Risk Analysis—Do a risk analysis on the difficult decision you have to make. Consider the best or worst things that can happen and review your list. This will help tremendously clarify your decision and give you the confidence to move forward.

4. Make Intentional Decisions—No decision is a decision, but avoiding a decision only compounds the problem. It is essential to understand there is no wrong decision. Yes, decisions sometimes do not work out how we intend them to. Decide with intent, monitor the decision, and adjust accordingly if the first decision does not yield the required results.

5. Know Your Desired Outcome—Every decision should Have a clearly and specifically articulated desired outcome and a reason why. Follow up with the best strategy and tactics for achieving that outcome and who will perform them. Also, a fallback plan should be developed if the first decision is not possible, along with the strategy and tactics for achieving it. 

6. Get Educated on As Many Aspects of the Decision as You Can - We don't get to choose our hardships and difficult decisions, but we do get to decide how we handle them. Conquer your fear by educating yourself, collecting the facts, and trusting your gut to advance. The wisdom from any challenge often repays itself over time, allowing you to mine even the greatest-seeming obstacles for better outcomes in business and life.

7. Maintain an Objective Outlook—Fear is subjective, so be objective. Start with a pros and cons list or a costs/benefits analysis to assess all aspects of the decision. Putting things down on paper objectively can make the decision-making process more manageable, with the facts speaking for themselves. You may also see that your initial fear may not be as bad as initially anticipated.

8. Don’t Let Fear Govern Everything - For business owners, life is full of challenges, and one must learn to have an equal balance. Fear is a cautionary measure that I appreciate, but I do not allow it to govern business decisions. Balance is essential.

9. Learn to Embrace the Fear - Change creates uncertainty, chaos, and hard work. Healthy companies embrace change, evolve, and focus on continued growth. The most difficult decisions are often the most important for success. Recognize and embrace the fear that comes from making decisions. Avoiding the feeling tends only to delay the inevitable and make change down the road even harder.

10. Accept That You Will Never Have 100% of the Facts—Wouldn’t life be great if we could decide knowing we had 100% of the facts necessary to make an informed decision? That would certainly remove the fear of choosing. Unfortunately, that is not a realistic expectation. Most of the time, we must make decisions with 50% to 75% of the needed facts. The difference between 100% certainty and the 50% to 75% range requires business owners to use experience, input, and intuition to finalize decisions. That can be a terrifying proposition, especially for new business owners with everything on the line. Trust me when I tell you that you will make mistakes, you will learn, and it will get easier over time.

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