Decision making red flags

Decision making red flags


Part of any business is making decisions; regarding your product, growth, staff, clients, etc. It is important to pick up on signs your business, for whatever reason, may not be the most profitable.

The following are red flags that your decision making may not be what it normally is, and you should take more time or consult with someone else before making important business decisions:

Negative self-talk
If when you think about the decision you have to make and the consequences it could result in, if your self-talk surrounding the decision gives you an off-feeling or makes you feel weary, this could be a red flag. Listen to your gut and while it is normal to have some reservations, if you have an overwhelming feeling in your gut that this is not a good decision, listen to it. Maybe the deal just needs some fine-tuning in order to make it right for you and your business.

Ill-informed
Making decisions that could affect your livelihood, your business, and potentially the financial security of your staff, without being properly informed is irresponsible. If you aren’t informed about the decision you are making and the repercussions of said decision, this could have long-lasting negative impacts. Educate yourself on all the possible outcomes’ the pros and cons of each choice and what strategy will be most beneficial for all involved.

Deceitfulness
When making a decision that depends on others, being honest is essential. Being deceitful about your intentions or the financial costs of a specific decision will see you lose face quickly, which can be very damaging to your personal and your business’ reputation.

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If you believe the matters discussed above are relevant to your business, please contact Darren Smith of our office to discuss further.


Darren is a Chartered Accountant with extensive experience, including working in the big 4 and medium sized firms before becoming a partner of a city based firm in 2000.

He has gained much experience and has extensive knowledge in providing business and taxation advice, superannuation planning, negotiation of sales and acquisitions of businesses and property development. His client base covers a wide range of industry groups.

Darren works with business owners to grow their businesses and create personal wealth within and outside of their business.


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