Why decision fatigue is so important for entrepreneurs
Everyone likes to talk and write about tactics, how to's, and success stories in entrepreneurship. But today, I want to tackle something a bit more ephemeral, yet so essential.
Decision fatigue.
In this article, I'm going to dive into the importance of decision fatigue, how I do my best to manage this, and the consequences of failing at this.
Entrepreneurship is an open path
While many books lead us to think that we can achieve success in business if we just learn this or that, that is rarely the case. If there were any clearer path to success, we would all be there by now.
Instead, we are faced with lots of information.
Some of it is relevant to us, some of it is not.
And as an entrepreneur, no one is telling you, "This is how you succeed." It's not like a job with a boss who gives you clear success criteria. Instead, you have to set the criteria, and figure out the path to get there.
This means you have a wide-open path.
You can go wherever you want, do whatever you want, and however you want... to an extent.
Because everything you want to do is also intersecting with the market which will decide if it bears or rejects your ideas.
But the key point here is that there is no path. You have to sculpt it for yourself.
You will make countless decisions
The open path of entrepreneurship means that you will constantly be making decisions, both consciously and subsconsciously.
How do I spend my time?
What will our service be?
How do we evolve with the market?
How do we ensure profitability?
Do I need to lay off this person?
Will I be able to make payroll?
How much can I pay myself without putting the business at risk?
What skills should I be building or studying?
Do I make this investment or not?
What direction do I want to take this business?
The questions and decisions are constant and endless. And the hard part is there is no clear right or wrong answer. You won't make a decision and immediately be given a right or wrong answer.
Often, many decisions will never give you concrete feedback, and many won't show the consequences for months or years.
Decision fatigue is real
There is a concept in psychology known as decision fatigue.
Simply put, the more decisions you make, the worse decisions you make.
And the more exhausted you are, the more likely you are to make bad decisions.
This concept is extremely relevant for entrepreneurs because the reality is that you will get fatigued, and it will happen often. And when you get fatigued, that is when "your head isn't on straight."
For example, I was talking to a friend the other day who had been through what he described as a "shitshow of a week." I hadn't seen him this worked up in a long time and it was clear that the pressures of business had gotten to him.
He was in the midst of a ton of issues and about to make some big decisions.
My advice was simple:
"I see your state, and I've been there. All I can tell you is- don't make any important decisions while you are in this state. That is a recipe for disaster. Work through this, get your head straight, and delay any key decisions."
Don't make decisions in a fatigued state
Early in my entrepreneurial career, I didn't realize the impacts of decision fatigue. As a result, when things got hard, I kept making big decisions, and often those led to bad decisions that spun me down a rabbit hole of hell.
Today, I recognize when the fatigue is high.
I recognize when my emotions are off, and I do my best to NOT make decisions in that state.
Even if it means stepping back for 24-48 hours, that is often enough of a window to let myself breathe, to get my brain back in a good spot, and to make a proper decision.
How to prevent a fatigued state
While it sounds nice to just not make decisions in a fatigued state, the reality is that if you aren't keeping your head on straight, then you can get into a fatigued state for a long period of time.
Last year, when I was attempting to sell Lead Cookie, I hit some of the worst fatigue that I had in years. It was mentally draining and overwhelming.
The best ways I have found to to overcome this are meditation, journaling, coaching, hobbies, and just getting outside of work for a while. All of these things are practices that focus on helping keep you strong and aware of yourself. They help you bring your mental emotions to rest so you can see things as they are.
Yet I will admit. Even these tactics aren't enough.
Last year, while trying to balance Lead Cookie, Content Allies, and a potential acquisition, I found myself exhausted. I made many poor decisions in business that led to Lead Cookie's revenue dropping, and a lack of profitability in Content Allies. I was so overwhelmed and faced with decisions everywhere. As a result, I was dropping the ball everywhere.
And so what helped me through that?
Bringing the acquisition to a close.
It didn't work out. And I could have kept the business on the market, but I just cut ties with it. I stopped the process and I reduced my mental overhead. I reduced my fatigue and, as a result, in the past 30 days, we have made massive leaps forward in both Lead Cookie and Content Allies.
While self-awareness and mindfulness are essential to preventing a fatigued state, sometimes it's also the simple fact that you are overcommitted.
Clear your plate. Cut commitments.
Often, that is the best way to reduce the fatigue.
Build systems to offload decisions
Another way to overcome decision fatigue is to build systems. Whenever you have a system in your business, it effectively prevents you from having to make a decision, or think too much about it.
Here is a small example...
Whenever I close a sale at Content Allies, I have a "Closed Sale Checklist." I open it up and complete the actions in the checklist to ensure the new customer gets into our systems properly.
This simple checklist reduces the amount of thinking I have to do. I'm no longer left with the questioning, "Hmmm, did I forget anything?"
A simple checklist allows you to just operate and not have to think as much. This keeps your brain power free to focus on bigger and higher value decisions.
These simple checklists and systems are a great way that even a smaller entrepreneur can help fight decision fatigue.
Making a fast decision can reduce fatigue
As ironic as it is, one of the best things you can do to reduce decision fatigue is to make faster decisions. While you may not always make the right decision, oftentimes, it's better to make a decision than to leave an "open loop" in your brain.
You know the feeling. You've been debating something in your head for days or weeks... then you finally make the decision and commit.... and then you have that (ahhhh) sigh of relief.
Decisions take up mental bandwidth in your head. And when you don't make one decision, it prevents you from thinking and focusing on the next.
Be cautious not to make irrational or snap decisions without proper data, but don't overthink it. Gather the facts, make a decision quickly, and then move on.
Even if your decision is wrong, you will gather data and can course correct and move forward.
Outside sources can help you make better decisions
While it would be great if you could make all of the right decisions yourself, the reality is that an outsider's perspective can help. In "Principles" by Ray Dalio, he talks about finding credible 3rd parties who can weigh in on your key decisions.
For entrepreneurs, that can often take the form of a group mastermind or a business coach. I consistently utilize both throughout my entrepreneurial career as I find them valuable in their own ways.
Through masterminds, I have learned by seeing the challenges and problems of others.
And through my business advisor, Alex McClafferty, I have had some of my biggest assumptions flipped on their head.
Recognize that you don't have to have all of the answers. You can turn to others to help. And in fact, doing so will often lead to better decisions.
Your ability to succeed as an entrepreneur is based on the decisions you make
As an entrepreneur, you make countless decisions every day.
Today, I decided to write this article...
Every decision, small and large, will make an impact on your success, and help you get your business to the place you want to go. Recognize that decision fatigue is real, and you should do your best to prevent it.
Aim to not make decisions in a fatigued state. But, at the same time, don't let decisions linger too long.
It's a delicate balance, but awareness of this phenomenon is the first step.