Sometimes the most important thing that you can do to achieve business success is making the right decisions at the right moments. But have you ever considered that your mental state could mean that you make different decisions simply because how you feel at the time?
If you take a broad range view and think about where depression fits in, how confidence and overconfidence can affect you, where sobriety and altered states might make a difference, and how your own confirmation bias changes your ability to think clearly, then you begin to understand why decision-making skills in business should be put in neutral territory.
Where Depression Fits In
When you try to handle depression on your own with limited resources, you can end up in a very dark place. In that dark place can negatively affect your ability to run your business properly. If things in your life just don’t seem right, then you may try to overcompensate in the business world, or you may even just surround yourself with people who are taking advantage of you. Making sure that you step outside of your depression to make financial decisions specifically is vital.
Confidence and Overconfidence
There are lots of benefits to confidence in business. However, if you end up approaching a topic with too much confidence or with a sense of pride that isn’t necessarily founded in reality, then you can make extremely detrimental decisions that can have immediate and long-standing financial consequences. It’s important that you always understand what you’re trying to do from a broad perspective, and there is a certain humility that comes with that type of focus. Lose your humility and grace, and your decisions can lead to spectacular falls.
Sobriety and Altered States
There is a lot of history where major business decisions have made by people gathered in back rooms with cigars and whiskey. Though that may seem romantic, making decisions when your inhibitions are limited can lead to a lot of bad things. There’s nothing wrong with having a drink with dinner and discussing matters, but by getting drunk and making decisions that affect not only your life but others as well if you have employees, is something that you should avoid.
Understanding Confirmation Bias
Everyone has their own confirmation biases that they deal with on a daily basis. The problem with this is when you start making business decisions because you believe opinions to be fact, and can’t figure out how to look beyond your narrow perspective into an area where there might be more criticism. You can see millions of examples of confirmation bias in discussions that people have every day. But discussions are one thing, and business decisions are another. Don’t let yourself fall into that trap.