Not long ago, we realized that it is already half of the year, and now we are actually closer to the end of it than the beginning 🫨.
Recently, I had a conversation with a fellow entrepreneur: a highly motivated individual, so in his case the above tip was not helpful. His issue is different. Being a perfectionist, he is frequently indecisive, overthinks a lot, and this eventually causes him to waste a lot of energy and move much less ahead than if he just made a decision and then course-corrected later. He has this pattern not only in business but also when it comes to relationships, etc.
I am in no position to preach, as I am closer to that type of attitude than being a pragmatic “go-getter.” I’ll just share something that has helped me several times in life when I felt “paralyzed,” endlessly analyzing pros and cons.
As humans, we are wired to feel losses twice as strongly as potential gains. This was crucial for survival. Imagine taking a chance on eating a fruit and then finding out later that it was poisonous.
This has now been well researched and is called loss aversion. Being aware of it, what should we do? My approach is to realize that most decisions in life are reversible, very few are not.
As an example, I am at a pivotal moment in my entrepreneurial journey and had to decide whether I should double down on what works and keep doing unfulfilling work that pays well, or instead follow my intuition and heart and finally do the meaningful project I have been postponing because I need more resources. This is typical loss aversion, with other fears also playing a role.
Here is my framework when I start feeling I have been spending too much time making a decision 👇
📝 Name it: Write down in one sentence what you need to decide about.
😨 Identify the fear: Pick what you fear of losing if you take the decision: time, money, comfort, status, or certainty.
⏳ Analyze the cost of waiting: Inaction is a decision too, and it often costs more than we admit.
📊 Think in probabilities: How likely is the worst-case scenario going to happen?
🪜 Make it small: Test the idea with a low-risk step before committing
📅 Set a deadline: Give yourself pressure so indecision doesn’t stretch on forever
🔮 Regret minimization: Pick the option you’d be happier to live with later
😇 Accept imperfect decisions: You do not need certainty to move forward
All of the above shouldn’t take more than 30 minutes, so you have no excuses to be indecisive about being indecisive 🤓.
Recently, I have simplified further: follow my heart and think through the steps to get back up if things don’t go well. In the initial business decision I had to make, I eventually realized that, at least for one year, I can give it my best shot and if it doesn’t work out, guess what? I’ll get back to doing the boring work that was keeping me safe.
I wasted quite a lot of hours and energy on this decision. I hope I can save yours because most of the time, in today’s comfortable world, it is not worth being a victim of loss aversion.
Your weekly tip: Most decisions are safely reversible. The reason you may feel stuck is that you fear what you may lose twice as much as what you may gain. Do a quick analysis and move forward.
Don’t forget to share this tip with a friend who needs to move forward, whether in love or work 🫰
See you next week, until then…
Don’t Panic 😱
“Loss-aversion” is my middle name… I’ll give this method a shot!