However, emotions are an essential part of human nature and can be useful if channeled appropriately.
The challenge is to avoid making hasty decisions in response to heightened emotions, especially when there are pressing issues that require immediate attention.
It is important to understand that emotions are there to help us identify dangers and make connections.
Emotions can negatively impact business decisions.
For instance, when you experience a surprise expense, you may be tempted to panic and make poor choices, such as taking a high-interest loan or using the company credit card to pay the bills.
These are impulsive decisions that could lead to dire consequences.
To avoid such scenarios, the speaker recommends putting in place controls and systems that enable logical decision-making.
This includes having up-to-date bookkeeping, preparing a cash flow forecast for at least three months, and being clear on what cash is required when.
It's also essential to avoid overestimating income and underplaying costs.
By having these systems in place, you can make decisions from a position of logic and control, rather than fear or emotional reactions.
You'll have time to consider various options and make informed decisions that are beneficial for your business.
While emotions are an essential part of human nature, it is vital to channel them appropriately.
By implementing controls and systems that facilitate logical decision-making, you can make informed decisions that benefit your business.
Listen to the Podcast Episode about The Dangers of Emotional Decision Making in the Business here.
