We’ve all heard the phrase “analysis paralysis.”
And if you’re anything like me, you’ve probably lived it too.
While much of my career has been built on risk taking, since starting my own business, I’ve found myself often battling my own inner conservative critic.
When is it the right time to take on a new risk?
When do we have enough information to make an informed decision?
Yesterday, while texting with my friend Eric Olsen about a potential growth opportunity for Kanahoma, he struck me with a simple, but powerful question:
“What’s the downside?”
When I sat back and thought about the opportunity we were discussing, there wasn’t actually much of a downside at all.
I had been so caught up in scoping the upside of the opportunity, that I had missed the most obvious insight:
When downside risk is small, don’t be afraid to act fast.
If you’ve ever read Jim Collins’ Great by Choice (I’m just reading it now on the advice of a friend) you’ll know Eric’s insight echoes Collin’s concept of Fire Bullets, then Cannonballs, which advises that companies should focus first on low-cost, low-risk, low distraction experiments rather than investing in larger, unproven initiatives.
So the next time you’re stuck assessing an opportunity, perhaps consider turning the upside upside down, channeling Eric, and asking…
What’s the downside?
If the answer is “not much,” maybe it’s time to stop asking and start acting. Because when the downside is small, you shouldn’t be afraid to act fast.
About the Author
Seth is the founder and CEO of Kanahoma, a San Diego-based education marketing agency. Operating at the intersection of beautiful brand creative and effective direct response marketing, Kanahoma partners with colleges and universities, education technology and service providers, as well as K-12 organizations.
You can learn more about Kanahoma at www.Kanahoma.com.