A Powerful Approach to Entrepreneurial Decision-Making.
Imagine you’re standing in front of a buffet with 100 different dishes.
Do you try a bit of everything to find the perfect meal? Or do you pick the first few items that look good?
Your answer reveals a lot about how you make decisions as a founder.
As an entrepreneur, you face this buffet every day. But instead of food, you’re choosing strategies, hires, technologies, and more.
Today, we’ll explore two approaches to this choice buffet: maximizing and satisficing.
The Maximizer's Dilemma
Maximizers are like the people who sample every dish at the buffet. They’re in pursuit of the perfect choice.
- They explore all options
- They compare extensively
- They seek the optimal solution
CALLOUT But here’s the twist: maximizers often end up less satisfied with their choices.
Why?
- They doubt if they made the right choice
- Their expectations keep rising as they explore more options
- Decision fatigue sets in, clouding their judgment when it’s time to make a decision.
The Satisficer's Secret
Before you decide it’s a spelling mistake, let me define the word “satisfice.”
Satisfice means to pursue an outcome that is satisfactory, rather than perfect. The word combines “satisfy” and “suffice.”
Satisficers are like the people who fill their plates with the first few good-looking dishes they see.
- They set clear “good enough” standards
- They choose the first option that meets these standards
- They recognize that “perfect” often costs too much
CALLOUT Here’s the kicker: satisficers often report higher satisfaction and achieve better outcomes.
The Power of "Good Enough"
In the fast-paced world of entrepreneurship, a good decision made quickly often beats a perfect decision made too late.
Satisficing isn’t about settling. It’s about efficiency.
It’s about knowing when “good enough” is actually best.
When to Maximize, When to Satisfice
Knowing the difference between maximizing and satisficing is only half the battle.
The real skill? Knowing when to use each approach.
Think of it like choosing between a Swiss Army knife and a chef’s knife. Both are useful, but in different situations.
When to Maximize
- Long-term, irreversible decisions. Example: Choosing a co-founder
- High-stakes situations with significant upside. Example: Deciding on your core product strategy
- When you have ample time and resources. Example: Planning your company’s 5-year vision
When to Satisfice
- Speed is crucial. Example: Responding to a sudden market shift
- The decision is easily reversible. Example: Trying out a new project management tool
- Resources are tight. Example: Hiring for a non-critical role with a pressing deadline
Practical Application: The Entrepreneur's Toolkit
Pro Tip: You can use satisficing to maximize your overall success.
By satisficing on small decisions, you free up time and mental energy for the big ones.
It’s not about making perfect decisions. It’s about making the right decisions perfectly.
Here are a few more ways to support your decision-making process:
- Set clear criteria: Before you start, define what “good enough” looks like.
- Time-box decisions: Allocate specific time for research and decision-making. When time’s up, decide.
- Use the 80/20 rule: Identify the 20% of factors that will drive 80% of the results. Focus on these.
- Maximize for big, irreversible decisions: Product strategy, core team hires, major pivots.
Satisfice for smaller, reversible decisions: Office supplies, minor feature updates, daily operations.
The Decision-Making System
The best founders don’t rely on random flashes of insight.
They build systems for making decisions.
In scaling a business, a repeatable process beats random brilliance.
Think of it like an assembly line for your thoughts:
- Each decision follows a systematic approach
- This creates consistency in your choices
- It turns decision-making into a scalable process
The result? A business that grows methodically and predictably.
Your Decision-Making Workout Plan
Like any skill, decision-making improves with practice.
Here’s your workout plan:
- Reflect daily. Ask, “Did I maximize or satisfice today? Was it the right approach?”
- Start small. Practice satisficing on low-stakes decisions.
- Set decision deadlines. Don’t let perfect be the enemy of done.
- Celebrate ‘good enough’. Acknowledge when satisficing leads to positive outcomes.
- Learn from each decision. Whether you maximize or satisfice, extract a lesson.
Remember: The goal isn’t to make perfect decisions. It’s to make decisions perfectly.
Great CEOs don’t just execute strategies. They master the art of thinking.
Coaching with me isn’t just about business tactics. It’s about upgrading your mental operating system. The idea is to train you to use a variety of Mental Models and Frameworks like First Principles Thinking, Inversion, The OODA Loop, and more.
These aren’t just buzzwords. They’re cognitive power tools.
They help you see clearer, decide faster, and scale smarter.
CALLOUT Remember: The best investment in your business is an investment in learning to think.
The Bottom Line
In the buffet of entrepreneurial choices, you don’t need to taste everything.
You just need to know how to build a satisfying plate.
Maximize when it matters most. Satisfice to move fast and conserve energy.
You will have peace of mind.
Here’s to your business breakthrough,
Surabhi,
CEO Coach
P.S. Know a fellow entrepreneur working too hard for too little reward? Forward this email – they’ll thank you for it!
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