Every business executive is going to make mistakes in his career. The important thing is to learn from them—and avoid repetition. But there are certain recurring situations and procedures which seem to invite error and misjudgment. It is up to the alert executive to anticipate and evaluate these “traps.” As for those blunders and errors of judgment which will inevitably occur, the same “millionaire” mentality which ensures success will survive and profit by them.
Three of the major categories of mistakes commonly and most often made by businessmen, especially when they are relatively inexperienced and unseasoned:
The failure—or the inability—to distinguish between what is fact and what is opinion
Though it may be carefully considered and based on fact, opinion nonetheless remains opinion—and it is very seldom infallible. Opinion is never better than the information on which it is based, the qualifications of the person voicing it and his ability to correctly interpret the information at his disposal. Businessmen are sometimes inclined to read or hear opinions and accept them as facts upon which to base their plans or make their decisions without further investigation or study.
In order to succeed in any “deal,” project or endeavor, the businessman must assemble all the available pertinent hard facts and study and analyze them himself. There’s nothing wrong in asking the opinions of others and in taking them into consideration. The mistake lies in accepting and following other people’s advice blindly, in accepting their opinions without first determining if they are backed up by facts.
Fail to stick by the decisions and to the plans
Once satisfied that he has made a sound decision based on sound judgment of the facts, the businessman can plot the course whereby he will implement his decisions or programs. And, he should stick to that course and follow it through.
Young businessmen should have the calm, cool patience to wait until more returns come in nor the experience to understand that a redoubling of efforts or even some slight modification in plan might make the program a complete success, or at least carry it through to conclusion without loss.
Reluct to take risks
A businessman has to be willing to take risks. They may be planned and calculated, but they’re risks just the same. The shrewd businessman weighs all the known and, to his knowledge, possible factors in a given situation. He tries to allow for all the variables, but he is well aware that he cannot think of nor insure against every contingency. He accepts the idea that there is always a possibility that some completely unforeseen element or development will turn up to alter or even wreck his plans. He is, however, secure in the knowledge that he has done everything within his power to tip the odds for success in his own favor.
The businessman who is able to calculate his risks—and then is willing to take them—has his battle for success nine-tenths won. The remaining one-tenth is the unknown variable, the unpredictable factor that puts the zest and excitement into the game. Without that “x” factor, business would be hopelessly dull, routine and uninteresting.
* Source: How to Be Rich by J. Paul Getty