Business Education

How to Avoid Decision Fatigue; Wait, Avoid What?

Decision fatigue. It’s a phenomenon which probably affects you. Yet, you’re not truly aware of it. Put another way, you’ve likely felt its impact, but just didn’t know what to make of it. Or, more particularly, what to call it. That’s okay. It’s something many people experience a few times. Others are hit with it a lot — a whole lot. Usually, these are individuals in positions of authority. You know, the “decision makers.” Although we joke about it, the truth of the matter is, making decisions gets harder and harder as the day goes on. So, let’s look at some ways to avoid decision fatigue.

Is Decision Fatigue Actually Real?

The short answer to the question above is a resounding, “Yes!” Decision fatigue is real. In fact, two university researchers examined more than 1,000 decisions made by judges in Israel. Said judges either decided to grant or to deny parole. Prisoners who appeared in the morning, about 9 am, fared quite well. Those offenders had a 70 percent chance of making parole.

Decision fatigue can seem harmless enough. Spending a few extra minutes deciding between chicken or beef isn’t the end of the world. But what you may not realize is that those little moments of turmoil could be negatively impacting your business. If left unchecked, decision fatigue can lead to reckless behavior like compulsive spending or, worse, the inability to make any decisions at all. —CNBC.com

But, by the time mid-afternoon rolled around, those chances dropped down to just 10 percent. The conclusion, of course, was the judges simply used-up their stamina and therefore, took the simplest and safest way out.

Ways to Avoid Decision Fatigue

Now, if you’ve ever felt “used-up” at the end of the day, like your brain can’t process any more, decision fatigue is a likely culprit. Here are a few suggestions for how to avoid decision fatigue to better your work performance:

Start tomorrow today. At the end of every day, start getting things in order for the next morning. Don’t make big decisions. Just get organized so you’re ready to go when you come back tomorrow. While this might seem too simple, it will have a big impact.
Make important decisions early. When you start your day, don’t “ease” into it. Instead, challenge yourself by making the most important decisions when you’re most fresh and have new energy. You’ll see things more clearly and have a better sense of which way to go.
Stop second-guessing yourself. In the military, some class instructors tell their students to bite the erasers off of their pencils right before starting a test. It’s not literal — it’s a figure of speech. It means your first intuition is typically the right one; so, don’t second-guess yourself.
Snack and exercise every day. It’s a very good practice to have a solid but sensible breakfast in the morning. A light lunch is also a sound practice. But, you might feel a bit worn by mid-afternoon. The cure? Exercise and have a small snack to re-energize.

What other ways do you combat decision fatigue? Please share your experiences by commenting!

Interested in learning more about business? Then just visit Waters Business Consulting Group.

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What Small Business Owners Need to Know about Instituting Employee PTO

September 1, 2023 No Comments

Providing Paid Time Off (PTO) is a critical component of a comprehensive employee benefits package. For small business owners, understanding the nuances of PTO can be crucial for both employee satisfaction and business success. In the following article, we will explore the pros and cons of offering PTO to your team members, helping you make informed decisions that balance employee well-being and operational efficiency. The Pros and Cons of Small Businesses Offering Paid Time Off As you already know, Paid Time Off (PTO) is a benefit that allows employees to take time away from work without losing pay. It can be used for vacation, sick leave, or other personal reasons. While there is no federal law requiring small businesses to offer PTO, many states do have their own laws. For example, California requires employers to provide at least 10 days of paid vacation per year after an employee has been with the company for one year. So, be sure to look into the specific laws in your area in order to be legally compliant. Pros of Offering PTO When small business owners first consider instituting a Paid Time Off program, they of course think about the cost. But entrepreneurs should also equally consider the enjoyment current employees will experience, and the appeal it will have for future hires. Such a benefit has other positives, too, including the following: Employee well-being. Offering PTO demonstrates your commitment to your employees’ work-life balance and overall well-being. PTO also helps reduce stress levels for employees. When employees are able to take time away from work to relax and recharge, they are better able to cope with the demands of their jobs. Enhanced morale. PTO boosts employee morale and job satisfaction, leading to higher levels of motivation and productivity. When employees feel like they are valued and have the opportunity to take time off, they are more likely to be happy and engaged in their work. Attracting talent. A robust PTO policy can attract top talent, showcasing your business as one that values its employees’ time and efforts. In fact, a survey by Glassdoor found that 72% of employees would be more likely to accept a job offer if it included PTO. Reduced burnout. Regular breaks contribute to reduced burnout, increasing employee engagement and long-term retention. This in turn, also reduces employee turnover, which is yet another huge benefit, especially in terms of continuity. Flexibility. PTO provides employees with flexibility to address personal matters, reducing stress and absenteeism. It also provides them with a sense of freedom and less apprehension about having to ask for time off that is not compensated. Plus, Paid Time Off will help to boost creativity and innovation. When employees are able to take time away from their work, they can come back with fresh ideas and perspectives. Cons of Offering PTO Okay, there’s just no getting around the fact that with any change, even an ostensibly positive one, it will come with at least a few downsides. With this in mind, here are the most common disadvantages small businesses experience when introducing such an employee benefit: Operational impact. PTO can disrupt daily operations, especially if multiple employees are on leave simultaneously. That means it’s best to coordinate ahead of time in order to avoid such inconveniences. Financial considerations. Paid time off requires budgeting for wages during employee absences, potentially affecting cash flow. Be sure to have this worked out before making an announcement to your team. Workload redistribution. When employees are on PTO, their tasks may need to be redistributed, causing potential strain on remaining team members. Potential abuse. Some employees might abuse PTO, leading to reduced team productivity and resentment. Yet another downside is a lack of coverage. In a small team, the absence of a key employee on PTO might result in a lack of expertise or coverage. Additionally, if too many employees are taking time off at the same time, it can be difficult to keep the business running smoothly. Tips for Effectively Implementing PTO Policies The decision of whether or not to offer PTO is a complex one. There are many factors to consider, such as your budget, the needs of your employees, and the laws of your state. If you are considering offering PTO, here are a few more things to keep in mind: Clear guidelines. Develop clear PTO policies, outlining accrual rates, approval procedures, and blackout periods. Advance notice. Encourage employees to provide advance notice for PTO requests to facilitate operational planning. Fair allocation. Ensure PTO is allocated fairly, preventing any perception of favoritism or inequality. Seasonal considerations. Plan for peak seasons when PTO might be challenging to accommodate without affecting business operations. Encourage balance. Promote the use of PTO to maintain a healthy work-life balance among employees. Of course, communication is also important. Clearly communicate your PTO policies, including how to request time off and the expected response time. Offering Paid Time Off is a critical consideration for small business owners, with far-reaching impacts on both employees and operations. The benefits of PTO, including improved morale, productivity, and employee well-being, can offset the challenges of operational disruptions and budgeting. By thoughtfully designing and implementing PTO policies, small business owners can create a positive work environment that attracts and retains top talent, promotes employee satisfaction, and contributes to the overall success and growth of the business. Interested in learning more about business? Then just visit Waters Business Consulting Group to learn more about us and the services we offer.

How Entrepreneurs Can Establish Good Business Credit

June 1, 2018 No Comments

When you open a small business, you have the opportunity to build credit separate from your personal credit. The better your small business’ credit, the better terms you can get with supply vendors and lending institutions, like banks. This means being able to borrow at a better rate to finance expansion in the future. Why Building Good Business Credit is Important Like personal credit, business credit is monitored and reported by credit bureaus. “The major business credit bureaus that compile and provide copies of the reports are: Dun & Bradstreet, Experian Business, Equifax Business, and Business Credit USA,” according to one credit expert. By having a business credit history separate from your personal one, you can minimize the effect negative events on one might have on the other. For example, if you have some financial missteps that impact your personal credit history and score, they shouldn’t impact your small business credit if you have established a clear separation and vice versa. —Biz Filings.com Building business credit is essential to a company’s reputation and success. Establishing good business credit is done through a combination of practices. Your small business will have to observe these to build a solid commercial credit record. How Entrepreneurs can Establish Good Business Credit When you start a company, you’ll probably need corporate credit for a number of things. Keep in mind, though, these are ultimately your personal responsibility. So, make sure you understand the terms. Here’s how entrepreneurs can establish good business credit: Secure a debt instrument in the business’ name. A “debt instrument” is simply another term for “loan” or “line of credit”. It means you are borrowing money in advance or taking on debt to purchase necessities for your business, like fixtures, equipment and supplies. Apply for a business loan, line of credit, or vendor credit that does not check your personal credit score or history. You are attempting to obtain credit in the business’s name only. Commercial lenders may waive personal credit checks in lieu of providing collateral or a down payment. Another method for securing a debt instrument is to apply for a credit card in the name of your business. Terms and reporting procedures will vary by credit card companies, but in general, the monthly payments will reflect on your business’ credit profile. Build your credit history. Make credit line and business loan payments on time. Schedule automatic payments debited from your business checking account for business loans and lines of credit. Or make payments on recurring credit lines or loans at least three to five business days in advance of the due date. Get in the habit of making payments larger than the minimum due. Check your business’ credit files for errors. Request copies of your business credit report from each of the corporate credit monitoring bureaus, six to 12 months after securing a commercial loan or line of credit. Review each report for accuracy and dispute any errors directly with the agency reporting the erroneous items. If errors are disputed to no avail and are not legitimate, consider having your attorney contact the reporting agency to resolve the situation. Like personal credit reports, business credit reports may be adversely affected by incorrect trade lines being reported. How have you established business credit? What mistakes would you avoid? Please share your thoughts and experiences! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Here are the 3 Biggest Self-Imposed Entrepreneurial Roadblocks

June 27, 2018 No Comments

More often than not, the person in the mirror is the individual who is most to blame for your problems. Usually, lack of success isn’t due to external circumstances or a run of bad luck. Poor decisions are typically the culprit. And, these mostly come from the failure to recognize certain self-imposed roadblocks. How Modern Culture undermines Businesses Now, this doesn’t mean there are never any real externalities which play a significant role. Just take a quick look at modern culture. Practically everything is now on-demand. We live at a time where immediate gratification is normal. But, that’s a dangerous situation. Success is what every business person and entrepreneur desires from the very core of their being. They have a dream, a genius idea and an initial excitement to make it happen. Having a great idea and building a sustainable empire, however, are very different things and many, if not most, fail. To rank among those who succeed you must master certain disciplines to avoid sabotaging your own success. —Entrepreneur.com You first need to instill self-discipline and realize it’s more advantageous to accomplish your biggest goals in small steps. An incremental approach will cause you to think through scenarios and have a more clear understanding. However, just taking it step-by-step might not be enough. 3 Biggest Self-Imposed Entrepreneurial Roadblocks Let’s get back to how too many entrepreneurs sabotage themselves. They put up roadblocks which keep them from realizing their full potential. So, here’s the three most common self-imposed roadblocks you need to recognize and deal with: Not recognizing futility for what it is. If you’ve ever seen the movie “Wargames,” then you know the scene when Dr. Stephen Falken uses the example of tic-tac-toe to illustrate the importance of recognizing futility. But, that’s the exact opposite of what we hear time and time again. You’re not supposed to give up. Keep fighting and find a way. However, there are times when it’s just futile and you can’t win. Remember Einstein said repeating the same thing and expecting different results is the definition of insanity. Seriously doubting your own abilities. This is perhaps the most common self-imposed roadblock. It’s natural to have reservations, even to feel fear and/or doubt. Although, too much doubt is a poison pill. It’s simply paralyzing and ultimately self-defeating to give into unrealistic doubts. Saying “Yes” when “No” is appropriate. We’ve all heard the advice to give things away for free or at little cost. Additionally, to always help others. But, saying “Yes,” can easily obstruct your ability to grow your business. After all, you need to focus on your own business to build it up before you can actually be in a position to help others do the same with their companies. What other self-imposed roadblocks have you overcome? How do you move past your own limitations? Please share your thoughts by commenting and joining the conversation! Interested in learning more about business? Then just visit Waters Business Consulting Group.