Written By Millionaire’s Digest Team Member: Jamie Irvine
Founder & Owner of: Influence Revenue
Millionaire’s Digest Team, Contributor, Blogging, Books, Business, Entrepreneur, Family & Life, Sports and Technology Writer
When faced with challenges in our business we often form opinions about the causes and solutions based on information that ranges from evidence based facts to emotionally charged gut feelings. We are often also influenced by conventional wisdom and the opinions of others.
Let’s say that your business is faced with increasing costs and declining revenue. The conventional wisdom would be that the two trends are directly connected. You assume that rising costs are eating away at your profitability therefore directly causing your revenue to decline. After looking at your financials you may even see some evidence that this is happening.
Is that what is actually happening? If you make decisions based on these assumptions and evidence you will travel down a path in very specific direction. What if you kept an opened mind and consider a totally different possibility? How would that affect your choices and actions?
If you were to develop a strategy solely based on the assumption that increasing costs is what is driving down revenue you would likely focus on developing cost saving measures and you may invest in additional sales and marketing to increase revenue. What would you do if those actions made the problem worse and revenue declined even further despite your efforts to reduce costs and increase sales?
My suggestion is to “do everything differently” and this is how it works:
- Instead of assuming the two trends are connected assume they are not connected. What could be the independent causes?
- Instead of looking at your financials searching for a connection, search for evidence that the two trends are not connected. What do your financials indicate could be driving up your costs? What do your financials indicate could be causing your revenue to decline?
By “doing everything differently” you will explore a wider range of potential causes and solutions. This will allow you to travel down several different paths and explore if there is evidence to support the various assumptions. After exploring multiple possibilities and the evidence or lack thereof you can then chose the path you will take and the specific direction you will travel.
This approach is certainly not restricted to just solving business problems, this approach can be taken with so many challenges, opportunities, and areas of our life. Keep an open mind and resist the urge to jump to conclusions before considering multiple points of view.
If you have a story about how you did everything differently I would love to hear from you. You can reach me directly by email at firstname.lastname@example.org.
Article Credits: Jamie Irvine
Millionaire’s Digest Team, Contributor