Dumb Business Decisions

Hey, no one is perfect.  A Professor of Entrepreneurship at the University of Chicago loves to tell stories about bad decisions he made in investing.  You learn from your mistakes.  20/20 hindsight is great.  You have the luxury of passing time to evaluate what would have happened.  But, in the heat of the moment, even if you use proper decision making theory, you might make an incorrect choice.  Here is a link to an article that illustrates some really poor decisions based on 20/20 hindsight.  

The tech world is littered with some really bad decisions.  It would really be interesting to see what Ross Perot’s blind spot was when rejecting Microsoft.  Perot really understood the industry.  IBM famously didn’t see things his way, he left the company and made a fortune.  Of course, the classic business school case is what was Xerox thinking?  They essentially invented the GUI interface, email, and the useful pieces of the internet and failed to capitalize on it back in the early 1980’s.  Who wouldn’t buy Google for $750,000? Excite didn’t!   

As an entrepreneur, know that some of your decisions are not going to be optimum ones.  When you recognize it, change course if you can.  Don’t beat yourself up, it’s just part of navigating the rough waters of running a business.  When you look at this list, you will realize that you are in good company! 

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