I was so profoundly impacted when I heard this story of Thyrocare MD Velumani.
When he was presented with a new machine which enables diabetic diagnosis faster, he decided to buy that machine which costed him 18 crores within 1 hours of discussion.
Highlight ::18 crore decision within 1 hour – Fast Decision Making
Velumani’s son was present in the meeting and after the meeting was over, he came to Velumani and said
“Appa, you took decision to *spend 18 crores* in one hour. I want to buy a car worth of 18 lakhs & you are not taking decision for last 3 months”
Velumani smiled and said to him “This machine is an *investment* and your car is an *expense*”
*So what is the learning here for a Business Owner*
Once we have clarity on what is investment and what is expense, decision making becomes amazingly simple.
I have seen in my life across many workshops that I conducted/participated that People Fear Taking Decisions & that is one of the biggest *Growth Blocker*
As a Business Owner /Entrepreneur, Delayed Decision either becomes Lost Opportunities or Losing edge over competition.
Why are business owners unable to make fast decisions? Some of the reasons could
- Prior experience in life where decision proved to be a bad decision
- Failures caused due to not thinking properly before making decisions
- Fear of loss of money due to past decisions
- Wrong choice made
Whatever the reason making, it’s is very important to have a decision-making framework & clarity when you take out money from your pocket
The right question to ask is
Is this an expense or is this an investment?
It is particularly important to ask this question as it will empower you to make wise choices and become an enlightened entrepreneur.
When people must make a choice between two options, rarely people look at long term benefits or intangible outcomes. The orientation is always towards what is tangible and short term for many people. This is a great mindset shift that is needed irrespective of your life or business.
I see people will spend 1 lakh rupee on small vacation (tangible) but will keep on thinking about 25000 for Annual Gym Membership (intangible) which helps you become fitter, stronger to take on any hardships in life.
I see people spending huge amount on fancy cars (tangible) but will keep delaying attending high class trainings or workshops which can accelerate or give quantum leap to their business just because it is too costly (Intangible outcome)
I do understand for some people, High End Car is an investment as they use it as a marketing tool, a status symbol.
Great! Nothing wrong about it—you have taken a well-informed sdecision.
People may spend huge amount on partying and junk food (this is expense and further expense as you this lifestyle leads to hospitalization expenses later) but will think on buying organic food or vegetables which is 40% costlier compared to normal food.
I agree, everything is debatable here.
But the point of discussion is not that – what is right or what is wrong!
Whatever works for you is the point.
Consciously having that orientation of Expense Vs Investment should be on top of our mind.
Once you decide to invest some money, give priority for investment decisions that yield you better “Return on investment”.
This is a skill to develop over a period of time by some trial & error method with experience & there is no book that can teach you that.
So, what can you do now?
- Make a list of all pending business decisions
- Categorize them into investment and expenses
- Start taking powerful decision faster
*Money Loves Speed*
Apart from this, keep looking opportunities to invest in future stuff which is the most important aspect to survive in business in upcoming times.
We need to invest our time wisely as well; I will cover that in another Business Sutra.
Keep Growing, Keep Evolving