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Home Business & Finance Entrepreneurship

Overcome Decision Fatigue With This Simple Framework todayheadline

August 5, 2025
in Entrepreneurship
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Opinions expressed by Entrepreneur contributors are their own.

Let’s face it. Decision fatigue is real.

Even the most seasoned entrepreneurs wrestle with it on a daily basis. Research shows that the average person makes nearly 35,000 decisions each day, ranging from the trivial of: “How should I take my coffee?” to the consequential: “Should I hire this candidate who’s asking for more than I budgeted, even though they are an absolute rockstar?”

In business, I simplify decision-making by grouping choices into three categories based on their potential consequences and outcomes: minor impact, medium impact and material impact.

Related: How to Master Decision-Making in a World Full of Options

Minor impact decisions

These are the low-stakes calls where several options can lead to the same general outcome. For example, shall we rearrange the office seating to boost collaboration? Or shall we order two team lunches this week instead of one? Sure, those decisions may improve morale or foster connection, but if you do neither of them, it’s unlikely to hurt the business.

Medium impact decisions

Here is where time and resources start to come into play.

People, money, or both.

Examples include: Should I attend this industry conference and send two team members (instead of just one) to increase visibility? Should I hire a new manager for a team that’s currently under-supported? These decisions require careful prioritization, as timing, bandwidth and opportunity costs are all at very much at stake.

Material impact decisions

These are the make-or-break moments. I call them “material” rather than “high impact” because the term better captures the magnitude.

Quite simply, they are either business builders or business killers.

Business builders could be stretching the budget by $10,000 for a timely PR push because the market momentum feels right or expanding from Agtech into Biotech based on market signals and internal capability. These decisions are bold but strategic.

Business killers? A good example would be to place the wrong executive in a critical role. An employee who is not yet ready or confident in their skillset, or does not have the team support around them. Failing to increase your insurance coverage despite the potential risks is another one that many fall foul of. The fallout from these decisions can be catastrophic, even if the danger isn’t immediate. But when the danger does arrive, it happens like a car crash in slow motion and can be irreversible.

Now that we’ve broken down the types of decisions, let’s talk about the process itself.

1. Decide to decide

The first rule: Make the best decision you can with the information available. Don’t fall into analysis paralysis. There is no such thing as a “perfect” decision. There are only timely ones, as timing is everything.

2. Get the facts straight

Due diligence is non-negotiable. You don’t have to gather all the data yourself, but you do need a clear understanding of the pros, cons, risks and potential rewards. Tools like SWOT analyses can help, especially for material decisions, but the real key is knowing when you have enough to move forward.

3. Listen to wisdom

You don’t have to know everything. You just need to know who and when to ask. Leverage subject-matter experts: your accountant, engineer, marketing lead, lawyer or sales director. Good decisions are built on great input from others.

4. Review and reflect

For medium and material decisions, take time to assess outcomes. Were they business builders or business killers? This ongoing feedback loop strengthens your intuition over time, and yes, luck plays a role too, which is OK. Ninety-nine percent of successful entrepreneurs have ridden their luck at some point in their careers.

Related: 4 Ways CEOs Can Overcome Decision Fatigue

5. Balance data and intuition

My ratio? About 60% data, 40% intuition. Earlier in my career, I leaned almost entirely on data, which often delayed my decision-making. Experience taught me that timely decisions are just as critical as well-informed ones. Intuition isn’t just a “gut feeling.” It’s an accumulated pattern recognition from past decisions.

Hopefully, this framework helps bring clarity to your own decision-making process. By understanding the types of decisions and how to navigate them thoughtfully, you’ll sharpen your instincts and avoid common traps, ultimately mastering the art of decision-making in your business.

Let’s face it. Decision fatigue is real.

Even the most seasoned entrepreneurs wrestle with it on a daily basis. Research shows that the average person makes nearly 35,000 decisions each day, ranging from the trivial of: “How should I take my coffee?” to the consequential: “Should I hire this candidate who’s asking for more than I budgeted, even though they are an absolute rockstar?”

In business, I simplify decision-making by grouping choices into three categories based on their potential consequences and outcomes: minor impact, medium impact and material impact.

The rest of this article is locked.

Join Entrepreneur+ today for access.

Tags: Business ProcessdecisionDecision MakingEntrepreneursFatigueFrameworkLeadershipMaking DecisionsManagementOvercomeSimpletodayheadline
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