Pulling Triggers & Pulling Plugs

In a recent planning meeting with a colleague, we touched on some techniques that streamline the process of evaluating and making good decisions.  Acting decisively is one of the most vital elements of success.  Determining how, when, where, with whom, and why to act remains our ongoing quandary.  Many people know that “pulling the trigger” is a hallmark of success for entrepreneurs, investors, and successful people in general.  Pulling the trigger properly is not just a matter of deciding yes or no, but involves critical elements of timing.  If you pull the trigger too early, you likely will not have all the information that could have been available to you in order to make the right decision.  However, pulling the trigger too late—which is often known as analysis paralysis—can be just as dangerous.

 Many people suffer from a fear of pulling the trigger which makes it comfortable to continue to analyze an opportunity well beyond the time when they could have or should have acted.  Ideally, we should know the criteria we are seeking thereby making as few decisions as possible.  I look at many business opportunities every week.  I’ve already pre-determined some parameters which make it easier to eliminate possibilities I do not wish to evaluate, so I can focus on those where I may want to pull the trigger.  For example, I don’t invest in ventures that involve tobacco products.  I make no judgement on people who do.  This is simply a decision I have made for myself, so it is easy to eliminate those opportunities.  Like Warren Buffett, I have determined not to invest in ventures that involve technology that I don’t understand.  This saves a lot of time, effort, and energy.

 While many people understand the basic concept of pulling the trigger, very few people embrace an equally valuable process I call “pulling the plug.”  Just as pulling the trigger involves the entry process, pulling the plug involves an exit strategy.  You must know how much time, effort, energy, and money you are willing to invest in any enterprise or pursuit in life.

 I live in a part of the world that is surrounded by oil fields.  Successful oilmen know how to pull the plug.  They realize that it is far better to drill to the level where the geologists expect to find oil or natural gas.  If it’s not there, cap the well and move on to another location where there is a chance of success.  Our natural tendency in the oil business, or any other, is to feel like we have already drilled down thousands of feet and if we throw in the towel now, we lose.  In reality, we’ve already lost, and it’s far better to cut our losses and live to fight or invest another day.

 Before you look at any venture, investment, or relationship, evaluate what you need to know in order to pull the trigger and how far you are willing to go before you pull the plug. 

 As you go through your day today, embrace triggers and plugs as your key to success.

 Today’s the day!