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Micro-decisions are why businesses fail

Name: Micro-decisions are why businesses fail
Uploaded: 2023-01-10T18:00:15+00:00
Duration: 25 s
Channel: Shanli Liu, CPA, CTP
Description: In this brief monologue, Shanli Liu, CPA, CTP argues that the primary reason businesses become stagnant or fail is not large‑scale strategic errors but a…

10 Jan 2023 · 0 min

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In this brief monologue, Shanli Liu, CPA, CTP argues that the primary reason businesses become stagnant or fail is not large‑scale strategic errors but a series of everyday micro‑decisions driven by emotional constraints. She illustrates this with the common scenario of retaining an underperforming employee because the leader feels uncomfortable firing them, fearing it reflects poorly on themselves. This reluctance leads to missed opportunities for growth and profitability. Liu emphasizes that these small, daily choices—especially around hiring and firing—accumulate to prevent business expansion, making micro‑decisions the true culprits behind many failures.

You can build a business, it can be profitable, but they will get stuck where the emotional constraints are for them. Say you have somebody who's in your company that you've hired, and then a year in, they're not the right person, but you allow them to continue to sit in that role because you don't have the cojones to, to fire them because you feel bad or you feel like it means something about you. Because of that, you don't grow your business. A simple decision. It's all in these micro decisions we make. Like a lot of the macro is not actually why business fails. It's all in these little micro decisions we make on a daily basis.