Insights on Decision-Making from a Founder's Journey in a Rigorous Industry
A key lesson learned is that every decision will eventually face scrutiny.
Opinions expressed by Entrepreneur contributors are their own.
Key Takeaways
- Although speed is important, long-lasting decisions prioritize thorough documentation, rigorous testing, and accountability over short-term ease.
- The most effective founders go beyond asking what is permissible to determining what they can robustly defend in public settings.
Every decision attracts scrutiny sooner or later. Operating in an environment where regulators, retailers, and consumers are all attentive accelerates this inevitability.
Take, for instance, my decision to terminate the partnership with our co-manufacturer after several months of collaboration. While their pricing was favorable and product quality decent, the crux of my decision lay in documentation. We consistently struggled to receive coherent process records. Not due to their absence, but because the system for producing them was so informal that the output varied widely depending on who managed the task.
That variance at the sourcing level inevitably translates into inconsistency on retail shelves. Understanding this, I made the difficult choice to part ways and sought out a new supplier, incurring additional expenses and disruptions in an already constrained operational budget. At that moment, it felt like a mistake with long-term repercussions; we were a relatively new venture and had just added operational complexity we couldn’t readily accommodate.
In retrospect, the true nature of my decision extended beyond the immediate context of the co-manufacturer. It was a practice in the art of making decisions that withstand scrutiny before external assessment occurs. Adopting this habit proves more challenging than many entrepreneurs realize, and neglecting it in a high-accountability industry can lead to far-reaching consequences.
Speed is Beneficial — Until It Isn't
Most entrepreneurs are instinctively forced to make quick decisions. Resources are limited, and competition is fierce. Hesitating can mean missing out on opportunities while others gain ground. Speed can easily be misconstrued as a reflection of sound judgment, especially during the nascent phases of a startup, where that assumption often holds true.
However, the core issue isn't the speed itself — it arises when quick decision-making becomes the sole parameter for evaluation. Taking shortcuts on testing processes, making verbiage claims that are loosely based in fact, or agreeing to supplier arrangements without comprehensive vetting may seem inconsequential at the moment. They appear as necessary trade-offs for early-stage founders intent on maintaining a competitive edge. In a forgiving market, these decisions may not raise eyebrows.
In a sphere marked by intense scrutiny, consequences surface eventually. They may not be immediate; rather, they surface quietly in a retailer’s review process, a regulator’s probe, or a public complaint from a customer that gains traction. By that point, the seemingly efficient decision made months prior becomes a challenge best managed under duress rather than an issue effectively dealt with beforehand.
What became clear to me was the need to reevaluate the value of speed as a standalone virtue. The relevant inquiry shouldn’t be, “How swiftly can I reach a conclusion?” Instead, it should be, “How resilient is this decision under careful scrutiny six months down the line?” That shift is not about slowing down; it’s about cultivating approaches that lead to sustainable decisions.
The Visible Costs of Difficult Decisions
I won’t sugarcoat it: the choices I've made that could withstand scrutiny incurred costs — visible ones, to be specific.
Instating a strict 21+ policy regarding our Mitragynine offerings prior to it becoming a standard in our industry led to real account losses. I lost specific accounts because buyers opted for competitors who didn’t impose the same constraints. Investing in comprehensive third-party testing throughout the supply chain, a step no one demanded yet, meant channeling limited financial resources into infrastructure that didn’t yield immediate returns. Walking away from our co-manufacturer resulted in significant operational interruptions at a time when every moment of disruption was costly.
Each of those choices felt questionable at the time. They seemed slow and expensive, and several times, it appeared we were at a disadvantage relative to competitors taking the opposite approach. Some competitors were faster. Some secured key accounts we aspired to have. I watched it unfold, but I still chose to make the harder trade-offs. The alternative was to establish a business that only thrived when no one was scrutinizing it closely.
What I didn’t fully grasp back then was that these choices served as practice. Every decision that could face scrutiny taught me to rehearse my rationale long before others required me to justify it.
By the time regulators, retailers, or the media posed challenging questions, I wasn't scrambling for an answer. I had already made decisions, well aware that scrutiny was inevitable.
Crafting Judgment Through Experience, Not Epiphany
Making decisions under scrutiny is a skill forged through incremental learning, akin to building any other operational proficiency — and typically in ways few witness.
In the beginning, choices may seem isolated: selecting a vendor, articulating a product claim, enacting a policy with no immediate external requirement. On their own, these decisions appear devoid of strategic significance. However, founders who consistently approach decision-making this way soon discover that the methodology for navigating future decisions solidifies more quickly compared to prior ones. It’s not a matter of reduced stakes but of enhanced pattern recognition.
You shift from considering what's allowed to contemplating what's defensible. Your perspective pivots from observing competitors to determining what you'd want to articulate publicly, should the decision come under scrutiny.
This shift isn’t found in management manuals or through mentor interventions. It emerges from being caught off-guard a few times by decisions that seemed acceptable until a probing question unveiled your lack of preparedness. Each of these instances recalibrates your judgment, shifting the bar for what qualifies as ‘acceptable.’ Choices that previously seemed satisfactory in year one no longer meet the threshold in year three. This evolution isn’t about being overly cautious; it’s about judgment refining itself.
The Right Question to Ask
In my early days, like many founders, I defaulted to seeking justification for decisions: What can I explain later if someone pushes back? It’s a logical inquiry, but ultimately the wrong one, as it assumes you’ll have the luxury of time to construct a defense after the fact, which is rarely the case in high-scrutiny situations.
The pertinent question transforms into this: Would I still make this choice if I knew — not merely suspected — that someone would examine it scrupulously? This reframing removes the convenience of assuming scrutiny won't arrive. Sooner or later, a decision will be examined closely, and this approach compels you to ensure the decision stands robustly on its own merits, rather than just appearing defensible under favorable circumstances.
Founders who internalize this principle early may not avoid mistakes altogether. However, when they err, their misjudgments typically stem from limited information rather than deliberate shortcuts taken with foreknowledge of risk. This distinction matters significantly, as evaluators of your decisions—whether they be retailers, regulators, investors, or customers—can generally discern the difference.
Learning from the Industry, Whether Prepared or Not
No one intentionally designs their decision-making processes within a highly regulated sector. Most of us find ourselves here due to the prevailing opportunities, not by choice of embracing the added pressure.
However, if you persist long enough, the environment shapes your mindset. It accelerates the development of judgment that founders operating in more lenient domains often don’t obtain until much later, if at all. The questions escalate in difficulty, and the repercussions of inadequate answers manifest sooner. The distinction between decisions that hold up and those that merely seem decent becomes more apparent before you build too much upon them.
This approach can be uncomfortable in your early years, but it proves exceedingly valuable by the fifth year. Founders who endure in closely monitored sectors are not necessarily the most skilled or resourceful; they’re the ones willing to allow the environment to instruct them on what they need to learn, well before it’s too late.