Are You Being Blinded by Brilliance and Compounding Mistakes with Debt?

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Do you have a great business idea?  Is your brilliance so stunning that it’s blinding your borrowing sense?

In a recent post by Marla Tabaka she blogged about how to execute great ideas.  You know, those ideas that are sure winners in business if only your customers would understand.  But when our brilliance is blinding we often make desparate moves to turn our idea into reality.  And then we compound the bad decision with debt.

Marla makes a strong case that you should compare your idea or strategy to your vision and mission statements. Is there synergy and a fit with your long term goals?  Is it wide of the mark or is it a big picture fit?

Avoid the “big idea” borrowing mistakes with these tips:

  1. If you are in a lofty position of leadership you might have impaired thinking like a pilot flying high without oxygen.  Avoid leadership hypoxia by validating your business borrowing plans with others at a lower altitude in the org chart.
  2. Animals find their way in the woods by path integration.  Business borrowers don’t have that ability so strategic borrowing plans are key to avoiding financial rabbit trails.
  3. Avoid selling your business potential and profits by calculating the true cost of borrowing from the future to play today.

The “great idea” can consume our energy and cause us to lose track of our true vision. The path we never intended to travel takes us on a winding detour with no guarantee that we’ll end up where we want to go.  Don’t leverage your misadventure with borrowed money.

Readers, how did you find your way back after wandering off the trail of your strategic plan?

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About Michael Shelton

Your Business Coach Facilitating Delegation and Work Group Engagement Michael Shelton has over twenty-five years of business and military accomplishments, including extensive experience with one of the largest, publicly traded real estate investment trusts (REIT). He is a qualified business coach with assignments in cross-functional work group management, strategic planning, unit leadership, joint venture acquisitions, executive education, mentoring, training and merger integration. Michael has accumulated best practices for building committed work groups from more than $4 billion of capital markets transactions and commercial property development. He served as a commissioned officer and helicopter pilot in the U.S. Army, and earned his MBA from The University of Arizona. Michael has served as a major conference panelist and is the author of Cash Flow Rich, Winning Ways to Evaluate and Finance Real Estate. Today, he helps business owners get more work group engagement as President and CEO of Shelton Business Services, LLC in Scottsdale, Arizona. Disclaimer: I don't offer investment, legal or tax advice. Talk to your broker, accountant or lawyer for investment, tax and legal help. I might own stock in the companies I mention on-line. My posts, tweets and other on-line activity are my personal thoughts and don't represent my employer or company.
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One Response to Are You Being Blinded by Brilliance and Compounding Mistakes with Debt?

  1. Pingback: How to Manage Your Mood to Improve Decision Making Ability | Borrowing Money: Your Handy Guide

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