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The Hat, the Haircut, and the Tattoo
Building a side business requires making crucial decisions to take your business in the right direction. But how do you know when to take a risk or play it safe?
James Clear's witty analogy provides valuable insights that can help you build your lifestyle business quickly and effectively.
I came across James Clear’s amazing analogy for making decisions last week.
“I think about decisions in three ways: hats, haircuts, and tattoos.”
~ James Clear
I thought of how I could apply this to building a side business. Here is the analogy and how you can use it to build a side business.
HATS: SMALL DECISIONS, FAST ITERATION
“Most decisions are like hats. Try one and if you don’t like it, put it back and try another. The cost of a mistake is low, so move quickly and try a bunch of hats.”
Like trying on different hats, there are decisions in your business that have minimal consequences. These are the "hats" you can experiment with freely.
Try different marketing strategies, test new products, or adjust your pricing.
If something doesn't work, put it back and try something else. The cost of a mistake is low, so move quickly and test a variety of options.
Don't be afraid to fail fast and iterate.
HAIRCUTS: REVERSIBLE MISTAKES, POTENTIAL CONSEQUENCES
“Some decisions are like haircuts. You can fix a bad one, but it won’t be quick and you might feel foolish for a while. That said, don’t be scared of a bad haircut.”
As your side business grows, you'll start facing more consequential decisions that require a bit more thought and care.
These could be hiring your first employee, committing to a major business partnership, or overhauling your core product offering.
While you can course-correct from these "haircut" decisions, it won't be a quick or painless process.
But don't let that stop you from taking calculated risks. Trying something new is often the only way to take your business to the next level.
TATTOOS: IRREVERSIBLE CHOICES, PERMANENT IMPACT
“A few decisions are like tattoos. Once you make them, you have to live with them. Some mistakes are irreversible. Maybe you’ll move on for a moment, but then you’ll glance in the mirror and be reminded of that choice all over again. Even years later, the decision leaves a mark. When you’re dealing with an irreversible choice, move slowly and think carefully.”
And then there are the truly high-stakes, irreversible decisions you'll face as an entrepreneur - things like quitting your full-time job, relocating your business, or making a major financial investment.
These "tattoo" decisions require an extra level of thoughtfulness and care.
Move slowly and make sure you're fully committed before pulling the trigger. The consequences of a mistake here could be severe.
These choices should be made with extreme caution and careful consideration. Take your time, consult with experts, and thoroughly weigh the pros and cons.
As you navigate the journey of building your Lifestyle business, keep these three decision archetypes in mind.
Be quick and experimental with the low-stakes "hat" decisions, thoughtful and deliberate with the medium-stakes "haircut" decisions, and extremely cautious with the high-stakes "tattoo" decisions.
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Until next time
May the odds ever be in your favor
These are simply illustrations that are not foreign even with the most common and simplest person of them all, the true they are carry are impactive and life saving. Otherwise, this is helpful to me as an inteprenuer.