Sense-check your reasoning

I once had a coaching conversation with a business owner who was debating a big decision.

Their lease was coming up for renewal and they didn’t know whether they should extend the lease for 1 year or for 5 years.

They were intent on taking the 5-year option for one reason – it came with a modest discount.

When asked if a 5-year lease aligned with their long-term business strategy, they said they didn’t have one.

And then when asked if they wanted to be in business in 5 years time, they said they didn’t know.

It’s never a good idea to enter into a long-term commitment when you’re unclear of its payoffs, particularly if the costs are certain (and sizeable) and the benefits are uncertain.

Though it’s amazing how we can rush into these arrangements when we don’t validate our reasoning with others.

After the conversation, the business owner decided to renew their lease for 1 year.

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