Why smart business owners make dumb decisions

Ever wonder why you make great decisions in the morning but terrible ones by late afternoon?


Or why some days your business choices feel spot on, while other days you second-guess everything?


You're experiencing decision fatigue, and it's costing your business more than you think.


Why This Matters to You


If you're like most business owners I work with, you make hundreds of decisions every day.


  • Which client to call back first.
  • Whether to approve that expense.
  • How to handle a team issue.
  • What to prioritise on your never-ending to-do list.


Each decision, big or small, drains your mental energy. By afternoon, your brain is exhausted, even if you don't realise it. That's when mistakes happen, opportunities get missed, and poor choices creep in – right when you need your sharpest thinking.


Understanding and managing decision fatigue isn't just about feeling better. It's about making consistently better choices that protect your time, money, and business growth.


Why Most People Struggle With This


The biggest reason decision fatigue hits so hard is that most of us don't even know it exists. You blame yourself for lack of willpower or focus, not realising your brain simply ran out of decision-making energy.


Another common trap is trying to power through.


You wouldn't expect your phone to work with a dead battery, yet you expect your brain to make good decisions when it's running on empty.


And in today's world, we face more decisions than ever before. Our grandparents made about 50-60 decisions a day. Now we're making closer to 300.


It's no wonder you're exhausted by 3pm!


Signs You're Suffering from Decision Fatigue


How do you know if decision fatigue is affecting you?


Watch for these warning signs:


  • You start avoiding decisions or procrastinating
  • You make impulsive choices just to be done with it
  • You stick with the status quo even when it's not working
  • You feel overwhelmed by simple choices
  • You make different decisions about the same issue depending on time of day


A while back, I saw this play out with a client who almost signed a terrible lease agreement late one Friday after a week of intense negotiations. The decision fatigue was so severe he couldn't see the red flags that were obvious to everyone else.


How Your Brain Makes Decisions


Your brain has two systems for making decisions.


  • System 1 is fast, automatic, and runs on instinct.
  • System 2 is slow, deliberate, and analytical.


Good business decisions usually need System 2, but that's exactly the system that gets depleted.


Think of your decision-making ability like a muscle. Each decision burns some glucose and serotonin. Make too many decisions without a break, and the muscle fails – even if the decisions seem small or unimportant.


This is why Barack Obama and Mark Zuckerberg wear basically the same outfit every day. One less decision means more mental energy for the choices that really matter.


Building Your Decision-Making Framework


The solution isn't avoiding decisions – it's being strategic about how and when you make them.


Here's how to build your framework:


1. First, identify your high-value decisions. These directly impact revenue, costs, client relationships, or team performance. Schedule these for your peak mental hours, usually morning for most people.


2. Next, create systems for low-value decisions. These are choices you make repeatedly that don't need unique consideration each time. For example, create a standard response for common client requests or set criteria for which meetings you accept.


3. Finally, build decision breaks into your day. Even 10 minutes of meditation, a short walk, or simply looking out the window can reset your mental energy and improve your next decision.


The Power of Decision Defaults


One of the most effective ways to combat decision fatigue is setting "decision defaults" – pre-made choices that automatically kick in unless there's a good reason to override them.


For example, one client created a "meeting default" – all meetings are 30 minutes unless specifically justified. Another set a pricing default – all rush jobs automatically get a 20% premium. These defaults save mental energy while maintaining quality decisions.


You can also use checklists for recurring decisions. A checklist takes the mental load off by externalising the decision process. You're not reinventing the wheel each time – just following a proven path.


Takeaways for Better Decision Making


Before decision fatigue hits:


1. Map your energy patterns and schedule important decisions for your peak hours.

2. Create systems and defaults for routine decisions.

3. Build short breaks between decisions to reset your mental energy.

4. Use checklists for complex but repeatable decisions.

5. imit your daily decisions by batching similar tasks together.


Most importantly, recognise that willpower isn't enough. Even the smartest people make poor choices when decision fatigue sets in.


What's one decision you could systemise this week to free up mental energy for what really matters?