Waiting for Certainty? Your Business May Be Paying the Price

By Greg Johnson

For almost two years, the owner of a precision engineering business waited for the ‘right time’ to replace an ageing CNC machine. The machine, unfortunately, did not share his patience.

Breakdowns became more frequent, production schedules slipped and experienced employees spent too much time working around the problem. Each time the investment came up, the owner decided to wait for greater certainty about rates and customer demand. Certainty never arrived. Higher repair bills, lost productivity and the resignation of a frustrated tradesperson did.

The owner had treated waiting as the low-risk option. In reality, the engineering business had been paying for the delay every week.

Uncertainty may not be the real barrier

Economic conditions matter, particularly when a decision involves capital, debt or a long-term commitment. But uncertainty can also become a convenient explanation when the real issue is unclear information, disagreement between directors, fear of making the wrong choice or simply not knowing where to begin.

The same pattern appears in decisions about hiring, entering a new market, changing management or preparing a business for sale. The owner keeps the decision open but takes no action to make it easier. Months become years while the underlying problem grows.

Separate the market from the business

When profitability falls, determine how much is caused by external conditions and how much relates to pricing, productivity or cost control. When growth stalls, ask whether demand is genuinely weak or whether the business lacks the people, systems and capacity to pursue it.

If a sale is being delayed, examine whether buyer conditions are the real concern or whether owner dependence, customer concentration or inconsistent earnings need to be addressed first.

External conditions cannot be controlled. Many internal weaknesses can.

Test the decision in smaller steps

The equipment decision became clearer when the engineering business owner stopped debating whether the economy felt safe and began comparing practical scenarios. He calculated the ongoing cost of repairs, downtime and lost capacity, tested several finance options and assessed what the new machine needed to produce to justify the investment.

A major decision does not always require an immediate all-or-nothing commitment. A growth strategy can begin with one market. A management change can start with clearer authority and performance measures. Sale preparation can begin with a business appraisal and an honest assessment of the issues affecting value.

Smaller steps produce information, and better information reduces uncertainty.

Give any delay a purpose

Sometimes waiting is the right decision. Cash may need to be preserved, further information may be required or the business may need to improve before taking the next step.

But a sensible delay has a reason, a timeframe and actions attached to it. ‘We will review this in three months after completing the forecast and obtaining two finance proposals’ is a decision. ‘Let’s wait until things settle down’ is usually an indefinite postponement.

You may not be able to choose the economic conditions in which you make an important decision. You can choose how well prepared you are. If something has been repeatedly postponed, ask not only what could go wrong if you act, but what the business is already losing while you wait.

A free and confidential conversation
If an important business, growth or exit decision has been repeatedly delayed, I am available for a free and confidential conversation to help you clarify the options and the next practical step.