Irrational Thinking Is Never Wise in Business

Irrational Thinking is Never Wise in Business

Times are tough. With today's harsh economy, it is extremely difficult to run a business; it is even more difficult to keep a business from failing. Although, there are different strategies and techniques involved in making a business thrive, one sure-fire technique is the process of rational thinking.

What is rational thought? (The meaning may actually differ depending on who is defining it.) Rational thought refers to reasoning as part of the thought process. Adding reason to thoughts and idea in short, rational thinking is to think logically. It is critical to apply rational thinking to any business, no matter what size. A business utilizing rational thinking will always have the advantage over the competition. It will also keep existing customers and add more.

Most companies have a policy that the customer is always right. Even though this may not always be the case, by applying rational thinking, the customer will think that they are right. They will depart the business feeling satisfied and return later. Possibly, with other potential customers, in businesses today, some companies have no idea how to apply rational thought to their business strategies, or even that rational thinking exists. They operate their business on a "learn as you go" policy, constantly losing customers to their competitors. Then in one or two years, they wonder why they are out of business.

According to the Small Business Administration, over fifty percent of businesses fail within the first five years. Three of the top ten reasons for this are due to poor management, insufficient capital and lack of planning. If these businesses were to use rational thinking as part of their business techniques, how many of them would still be operational? Management skills (especially in reference to a small business) are essential for sustained success of any business. Part of the rational thinking process is to make sure members of management have the necessary knowledge to adapt to any situation.

Having a sufficient amount of capital is imperative in any business. Without the necessary means to run a business, the business owner will become so overwhelmed and end up spending their own money merely to stay afloat. By applying logic, there will always be a surplus of capital; enabling them to endure and overcome any hardship the business may encounter.

Lack of planning in any business, can cause it to go from being a thriving enterprise, to going bankrupt, virtually overnight. Applying rational thought and having sufficient detailed plans in every scenario will not only keep the business from bankruptcy; but also keep it one-step ahead of its competitors.

If rational thought is the process of adding reasoning to thoughts and ideas then the reverse is also true. Not thinking