Hats, Haircuts, and Tattoos: A Framework for Better Decision-Making

Hats, Haircuts and Tattoos: A Framework for Better Decision-Making

Every business owner and manager makes countless decisions every day, some minor, some major, and a few that define the course of their business. The key to making smarter choices isn’t just about being decisive; it’s about knowing what kind of decision you’re facing.

You can think of decisions as either hats, haircuts, or tattoos. Understanding which one you’re dealing with can help you move quickly when the stakes are low and tread carefully when they’re high.

Hats: Try It and See

Most decisions in business are like hats. You can try one on, take it off, and swap it for another without much consequence. Choosing a new software tool, testing a marketing channel, or tweaking your store layout are all decisions where the cost of a mistake is low.

If something doesn’t work, you pivot. No harm done. The biggest mistake? Spending too much time debating when you should be experimenting. When a decision is a hat, move quickly, test often, and adapt as needed.

Haircuts: Not Permanent, But Not Instant

Some decisions aren’t quite so easy to undo. They’re like haircuts – you can recover from a bad one, but not overnight. Hiring an employee, launching a new product, or rebranding your business falls into this category. A misstep might be uncomfortable for a while, but in time, things will even out.

The lesson is don’t be paralysed by the fear of a bad haircut. A new strategy, partnership, or investment might not work out, but that’s the nature of business. If it doesn’t go as planned, learn from it, adjust, and give it time to grow back.

Tattoos: Think Before You Ink

Then there are the tattoo decisions, the ones that leave a lasting mark. Selling your business, taking on a major investor, or making a legal commitment are the choices where there’s no easy undo button. A bad call here can follow you for years.

For tattoo decisions, slow down, seek advice, and consider different scenarios. Make sure you’re fully prepared for the long-term impact. Unlike hats and haircuts, there’s no quick fix if you change your mind.

Strategic Decision-Making Starts With Perspective

The biggest challenge in decision-making isn’t just choosing the right option, it’s recognising what kind of decision you’re making in the first place. Not every choice deserves weeks of deliberation, and not every risk is worth a casual approach.

By using the Hats, Haircuts, and Tattoos framework, you can make decisions faster when it’s safe, experiment when it’s smart, and tread carefully when it’s necessary. The result? A clearer decision-making process that helps move your business forward.