February 24, 2005

"Making no decision is worse than making a wrong decision"

VC Fred Wilson writes on his blog:

I believe that Teddy Roosevelt (one of my favorite Presidents) had it right when he said:
In any moment of decision the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.
The CEO (of one of Wilson's portfolio companies) did something. Some of what he did was wrong. But he realized it, changed course, and he's still a lot better off than if he did nothing.

Had he analyzed the situation for another 3 months, he wouldn't be better off. He'd be no better than where he is today and possibly a lot worse.

I think action and risk taking is what separates great entrepreneurs from the pack. I am not advocating blind risk taking, but I am advocating making a decision based on less than perfect information and going for it. More often than not, you will be rewarded for doing that.

Arun Natarajan is the Editor of TSJ Media, which tracks venture capital activity in India and Indian-founded companies worldwide. View sample issues of TSJ Media's Venture Intelligence India newsletters and reports.