It took me a long time to learn that if I had a FEELING about something, it was most likely correct. For example, I once hired an employee for a sales position. I had a bad feeling about her from the start. Something just didn’t feel right about her. But, she was pretty convincing that she had contacts already in the industry, and that she could really make a huge difference and come in and generate business quickly. So, I took a shot and hired her. Turned out my gut feeling was correct. She turned out to be a big waste of time, money, and resources unfortunately and just wasn’t a very reliable employee.
That happens a lot I think with entrepreneurs. Yet, most of the time, we ignore our gut instincts.
Another thing I have found myself doing a lot in the past is making a decision when my gut tells me one thing, but my “financial gut” is telling me another. An example of this was that I was searching for a new accountant. I met with quite a few of them. One guy was very nice, very outgoing, and had a really attractive fee schedule. But something about it just didn’t feel right. I didn’t feel like I “clicked” with him, and like we were both on MY team. But for some reason I was still thinking of going with him, simply because I hadn’t met someone who I really clicked with, and this guys fee schedule was the best of the bunch.
Then, I received a referral from a friend for an accountant. I went and met with him, and I really clicked with him. He was really aggressive with accounting and tax, and he was someone I could consider part of our team at my company. The problem with him was that he was much more expensive. So my gut instinct is telling me to go with the 2nd guy. My financial gut instinct (Or, as I call it, my CHEAP side) is telling me to go with the cheaper guy… who do I listen to?
In this situation I simply set aside the financial gut instinct and go with my true gut instinct. It took me a long time to realize that this was what I should do, but now I do it almost always. Being frugal is different than being cheap, and being cheap with something like accounting can get you in a lot of trouble! Plus, I need to work with someone I really like when it comes to my money.
So, I went with #2. He’s more expensive, but much more knowledgeable it seems. Have you ever been in this position? What did you do??