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Business Strategy with Hirav Shah JULY 04, 2025 | The Indian Eye 42

THE POWER OF VALIDATION: MAKE SMARTER

BUSINESS DECISIONS AND AVOID COSTLY MISTAKES

Every business decision is a leap of faith. Whether you’re launching a new product, expanding into a new

market, or considering a strategic partnership, the stakes are high. But what if you could remove the guesswork?
Imagine having a clear, validated path that minimizes risk and maximizes success.

7-S, SWOT Analysis, Astro Strategy)

Step 6: Evaluate Alignment with Long-
Term Strategy
A decision may seem beneficial
in the short term but could conflict
with long-term business objectives.
Can You Ever Imagine?
• Expanding to a new country sounds
exciting, but if your supply chain
isn’t scalable, it might create more
problems than solutions.
HIRAV SHAH Key Considerations:
• Does this decision align with our
core values and long-term goals?
et’s dive into a step-by-step pro- • Will it enhance our competitive ad-
cess to help you make informed
Land strategic business decisions. vantage, or will it dilute focus?
• Does it complement our financial,
Step 1: Define the Business Decision & Making major business decisions without proper validation can lead to costly mistakes operational, and strategic roadmap?
Desired Outcome Step 7: Make the Decision & Execute
Before diving into validation, with Confidence
you need absolute clarity on what • Internal Business Metrics Step 4: Financial & Risk Analysis Now that you’ve validated your
decision you’re making and what you • External Expert Insights • Every decision has financial implica- decision, it’s time to take action with
hope to achieve. How About This? If you’re expanding tions. The question is: Are you pre- confidence.
Ask Yourself: to a new market, wouldn’t you want pared for the risks? Execution Blueprint:
• What is the specific decision you are to know your competitors’ strengths Ask Yourself: • Develop a structured action plan
evaluating? (e.g., Should we launch a and weaknesses first? Numbers don’t • What is the expected ROI (Return with clear milestones.
new product? Expand international- lie—use data to back your decisions. on Investment)? • Establish KPIs (Key Performance
ly? Partner with another company?) • What are the potential financial
Indicators) to track progress.
• What is the primary goal of this de- Step 3: Test Feasibility with Small- risks, and can we absorb them? • Implement with agility and adapt-
cision? (Revenue growth, market Scale Experiments • What are the worst-case scenarios, ability to refine as you go.
expansion, cost reduction, etc.) Why take a big leap when you and how do we mitigate them?
What does success look like? can test the waters first? Before com- • Imagine This: You’re investing in a • Pro Tip: Great leaders don’t wait for
the perfect moment. They validate,
• Imagine This: You’re planning to mitting fully, start small and measure new product line. What if it fails? act, and adjust as they go.
launch a new product, hoping to impact before scaling. Can your business sustain the finan-
capture a 10% market share within Can You Imagine? cial hit? Weighing risks against po- Conclusion: Validate Before You Leap
a year. But what if customers aren’t • You invest millions in launching a tential rewards is essential. • Making major business decisions
ready for it? A clear definition of new product, only to realize custom- without proper validation can lead
success ensures you don’t move for- ers don’t need it. A small pilot test Step 5: Seek Expert Validation & to costly mistakes. By following this
ward blindly. could have saved you time, money, Strategic Advice step-by-step validation framework,
and effort. Even the best leaders don’t make
Step 2: Gather Data & Insights Ways to Test Feasibility: decisions alone. They consult trusted you ensure that every decision is da-
Making decisions based on • Pilot Programs: Roll out a limited advisors, industry experts, and men- ta-backed, strategically sound, and
aligned with long-term goals.
assumptions is like driving blind- version of your initiative and mea- tors to validate their choices. • Before making any major business
folded—you’re bound to crash. A sure market response. How About This? move, always validate. The best deci-
data-driven approach ensures objec- • A/B Testing: Compare different ap- • You’re considering a merger. Seek- sions are not just bold—they are in-
tivity and reduces uncertainty. proaches and assess performance. ing advice from someone who has formed, tested, and well-calculated.
Picture This: • Customer Feedback: Gather early been through the process can help • Final Thought: Where others see un-
• You’re about to invest in a new mar- insights from potential users. you avoid costly mistakes. certainty, you see opportunity—be-
ket. But do you truly understand the • Scenario: A software company is Sources of Expert Validation: cause you validate before you leap.
competitive landscape? What if the introducing a new feature. Instead • Business strategists & consultants
market demand isn’t as strong as of rolling it out to all users, they (like Hirav Shah!) The writer is a well known Business
you assumed? test it with a small group first. If it’s • Industry peers, investors, and board Turnaround Specialist, Astro Strategist,
Key Data Sources: well-received, they move forward members and BestSelling Author.
• Market Research confidently. • Structured frameworks (McKinsey [email protected]

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