When a football team trades a star quarterback who has put in seventeen years as a workhorse for a team or a business decides to settle a case rather than endure the cost of a trial in which they will be victorious, those decisions are based on what will be good for the business. Business decisions are difficult because in many instances they violate what might be viewed as the current standard of morals. Some one who has been loyal to you should be expect some degree of loyalty back. If your cause is true why should you give money (x) to some one just so you minimize the net cost of legal action to the business (y). In a lawsuit even if you win, you will need to pay for your attorneys. The people suing you generally have minimal assets, you will not be able to recover the costs of litigation from them.
So the business decision is made that (y) will cost the business more than (x) so we do (x). At the end of the business day #(1) Revenue – business expenses – (x) = net profit or #(2) Revenue – business expenses – (y) = net profit. The net profit of equation #1 is higher. Net Profit fuels the growth and continual existence of the business, not winning.
A football team is trying to build for the future however the past is tugging strongly. You can respect the past and sidetrack the future or make the tough and unpopular business decisions.
These are horrific gut wrenching decisions, however they are decisions you as an entrepreneur signed up for. Quoting Mario Puzo “it is not personal, it is business”
