This Common Decision-Making Trap Is Holding Your Business Back. Here's How to Escape. Defaulting to the best of two options is a binary trap. Improve business outcomes by substituting either/or thinking with "multiple-choice thinking."

Entrepreneurs are faced with multiple decisions every day — sometimes dozens before lunch. Too often, the people asking for them think they're doing you a favor by framing them as "either/or."

One of my employees and I even joke about it. She'll ask, "Do you want to go with X or Y?" And I always reply, "There are more options than that" or "Why not both?"

This lighthearted exchange highlights how to improve your outcomes by substituting binary thinking with what I call "multiple-choice thinking."

Related: 7 Tips for Making Quality Business Decisions

The trap of limiting your choices 

We live in a world that assumes people want simple choices: Coke or Pepsi, PC or Mac, Republican or Democrat. And who can blame us for wanting these limited options?

The average U.S. consumer is faced with making 35,000 decisions a day.  In theory, limiting options should make things simpler. But in business, defaulting to two options is a "binary trap."

Either/or thinking is convenient but rarely leads to the best solution.  If we limit ourselves to two options, we miss out on creative solutions and opportunities for growth.  

The power of "and" and "what else?" 

Business decisions rarely include only true-or-false options. They're more like multiple-choice questions. So, the next time you face an important decision, reframe it like this:

What choice will get you the outcome you want?

A. One choice

B. Another choice

C. Both A and B (for example, your next car may not use only gas or electric; it might be a hybrid)

D. Other, please specify

That "please specify" in answer D is crucial. You'll want to come up with one more option to consider. It can even be something "outside the box." Of course, you don't want to drown in options — decision paralysis is real, especially for analytical thinkers. 

Note well: "Other, please specify" does not mean "None of the above." The world is moving faster than ever, so standing still is rarely a good business option. The status quo is usually someone else's preference, but it's not a solution to your problem.

Beyond making the best decisions, multiple-choice thinking reduces the risk of regret (or buyer's remorse). If it's a team decision, greater buy-in and ownership are  other positive outcomes.

Related: How to Make Powerful Business Decisions Without Guilt, Shame or Regret

Real-world examples 

Entrepreneurs can apply this mindset everywhere:

• Suppliers: Don't wait for a supply chain problem to put your business into an emergency situation. Beyond choosing between local or overseas suppliers, consider other options. Co-ops, direct sourcing and digital marketplaces can be viable solutions.

• Marketing: The next time a vendor approaches, don't settle for what they're trying to sell you. Ask about how partnerships, events or referral programs will generate more exposure for your business. Consider making a counterproposal that works better for you.

• Workplace: The debate over remote versus in-office work is a classic binary trap. You can have a flexible mix of both based on everyone's needs. You can also require the people who need to collaborate to work in an office setting and allow the other staffers to work remotely.

My most recent personal experience with multiple-choice thinking came up when we were interviewing candidates for an open position in the company. The team presented me with two finalists.

One candidate looked great on paper. Their psychometric assessment results indicated they would be a good fit with their potential manager and my company. But during the interview, it became clear that this candidate lacked the critical and specific hands-on experience we needed.

The other finalist appeared to have the experience we needed, but their fit with our organization wasn't quite right.

At this point, some business owners would hire the candidate with the best fit or make an offer to the experienced candidate.

We couldn't decide between Answer A and Answer B. Both candidates wanted full-time work with benefits, and we didn't have the budget to hire both, so that ruled out Answer C. I've learned the hard way to never settle when making a hiring decision, so I looked for an Answer D.

First, we considered other options: calling in more candidates, using contractors, offering internships or using AI to automate the job. Ultimately, we chose a third candidate that we overlooked initially. We rewrote the job description to fit their strengths and to also resolve another problem we had. That turned out to be our best choice after all. 

Related: How to Make Better Decisions to Move Your Business Forward

Actionable tips for business owners 

Here's how to put multiple-choice thinking to work for you:

• Challenge assumptions: If you catch yourself thinking in binaries, ask, "Why are these the only options?"

• Question urgency: When presented with two choices, take the time to brainstorm at least one more. It's better to make the best decision than a fast one. 

• Encourage team input: Ask your team, "What could we do instead?" You'll be surprised at the ideas that surface. 

• Test small: If a new idea feels risky, pilot it on a small scale before committing. 

Your mission is to make the best decision with the information available at the time and move on. Once the decision has been made, the time for debate is over. Everyone must be on board and execute.

The next time someone asks, "Do you want to go with this or that?" don't take the bait. There's almost always a third and fourth option. In business, the best path forward is often the one nobody's mentioned yet.