For a change, I am going to
write about business and especially entrepreneurship.
I saw a blog by G.Mohan which I saw a
comment by Jeff Bezos, the founder of Amazon.com
“We’ve made many errors. People over-focus on errors of commission. Companies over-emphasize how expensive failure’s going to be. Failure’s not that expensive….The big cost that most companies incur is much harder to notice, and those are errors of omission.”
Here is my critique about it:
Errors of omission occur when the
entrepreneur has a conflict of interest with an opportunity other than the idea
one that he/she has in his/her mind but may exist in reality. In such a
situation the entrepreneur completely ignores these opportunities and loses the
first mover advantage and this could prove to be a big loss in the future.
Errors of commission occur when the entrepreneur is solely looking at the loss
that he/she may incur if the new opportunity is implemented. This is relevant
to the business plan because the business plan is like a road map that the
entrepreneur uses to make his business a success. If the entrepreneur does not
document all of these opportunities and the research based on it in the
“Opportunity Analysis and Research” then neither the financier nor the
entrepreneur will be able to pursue the opportunity in the future. This error
in omission may play a part in higher error in commission in the future.
