In most SMEs, it takes 6 to 12 months from the first clear signal to the owner-CEO acting on it. For the difficult decisions — layoffs, customer loss, pressure from lenders — it can take longer. It's rarely about laziness. The delay usually comes from doubt about the signal, from the belief that the problem will correct itself, from reluctance to admit something isn't working, and from the fact that no one is pushing the owner-CEO to decide.
What a normal sequence looks like
The signal appears in January. The owner-CEO sees it but thinks it's a fluctuation. By April the signal is still there, but now there are two. He explains it as a market problem. By July there are three. He talks briefly with his CFO, but the decision doesn't get made. By October he has to act, because the lender or the customer is now forcing the issue. 9 months.
It isn't an unusual sequence. It's a normal one. That's often the difference between acting early and being forced to act later.
Where the reaction time really comes from
Three things recur in owner-CEOs with long reaction times:
- Doubt about the signal. You wait "one more month" to see if the number corrects itself.
- The belief that time fixes the problem. You think you're buying time by waiting. In practice the options often disappear while you wait.
- No one challenging you. The board only sees what you show them. The advisor waits for you to reach out. The lender only speaks up when it's already too late.
Where you should sit
Under 3 months is fast. 3 to 6 months is normal for an SME. 6 to 12 months is delayed — there's almost certainly a concrete cost you can quantify. Over 12 months is critically delayed — and the next difficult decision usually comes quickly, while the options are shrinking.
The important thing isn't the individual number. It's the trend. If you've become faster over the last two years, you're probably moving in the right direction. If you've become slower, something else in the business is usually starting to weigh decisions down.