
Dilemma
In the previous step (Reaction), we showed a character’s humanity by exploring their unconscious and emotional reactions. Once the emotion shock has worn off, the brain kicks in, allowing the character to consciously think about their situation.
Make things Difficult
Now’s the time for your character to take stock of what’s happened and to figure out their next steps. As writers, we don’t want to make it easy for our characters to decide what to do next. Here’s where we complicate their situation by giving them a dilemma.
Ideally, the dilemma has two (or more!) choices where each option is equally unfavorable. Have them consider the benefits and consequences of each option. What if they were to select each option? Have your character (and by extension, your reader) explore the consequences and the stakes.
A dilemma allows you to show the reader what’s important to the character. What are their values and priorities? Are the a methodical thinker? Do they suffer analysis paralysis? How do their emotions factor into their decision-making?

Example

For example, consider Alex – a student who has an exam Thursday morning. Alex’s best friend, Bruce has invited him to his birthday party Wednesday night. If Alex is an A-student, this situation isn’t much of a dilemma, as he will predictably prioritize his marks over fun with his friend. Let’s balance the decision to make his decision more difficult. Suppose Bruce has tickets to a Wednesday night concert by Alex’s favorite band – a band that rarely plays in their city. If Alex doesn’t attend the concert now, he might not get to see them for a long time, if ever. However, he won’t have time to study for his exam, and he’ll be tired the next day. Let’s increase the stakes of the exam. Let’s make it a final exam, worth a large percentage of the class’s mark. The exam is also scheduled first thing in the morning, when Alex will be extra tired.
Why Torment our Characters?
Try to give every option equally bad consequences.
Showing their thought processes gives your readers insight into your character’s values and problem solving approach. Are they methodical thinker? Are they a solo problem solver or do they seek advice from others?
Sooner or later, the character needs to move forward from their dilemma, which leads into the last component of the scene, Decision.
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