Sound decision-making is a critical ingredient for success in small business and it’s an ability and skill that every entrepreneur must possess.
When it comes to small business, owners will face important decisions that may impact the future of the company on a daily basis - and they cannot afford to make poor choices.
As a small business owner, this may seem stressful, but keep the following tips in mind and you'll find yourself making wiser decisions and on the path toward long-term success.
Business Decision Process
Identify the problem. Sometimes it is difficult to identify the real decision to be made. Identify what the problem is and why it is a problem. If an employee is consistently late for work, you may think that the real decision is whether or not to fire her or him. In fact, the real decision is whether or not that employee is actually a valuable asset to the business and worth working with to change the behaviour.
Gather facts and seek knowledge. Before making a decision, gather as many facts as possible. Seek reliable advice from those people who you know to make sound decisions and who have enough knowledge on the subject to offer good advice.
Make a plan and set goals. Successful businesses all have a plan or road map for their business. Consider all of the information you have gathered and then extend it into the decision making process. Decisions are made with education, planning and commitment. But make sure your decisions are consistent with your goals. Goal setting can help you focus your priorities and reduce the inconsistencies that may hinder you from achieving your goals.
Take action. Select the best solution to the problem but be certain to understand clearly why it is best. Act decisively and with confidence once the decision has been made. You should have the confidence to know that you have made the best possible decision based on the facts available.
Evaluate, obtain feedback and monitor. Once you have taken action to solve a problem, management must evaluate its effectiveness. Evaluation standards must be determined, feedback channels developed, and monitoring performed. The goal is to answer the bottom line question: “Has the problem been solved?” Always be prepared to evaluate your decisions and honestly admit to yourself if they were sound and if not, how they could have been improved.
Keep in mind, not all of your decisions will be the right ones. Decision making is a skill like any other, and practice makes perfect. Whether you’re a small business owner or the executive of a major corporation, the general approach to solving problems is the same. Consider the steps above next time you are faced with a difficult decision about your business.
At Randstad Canada, we work with businesses both large and small. While these companies may differ in size, they all share one common trait: the success of their business hinges on their ability to make sound decisions. Contact us today. Allow us to help you source the talent you need to make your business succeed, click here for more information.