Fire your Accountant & Hire a Partner

10 steps to better decision making in your small business.

Posted on 28 June 2010

Every day you make decisions; small ones big ones, important ones, casual ones. They don’t all require careful thoughts, planning or process.  When a big one comes up, how will you handle it? Follow these steps to ensure your small business success.

1. Identify the decision that needs to be made.  Many times the REAL decision is covered up by distractions, false decision, and “red herrings”. When you know what the real issue is, you can focus, cut your time and get to results faster.
2. Break it down. No I don’t mean dance…. I mean, break the problem down into its components.  The critical issues that can be resolved as opposed to the issues that you don’t control.  Focus on what you can DO, then do it!
3. Identify what you know and what you don’t.  If you need more information get it.  Don’t guess use your resources and hone in on what is essential to know to make the right decision. Many people are afraid to admit they don’t know, that is pride.  Pride cannot make a decision for you, facts and analysis can!
4. Know who to get advice from. Many will go to friends, family and others who don’t understand your business or your problem.  Get a good team, lawyers, accountants, financial advisers, specialty consultants, these are your source for solid advice. Recognize when you need professional advice and make sure you get it. Who’s on your team?
5. Identify unpredictable results. In other words, do you know that you are guessing? Or using your imagination to get the answer? Don’t! working with facts helps you make a confident decision. You will sleep better knowing facts.
   

   You can make the right decision.

6. Trust your gut instinct. What?  Didn’t I just say focus on the facts.  Don’t discount your emotions, you have an instinct that got you into business, that create your success and will continue to drive your growth. You can trust your emotional content to a certain extent.  You will need this emotion to overcome problems that come up you didn’t see.
7. Focus on your long term goals. Does this decision support your long term plans? If not ask yourself, with this short term gain benefit me long term.  Slow down……never sacrifice your long term plans for short term gains.
8. Don’t make the decision until you have to.  Know your break point, gather information until you are at the moment of creating the best results.  Sometimes procrastination can be your friend, if you are in control of it.
9. Know your fears. What scares you, is it real? Are you just projecting past failure or past hurt into the future.  Don’t let the past dictate your future. Decide this issue by itself, not based on what happened yesterday.
10. Have a plan “B”, always have a back door that will allow you to get the next best thing. Protect your investment of time, mind and money. Don’t feel that a plan B is weak or fear motivated, it’s for you to feel confident that you can’t loose.  So go and get it!

Your good decision making is important to all your stakeholders; employees, family, vendors, and customers all count on you.  Take your time, practice the 10 steps and find your small business success.

On your team,

Mark