How to Make Better Business Decisions

Good business solutions are a valuable skill that can be studied and applied throughout your life. On the other hand, bad business decisions can affect you, your employees and even your business forever. In fact, bad business solutions are one of the main reasons for the company’s overall failure. Bad decisions are often made when we become emotionally involved in a situation, or we simply do not have the patience necessary to make a reasonable decision. Good business solutions require that you follow these basic steps; determine the right method, know and understand your options, collect information and understand the consequences. If you learn to follow these steps always when you are working in the decision-making process, you will probably become an outstanding leader throughout your life.

Step # 1 – Determination of the correct method. Four general methods are used in the decision-making process; command, consult, vote and consensus. Each of them is associated with an increase in the degree of participation of participants and an increase in the level of obligations. However, greater participation of participants also reduces the effectiveness of decision-making. If you take the time to learn and understand these four methods of decision-making and apply them accordingly, you will be on your way to becoming a very good decision-maker.

Team: the responsible always makes the final decision, and the decision-making process is often done very quickly, without any special thoughts. This process involves only the responsible person, leaving all others to decide whether they like it or not. This is a good way to decide if others are not affected by your choice, and the potential consequences are insignificant.

Consult: the decision maker collects the information and opinions of others to help him/her make the final decision. This is due to a large number of people and resources, but the final decision is still taken by the person in charge. This is a more thoughtful and calculated decision-making process, and this is a great way to decide if others are not seriously affected. Remember that others may disagree with your decision, so make sure you know when to use this process.

Voting: group members express their opinion by voting of their choice to determine the final decision based on the popular choice. This is a great way to gather everyone’s opinion to help you make a quick decision that satisfies most of the group members. However, this probably will not satisfy everyone, therefore, if you are looking for a general group agreement before making a final decision; Consensus is the right choice for you.

Consensus: everyone is involved and discussing options until everyone agrees to choose or cooperate in the choice. The final decision is not accepted by all members of the group agree to a general choice. This is a great way to achieve business cohesion and group commitment, but it is usually very inefficient and can lead to delays in the decision-making process.

Now that you have determined which decision-making process is right for your situation, go to step 2.

Step # 2 – Knowing and understanding your possibilities: you can create a simple list of options with a little research and brainstorming. This process will help you expand your thinking and open up a whole world of options. After you have your list, create a list of pros and cons alongside each option to help you narrow down the choices.

Step # 3 – Collecting information. Investigating your options and collecting information is one of the most important steps in making reasonable business decisions. More effective business solutions can often arise with the availability of accurate information and business statistics. If you can get instant sales, inventory, financial, employees and other important business records and records related to your company, you will have a great advantage in making good business decisions. If you can not get accurate business reports that will help you in the decision-making process, we recommend that you try for free a business management package that can greatly help you become more effective in managing your business and provide you with the features necessary to pull out valuable reports on decision-making.

Step # 4. Satisfy the consequences: every decision has a good or bad effect, so it is important to understand the potential outcome of your decisions. You can use the list of pros and cons in step 2 to help you prepare for possible outcomes. Understanding the possible outcomes of your decisions can help you be more prepared to deal with any future situation that may arise.

Now that you have the tools that will help you start making more reasonable business decisions, believe in yourself and get out and do it. Anyone can learn to accept.