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Making Decisions with Confidence

Friday, February 01, 2013   By Mike Reddy

 



Our decisions shape our lives, our business, and our past, present and future. Being a confident decision maker may seem challenging at times but essentially it is one of the most important ingredients in the recipe for a successful business.

Procrastination, distraction and general malaise are common tools employed to put off making a decision. All of which can mean lost opportunity and even disaster.

Bust out of the decision-making rut - learning to make confident decisions will ignite leadership and promote motivation throughout your business.

Creating a simple decision making model that can be followed in all situations will help you gain confidence and stop shying away from those important 'yes or no' moments.

  1. Start by asking which solution provides the best financial outlook for the business? The end game is always profit - a business can't exist without it.
  2. Ask yourself which solution will suit your customers best?

Evaluate the answers to these first two questions and only consider solutions that answer both positively.

Move on to appraise each solution and how they support the business' vision, core values and goals.

Do one of these solutions best support personal goals and objectives? As a business owner it is important to consider your role and how it will be affected by the decision.

Who will be affected by the solution? How many people? Who will be required to put in the most time and what will this solution cost?

Other things to consider: is this decision operational or strategic?

Strategic decisions involve the business' identity and the direction it is moving in. They are long term decisions, difficult and expensive to change and demand a great deal of planning.

Operational decisions are about implementing the strategies – What people, products, marketing, financial ratios and systems will be impacted?

Emotions rarely have a place in effective business decision-making. Make a sincere effort to remove them from the process. It's a good reason to involve an independent professional who has your interests at heart.

Get things down on paper in the form of pro's/con's lists, charts, graphs-whatever works for you.

Remember, no system is foolproof – mistakes are just a part of doing business. Your role is to minimise them.


Mike Reddy is a Chartered Accountant, business coach and advisor helping businesses in Sydney, Melbourne, Brisbane and Gold Coast to easily increase their profits and cash flow. He is currently President of the North Sydney Chamber of Commerce, a Regional Councillor for Sydney North East and a member of the Institute of Chartered Accountants Sydney leadership team. As well as advising businesses, Mike presents business development seminars and webinars and is regularly contacted by the media to comment on small business matters. You can connect with him on Facebook, Twitter and Google+.