What Goes into a Good Business Decision?


Running a business successfully means becoming a master of the art of good decisions. Every day brings with it fresh challenges and it ultimately falls to you to decide how those challenges are met. A bad decision wastes the resources you have available (whether it’s money or simply the time available to the team you have working for you) and doesn’t produce the result you need. Good decisions bring you the results (landing a big client, fulfilling a client, launching a new product) as a result of the effort you’ve put in. The very best decisions get you the best possible outcomes with the minimum spend of resources.

Maximising the outcome while minimising your spend is the path towards long term success for your business, so you really need to cultivate the art of good decision making. Fortunately, that’s what we’re looking at today, to help you understand the ingredients that go into a good decision for your business.

Data

You need to be gathering data constantly in order to provide a fact-based foundation for your decisions. If you can’t quantify the capacity of your business, then you can’t say with confidence whether you’re able to take on more work. A big contract might be more work than you have worker-hours to complete, leading to delays across the board, or it could be perfectly fit the time you have available. Without data you can’t know.

Similarly, without data on your market, you can’t know with any certainty whether it has the capacity and desire for what you have to offer. Work with a market research agency gives you access to important tools like Brand Tracking surveys and Net Promoter Score assessment tells you how strong your brand is, and how likely it is people are to spend their money with you.

Feedback

Before you act on a plan it’s important to get feedback. If you’re committing to deliver something for a client without listening to the people who are going to be doing the hands-on work of creating it, then you could be setting yourself up for a disappointment in the near future, and disappointment can fatally undermine a business. Too many broken promises or delays on delivery can mean no one wants to do business with you.

Make sure you listen actively and carefully, and show you’re willing to act based on the insights your experts can deliver. This gives your employees the confidence to be honest with you – you might not like everything you hear, but building your decisions on a foundation of truth is more important.

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