Making good decisions is the key to success in any business. It’s the ultimate transferrable skill, to be able to look at a variety of options and, with clarity, pick the one that creates the most benefit for the smallest expenditure of resources. Sometimes it might not be apparent which one does that: a false economy is a tempting fallacy, and having the insight to identify which savings offer a short term benefit that turns to a toxic detriment in the long term is part of the skills that go into being a good decision maker.
Today we’re taking a look at the ingredients that go into making a good business decision, so you can cultivate them and drive your own business to success.
Background Data Gathering
It’s a good instinct to dive into research when you’re faced with a decision, but better is the instinct to start that research from day one and run it in the background, so when you need data, you’ve got months or years worth of trends ready and waiting.
Working with market research companies like Attest means you can keep research on consumers and their behaviour going to match your needs, without spending too many of your resources. If there’s a specific question you need answering, you can also get a deeper dive and a more intense strategy in place in the short term.
Things move fast in the world of business and the ability to make good decisions quickly is an advantage whatever your industry. Being able to get moving fast could mean winning over a client rather than losing them to a competitor, or simply adapting to changing circumstances faster. Building firms are competing within a crowded niche, for example, and if a form of government funding goes away, like a subsidy for environmentally responsible or energy efficient builds, firms that have built an identity around it will be in trouble. The first firms who can adapt, find new funding; a different model; or simply clients who have the money to compensate them will thrive while the others are shuttered.
Speed isn’t the be all and end all though. A bad decision made quickly is still a fast decision, so make sure you’re balancing speed against reality checks and data to weed out poor ideas.
The most important thing to do is listen to the people around you. You’re not the only person with insights, and indeed there’s no way for a single person to know everything possible to make a flawless decision in every situation. So pursue a diverse hiring policy to make sure you have a broad range of experience and expertise and listen when people talk to make the best decisions possible, and ensure high morale!