Seven Decision-Making Principles Leading us to Profitability
Guiding Principles of a business are necessary (honesty, integrity, customer service, etc.), but there is another set of principles that help the Business Owner in particular: decision-making principles.
How we make decisions effects everything we do. Problem – we make decisions subjectively, even when we think we’re being objective. All the research shows this – even at the major company level – we even buy subjectively.
As a result, we react badly to shiny objects, short-term victories and defeats, and strategic planning. So the question becomes, do you guide your biz or does it rule you? Who’s really in charge?
Want to make more money and stop recovering from bad decisions? Get some simple decision-making principles on which you run your business.
Like rails that guide a train, your decision-making principles are a core strategy to having a business that knows where it is going and how it is going to get there.
Here’s my seven decision-making principles. What are yours?
The 7 Decision-Making Principles of TeamNimbusWest Crankset Group:
- Business Maturity Date – Know Where I’m going & when I want to be there. (Seriously, you plan your vacation destination and time to be there, why in the world don’t you plan the destination and time to be there for your business. Which one is more important? Duh…)
- Make more money in less time. – Why do what others can and will do, when there’s so much to be done that others can’t or won’t do? Yield Per Hour. Distributive Management. Your NOT saving money by doing things below your pay grade. If you want to make $200 per hour, every time you do a $20 per hour job, you just lost $180.
- Focus on my lifetime goals, not just on growing my business – A BHAG (big, hairy, audacious goal) will keep us going, but “grow the business” is a lifeless idea. So is retirement. Get a reason to have a business, then watch how much more money you make, and in less time.
- Get off the treadmill, own the business instead of the business owning me. – The purpose of our business is to create a lifestyle for ourselves and our family. Stop making money, stop making a living, and start building a business that makes money while you’re on vacation.
- Work ON my business, not just IN it. Highest and best use of my time. – The key to growth – perfecting as we go by strategic planning, not just production. Know where you’re going, and regularly adjust. I revisit my Strategic Plan every Monday. Keep steering all the time.
- Make decisions on where I want to be, not where I am. – Clarity of Purpose leads to Hope which leads to Risk. Know where you’re going (clarity), which will give you something to believe in (Hope), which will allow you to risk moving forward. Take good risks to grow.
- Bad plans carried out violently many times yield good results. Do something. Stop planning. Implement now and perfect as you go. Speed of Execution rules. It’s a both/and thing. Move NOW (stop thinking), then as soon as you start moving, start perfecting. If you just move, you’re going to get clobbered. If you just perfect, you’ll never start moving. Implement now, perfect as you go.
What are the decision-making principles of your business?
You’ve got decision-making principles that are running the show. You might as well write them down and see if you agree with who/what is actually in charge. If not, change them and take control of your business future.
Learn objectivity in decision-making processes. Know where you’re going, delegate, make decisions based on your strategic plan, and not based on where you are right now. And stop thinking about it so long. It’s not how good the plan is, but how committed you are to the bad (incomplete) plan you have. And how good you make decisions as you go.