Tips for Making Better Business Decisions

As a business owner, you are faced with many opportunities and decisions that can
affect your business’ strategic direction. That’s always been true – but right now, with
rising costs, supply chain uncertainty, and constant policy shifts, the stakes feel higher
and the variables keep changing. It can be difficult to make the right call when you’re
emotionally invested and operating in an unpredictable environment. That’s why having
a sound decision-making process matters more than ever.

Take Some Time

As entrepreneurs, we often move quickly. And in today’s environment, speed matters.
But there’s a difference between making timely decisions and making knee-jerk ones.
Reactive decisions made under pressure, without enough information, can be just as
costly as moving too slowly. Before diving in, take a moment to step back and think
through the different scenarios and outcomes for your business. Even a short pause to
assess the situation can save you from a costly mistake.

Stay Informed and Think Forward

As a business owner, you’re already paying attention to what’s happening. The challenge right now isn’t finding information – it’s making sense of it in the context of your business. Stay tuned in to developments that could affect your industry, your suppliers, your customers, and your costs. And when you can, try to look ahead. Talk to your suppliers, listen to your customers, and stay connected to your industry. The signals are usually there before the impact hits.

Revisit Your Business Model

Before making a major decision, put what you’re actually doing right now down on paper. Use a tool like the Business Model Canvas to map out your current customers, revenue streams, cost structure, key partners, and more. Then, use what you’ve learned to identify how today’s economic conditions are affecting each area. Which suppliers are at risk? Which customer segments are most vulnerable? Where are your costs most exposed? Seeing your business as a whole system helps you identify where changes may be needed and make decisions with the full picture in mind.

Look at the Numbers

Most decisions will have an impact on your finances, both immediately and down the road. It’s important to look at the financial impact of the decisions you’re considering. Analyze the short-term costs and cash flow implications of the decision and also look at the long-term impact on your financial forecast. The numbers will help you identify if the potential outcome is worth the time, money, and energy you will have to put in.

Ask for Advice

It’s helpful to have other perspectives. Talking it over with a fellow business owner or trusted advisor can help you see your blind spots and give you more insight into how the decision might affect your business. Peer networks and community-based business support are particularly valuable right now – other owners are navigating the same challenges, and their experience can save you time and money.

Consider Timing

Consider whether your decision needs an outright yes or no right now. The opportunity may be a good fit for your business, but you may not have the time, staffing, financing, or infrastructure to follow through on it at this moment. In an environment where conditions, such as costs, policies, supply chains, are still shifting, sometimes the most strategic move is to pause, monitor, and revisit when the picture is clearer.

Commit to It

If you’ve taken the time to go through a sound decision-making process, trust your decision. Give yourself enough time to see how it plays out, monitor your progress, and then determine if you need to re-evaluate. In uncertain times, second-guessing yourself at every turn can be just as costly as making the wrong call in the first place.