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Startup Skills -- Making Decisions

The process of planning and launching a new business is essentially a series of hundreds, if not thousands, of small decisions. The culmination of all these choices will be the reason your startup succeeds or fails, grows into a sprawling company or remains a solo operation. For many first-time entrepreneurs, the weight of having to make the right choice at every turn can be overwhelming and stressful, but necessary all the same.

Though successful entrepreneurship encompasses a number of critical skills, good decision-making is certainly among the top few. Like any other skill, it can be developed and honed over time and experience. Good decision-making simply requires doing your homework and applying a basic strategy. While working through the process step-by-step seems tedious, especially for smaller decisions, the trick is to make it a habit. This way, every decision that you make is logical and informed, and keeps your startup on track.

The basic decision-making (or problem-solving) process includes five steps:

1. Identify the problem

As specifically as possible, determine where you are now versus where you need to be.

2. Analyze the problem

Learn as much as you can about the alternative solutions to the issue. Try to look at it from different perspectives and brainstorm creative options.

3. Formulate possible solutions

Eliminate the unfeasible and narrow your options down to those that bring you closest to the stated goal. Look for innovative solutions and question all "customary" or "standard" solutions...one key to entrepreneurship is the incorporation of innovative processes, big and small.

4. Evaluate the options

Weigh each possible solution against the others, consider the advantages and disadvantages of each in terms of short-term and long-term outcomes.

5. Make the decision

The final choice should be balanced in terms of reaching the stated goal, the risk involved, and the practicality of implementation and enforcement.

Following these steps, even for minor decisions, can help build the habit of doing your homework and weighing the options before deciding on a final answer. The more you follow the process, the faster and easier it will become.

For problems involving topics that you are unfamiliar with, take the time to find out the various options and perspectives for yourself. Avoid relying only on the advice of another...even a professional. If your advisor can't explain to you what the alternatives are or why their recommendation is best, do your own homework. Also, be aware that much of the free information on the internet is worth what you pay for it...so be sure to consult different sources when building your knowledge base. Conflicting ideas and opinions are good -- they allow you to draw your own conclusions based on an even broader base of data.

For bigger decisions, it may be necessary to schedule time for conducting research and mulling over the information. If you get stuck, consider talking over the issue with a key employee, networking contact, or other trusted advisor. Spend some time on difficult issues. Take in as much data as possible, then give it time to percolate in your brain. Often, a bit of distance from a problem (especially a stressful one) can provide a fresh perspective.

Be willing to walk away from a decision if no good solution presents itself. Many times, knee-jerk decisions or settling for less-than-ideal options have the opposite of the desired effect and actually cause bigger problems down the road. Once you have reached a considered, justifiable answer to your problem, commit to it. Don't waste time second-guessing yourself, there will be plenty of other decisions to spend your limited time dealing with!

About the Author

LaunchX.com is dedicated to training entrepreneurs to turn their good ideas into great companies. The LaunchX System provides step-by-step education in the mindset and skill set entrepreneurs need to succeed. Our program includes intensive seminar training, key business software, and specialized workbooks that teach you the fundamental skills you need to achieve your financial and worklife goals through entrepreneurship. Register today for our introductory course and see what LaunchX can do for you!