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  • Writer's pictureRoshni Baronia

How to take better business decisions

Updated: Dec 15, 2023

Learn how to make better business decisions with this insightful blog post. Discover strategies to evaluate impact, assess risk, and more.


how to take better business decisions

Haven’t we all heard our ancestors sayMoney makes more money

But in spite of this being an altruistic truth, we entrepreneurs at times struggle to take the right business decision regarding investments and expenses. About where to put our money. 

For a moment, go back in time to recall what was the first big investment you did in your business? 

I remember mine and it was scary! 

Why so…because it was a costly coaching program that I bought. But once committed to it, I made sure I leveraged all the tools and strategies it gave. As an outcome of the 8 month long program, I was able to create results and revenue that made that decision a good one. 


                            { Your business is a reflection of your mindset }

Whether it is investments, which are done in areas that may or may not generate revenue for you directly but they certainly help you either save time, increase skills, garner intangible benefits, make you future ready, enhance productivity or they are expenses which are business requirements that help you produce or process the products or services you deliver, we do have to make a decision about putting the money in it or not. 


So we have to find a way that makes taking business decisions easier. But before we look at the solutions, I encourage you to take a moment to tap into the reasons why you take time or avoid or procrastinate taking that investment decision. A few I am sharing here.

Avoiding confrontation:

This is a personal observation I have had over years of working with women entrepreneurs. They tend to avoid confrontation by not showing up for a meeting or not making time for the seminar that they actually wanted to attend or postponing commiting to the opportunity which they know will do good for their business. This shying away is subconsciously influenced by past experiences which are now standing in the way as a reason for the current decision also to act out in a similar fashion. But my friend, as it said’ ‘Until you open the opportunity door, you do not know what is behind it.’


Fear of success:

This is the most contradictory yet prevalent reason for postponing decision making. We are conditioned to believe that success needs hard work. And if something or someone makes it easier, we feel it’s not for real. The fear also triggers your unpreparedness for the change success brings along. What if I get that big order, how will I execute it. What if that international client likes my designs, I do not have the team to deliver it within the time frame and more such reasons. It stalls you from taking action even though success is the most desirable thing for many. 


Uncertainty:

This is the most valid reason of all where you are not cent percent sure about the outcomes or results that the investment can create for you. It also tends to fill you with a certain level of anxiety and mistrust which in turn hugely influences the outcomes. 

As a business owner, you are required to make decisions of every kind, every day. And when put up against the above mentioned factors that affect decision making, make use of these solutions: 

Evaluate the impact:

Identify the shift that the investment can bring for you, both in short and long term whether it is saving of time, more skills, increased productivity, better future, makes money or something else. 


Assess the risk:

Count your risks and draw up a mitigation plan as well. Take a stock of the factors that might influence the success of investment and jot down the counters for them.  


Determine the worst case scenario:

Think about the maximum you might lose and answer for yourself if from that worst case you still will be able to build yourself up and are you willing to course correct if things don’t work out the way you wanted. 


Know your objectives:

Ask yourself what are the key outcomes and results you are looking for, the baseline which if met you can say that the particular decision worked out well for you. 


Learn more:

Believe that you have every damn right to inquire and find out about each bit of information regarding that investment. Gather all the facts and features that you need to have to make an informed decision. 

A solution for business challenges which I have often seen entrepreneurs undertake is asking friends and family. While it is a good practice for opinion formation or knowledge exchange, decision making is an individual exercise and is best done without the influence of people with half knowledge. Many a time people ask too many people about the same challenge having too many viewpoints ending up with yet another problem of choosing the right solution. The best resolve for this is to always solicit advice from subject matter experts and experience holders.



So I hope this gets you thinking and the next time you find yourself at crossroads of whether or not to make that investment or expense, weigh all the options and take an informed decision which gives you confidence not jitters. And remember many a times it is not about whether or not you can afford it but more about how you make sure to reap the full benefits, look into what will it take to make this vision, this goal you have for your business a reality and if this particular purchase helps you do that, how can you make it happen.


It no doubt takes a level of commitment and courage but if you are fully focused on growing your business, you will make it happen.


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