Without a doubt, one of the most powerful acts a leader makes is making decisions. Whether an individual is a good leader or a poor one is completely defined by the decisions they make – or fail to make. So, how can you be sure you’re making the right decisions for your business?
Decision making is not just about the big problems a leader faces; the seemingly small decisions made every day often have the biggest, long-term impact. For example, if you need fast business funding, the financing source you choose will have a big impact on the growth of your business. Is a bank loan really more efficient? Or should you get a merchant cash advance?
What is your decision-making process like? It will be influenced my many factors, including your style, your mindset, the complexity of the situation, the size of your business, etc. Some people go off of their “gut” feeling, while others are so worried they fail to make any decisions at all. Some procrastinate.
As described by an article in the Graziadio Business Review at Pepperdine University, “Great leaders understand how to balance emotion with reason and make decisions that positively impact themselves, their employees, their customers and stakeholders, and their organizations.”
The 7-Step Decision-Making Process
Developing your leadership skills is so important for personal and business growth. The greatest leaders and entrepreneurs confirm this,repeatedly emphasizing how critical continuing to learn is to business success. Consider the following seven-step process for effective decision making presented by the University of Massachusetts and Dartmouth:
- Identify the decision
- Gather information
- Identify alternatives
- Weigh the evidence
- Choose among alternatives
- Take action
- Review your decision
The most important step of all is the very last one: reviewing your decision. Ask yourself, if you had made a different decision, would there have been a better outcome? Did you choose the right strategy?Reviewing the situation and determining whether the decision you made was the correct one is how you really learn and grow.
Down the road, you might find the process becomes a bit easier. Making big decisions will always be hard, but improving your decision making will help you simplify – and reduce the stress – of the process. Meanwhile, your strength in leadership will encourage and inspire your team. You will be viewed as a better leader and see better results overall.
Author Bio: As the FAM account executive, Michael Hollis has funded millions by using business funding get a merchant cash advancesolutions. His experience and extensive knowledge of the industry has made him financeexpert at First American Merchant.