How to make managerial decisions in a small business

Many entrepreneurs are the sole employee of their small business, or are in charge of a team. That means that the tough decisions may fall on your shoulders. But fret not – decision-making is a management skill that can be honed!

When making decisions, keep these things in mind:

–  Have a clear understanding of the decision
–  Consider the vision and values of your company
–  Evaluate the consequences and outcomes of your decision
–  Brainstorm as many alternatives as you can
–  Evaluate the pros and cons of each of those alternatives
–  Be sure the correct person is making the decision
–  Understand how long you have to make the decision

Once you’ve made your decision, you should re-examine it and the effects that it’s had. Avoid relying solely on outside information, but ask experts for their opinions when it’s necessary. Be realistic when you evaluate alternatives – don’t hear only what you want to hear. Remember the importance of the decision, but don’t focus so much on its significance that you’re too stressed to make an effective assessment.

Practice making managerial decisions with friends, family and other colleagues. No, “My way or the highway” is not effective managerial decision-making for a small business. Learn to evaluate, solicit opinions, contemplate, make decisions and follow up.