Nick Roberts
 

Being in business entails making endless decisions, some minor, and others which could have catastrophic consequences if the wrong decision is made. In my business mentoring role I find it's a very common situation as the typical small business owner is often on his or her own when it comes to managing their business. So what can you do to make those tricky decisions easier?

• Don't make decisions off the cuff, mull things over beforehand. I invariably find that it's never as bad as I first thought and I nearly always think of a better way to do things after a while.
  
• Get the facts and as much information as possible beforehand. Guessing or working in the dark just increases the chances of getting it wrong yet this is something I find frequently.
  
• Talk it over with someone else. You don't have to be influenced by their view but more often than not, it helps having an objective view. A business mentor or coach is good.
  
• Don't avoid taking a risk if necessary, but avoid excessive risks where the outcome if it goes wrong would lead to disaster.
• Gut feel can be a great guide as to what to do, even if you're being tempted by cold logic!
  
• There are a number of financial tools available which will show the effect of different choices. For example, what happens to your overall gross profit if you cut prices by 10% or improve your AR days by 10.

What if you still get it wrong? Well few bad decisions will change your life and in addition, remember one of my favourite quotes "If you aren't making any mistakes, it's a sure sign you're playing it too safe" by John Maxwell. If that doesn't cheer you up, do a Google search on bad business decisions - my favourite one is the record label Decca that turned down the Beatles!

If you have any tax or business queries of any kind telephone 0800 ASK NICK, e-mail nick@abac.co.nz or use "Contact Us" on www.abac.co.nz. The information in this article is of a general nature and should not be relied upon as a substitute for specific advice.