You know the feeling. You sit down to make a big decision and somehow 20 or so other things get in the way. The phone rings. HR knocks on the door. And that familiar ‘ping’ from your email keeps dragging your attention away from what you need to be doing.
The frustrating thing is that we all know that focus for your business, is essential for a business to succeed. But we are also very aware of how easy it is for us business owners to find ourselves distracted by all of the other ‘things’.
Making decisions with focus helps us to pinpoint what really matters and ultimately make better choices, but sometimes it’s easier said than done.
Before making a major move, take some time out and ask yourself: What am I really trying to achieve here? The clearer the goal, the easier it becomes to evaluate your options.
Hitting That Sweet Spot
Your business has its own strengths and challenges; they all do. Finding your focus ‘sweet spot’ will help you to clearly identify where you are, where you want to go and how you’re going to get there.
Minimise your distractions (that’s right, turn your phone to DND, and turn off that email!), have clear goals and know what they are (write them down and have them in front of you if you need), and concentrate on what really matters as a starting point.
The evidence backs this up. Research from Curtin University found that a formal business plan was significantly associated with higher gross revenues and growth in sales. And it’s not just about the big-picture plan: aligning resources with strategic goals also helps businesses improve productivity, reduce waste and achieve long-term growth.
Here are our top tips for making strong decisions with clear focus.
Reliable Financial and Operational Information
Some people use their ‘gut feeling’ to make decisions, but this isn’t a great approach when it comes to business. What’s more important is finding solid evidence to back your hunch.
So do your research and investigate all relevant information that you have available to you (making sure it’s from reliable sources) to fully inform your choice.
This might look like requesting multiple quotes for a piece of equipment you want to purchase after researching the best options on the market, or ensuring that a payroll system you’re considering actually works as promised.
Take that payroll example a step further. Rather than relying on a curated sales demo to convince you this is the best option, do your due diligence and speak with another organisation of similar size or structure to yours that’s already using the system. Ask them about the practical realities. How easy was it to migrate their data across, do the reporting features hold up when things get complicated, and how responsive is the provider’s support team when something goes wrong. This first-hand information will be invaluable when making a strategic business decision.
Which Option Best Supports Your Business Objectives?
Let’s say you want your business to grow in the long-term but you’re not sure if it can afford more staff.
Analysing your financial situation in detail will help you decide if your business income will grow enough to sustain any additional staff members, and whether other factors might get in the way.
You can also estimate how much new staff are likely to boost productivity and compare this to the likely trajectory if staff levels don’t change and if the benefits outweigh the costs, then go for it!
Don’t Rush
More often than not, things feel incredibly urgent, and the pressure is on for you to make a call. All we can suggest is, never rush a critical business decision. Time, perspective and good research will always help you to evaluate the pros and cons objectively.
No matter how urgent it seems, it’s essential that you have all the information in front of you, before you can make a well-informed decision.
Even if time is tight, it pays to do your homework – just do it quickly!
Seek an Objective Expert Opinion
Counsel from a trusted advisor, mentor or accountant can also be a major help and provide reassurance that your decision is right for your business (or warn you that it isn’t).
Getting a fresh pair of expert eyes is a great way to identify potential blind spots that you haven’t noticed. Because regardless of how much experience you have in your business, a third party may add a new and useful perspective.
No decision-making procedure is perfect, but a clear process that ensures all bases are covered first can reduce uncertainty and improve outcomes.
The Australian Government also offers advice on setting goals for your business here.
Case Study – Should a Retailer Upgrade Their Premises?
As an example of an informed business decision, Jen, the owner of a growing women’s clothing business, Swish Fashion, is considering larger premises.
To gain clarity, she should review sales trends, customer numbers, rent costs, cash flow forecasts and future growth plans.
Jen should also consider whether the current store location is limiting stock range or customer experience.
After discussing numbers with her accountant and weighing the risks and benefits, she can make an informed choice – and hopefully prosper!
If you’re facing these kinds of challenges and struggling to find focus for your business, we’re here to help.
