Generally, market analysts and agents have contended that the sole motivation behind every business is to make profit - the more the better. That limited picture, typical of the entrepreneurial framework, shapes the activities of most companies, making them direct their efforts towards “here and now” benefits and investor returns. Their choices and decisions are therefore heavily influenced by monetary considerations.
If you are new in the business world however, and want your business to grow, your first priority should be how to make your business grow rather than making profit. This is the way great companies think. They all have to start from somewhere.
One cannot set up a business and start expecting to earn huge profits immediately. The first action before the business idea is launched, is to conduct some analysis of your target market and what their needs are, and see whether the business you are planning to set up will cater to their needs or not. For example, it’s possible the segment you have targeted is only concerned about high-quality products (cars, apparel etc.), and you are trying to sell your academic services to them. Taking time to conduct some initial analysis of what your target market needs is worthwhile.
Importance Of Good Decision-Making
Good decision-making is key to making profits. It is said that the success of a business depends on how decisions are made at the top level, and how they are executed by managers and other workers.
It’s important to make the right decisions in business to ensure it flourishes. So, how do we know if we have made the right decision or not? Sometimes, even after preparing feasibility reports and studying target audiences, some organizations still fail to deliver on their objectives. What’s the best way forward?
In Comes the Analyst
The services of business analysts are essential when determining where the trouble spots are in the business. Business Analysts are trained professionals who are experienced in analysing situations and providing recommendations to management on the way forward.
In order to ensure business success drawn from better decision-making, the following are three tips that should be taken into consideration when growing your business, or setting up a new one:
1. Enhance your business portfolio
Great organizations know when to stick to their core competence or when to delve into other aspects of business. They watch the market and understand when and how to react. Business Analysts can help analyse market trends, recommend best practices and add valuable insights on business projects.
2. Keep errors in mind
Great organizations remember their mistakes and develop a systematic way of learning from them to ensure they don’t happen again. People learn from their mistakes and this should be embedded in every business person’s mind. If this is practised, it becomes easier to make better decisions. Business Analysts, in collaboration with key stakeholders like project managers can provide insight into prior mistakes and bring new learnings into business projects to ensure that business value is constantly delivered.
3. Be open to change
Incredible organizations are always open to improvements. They do not stick to their old values and customs, but look around, study those around them, take advice and change accordingly.
For the regular decisions individuals make, the risks are few and far between. On a corporate level however, the implications (pros and cons) of making decisions can be far-reaching.
In order to avoid failures and make good decisions, organizations must be able to manage the risks and even better, take advice from seasoned business analysis professionals when faced with tough business decisions.
Elizabeth Taylor is a recent Psychology Graduate from University College London. She believes that the endless potential and the implications of psychology can be used to improve overall society’s wellbeing.