Large companies and organizations with staff and budgets use sophisticated tools to analyze business risks and opportunities. But that doesn’t mean that your small business without these resources cannot benefit from the basic value of these same tools.
Consider these three tools that might start with a simple entry in your journal and pick up later with as a conversation with your business coach or advisors.
First, ask your business coach or do your own online search for much more information about using each of these tools. You will find plenty of simple useful help.
- SWOT analysis (strengths, weaknesses, opportunities, and threats), decision matrix (try this to start)
- Pareto analysis, known as the 80/20 rule (try this to start)
- Risk analysis using either Monte Carlo, decision tree, sensitivity analysis, or root cause analysis (try this to start)
All of these are commonly used tools to help larger firms make decisions. But each is equally valuable when incorporated even on a casual occasional basis as part of your small business management process.
Then take action to write down your impressions. Do not wait until you feel that you fully understand either the tool or its use in your situation. Make notes on whatever comes to mind.
Flush out the ideas as you speak with family, colleagues, or whoever you rely on for business input.
Finally, schedule a time to talk through the issue in an organized format with your business coach. That session may include follow-up accountability plans to keep whatever valuable ideas you develop alive and moving forward.
That’s it! It doesn’t have to be complicated to work well.