When you run a business (even a small business like mine) you have to make a lot of decisions. Many of these decisions are complicated and have to be taken with incomplete information. But you can’t take too long over them, or you will never get anything done. Here are 3 techniques I use to help with difficult decisions.
Break it down
This is a very simple method for breaking a difficult decision down into smaller parts using a spreadsheet.
- Decide the criteria that are important for the decision. Add a row for each.
- Add a weighting column. Assign each criteria a weighting in the range 1 to 10, depending on its relative importance to you.
- Add a column for each option you are considering.
- Set each criterion/option cell a value in the range 0 to 10, depending on the extent to which the choice for that column fulfils the criteria for that row.
- Calculate the weighted sum for each column.
- Choose the outcome with the highest weighted sum.
Here is an example for choosing between 3 different types of hosting:
It’s not particularly scientific, but it does force you to systematically break down the problem into smaller parts and justify your decision.
Take the long view
It sometimes helps to stand back and look at the bigger picture. I can think of no better way to do that than to ask a hypothetical (hopefully elderly) future me, lying on my deathbed, which option they approve of. For example, given the choice between adding an innovative new feature to my product or improving the conversion funnel by a few percent, I think future me would be happier that I chose to add the innovative new feature. It is also a useful reminder that many decisions probably aren’t all that important in the grand scheme of things.
Flip a coin
Sometimes you need to make a decision, but you don’t have enough information or the time taken to get that information is going to cost you more than making the wrong decision. In that case, don’t agonise over it. Just roll a dice or flip a coin and move on.