7 Entrepreneur Tools for Decision Making

There are so many techniques that entrepreneurs can use to take

up a decision. However, it is important to note that while a
particular tool may work in one organization, it may fail in
another. A whole range of factors need to be put into consideration
before using a specific tool. There are instances where you will find
that combining several techniques would be the ideal situation.

Here are some of the best tools for decision making:

1) Market Research

Marketing Reasearch is an essential tool, especially when you are

gathering the information before making a decision. This will
include analysis of the potential customers, state of the market
and the competition in the market among others. This is a
strategic tool, which most entrepreneurs rely on to make the right
decision.

2) Decision Matrix

With this tool, you will critically analyze all the available options
or alternatives of a particular decision. This allows you to look at
all the options and the factors that affect each. You can use
comparative analysis so that you can find the best option to help
you in decision making. This is one of the most critical tools for
most organizations as it will help reveal the best strategy and
decision to take.

3) Cost-Benefit Analysis

With a cost-benefit analysis, you will take the time to assess all the
costs that will be involved in the decision taken and the benefits
that the organization will gain from this. As a result, entrepreneurs
will go for the decisions that will have a greater benefit, in terms of
the overall net profits in the organization. The sole objective of any
company is to make profits, and as such, every decision taken
should be towards that direction.

4) T-Chart

This is also among the best tools that can be used for comparative
analysis. The T-Chart is used to weigh the pros and cons of any
option that the organization may be considering. At the end of it
all, it helps entrepreneurs to make the right decision, having
weighted in all the advantages and disadvantages of all the
available options.

5) SWOT Analysis

The SWOT analysis is commonly used for strategic planning and

eventual decision making. Using SWOT analysis, entrepreneurs
are able to maximize on the strengths of the organization. The
weaknesses are also considered in view of the available
opportunities. The organization will also consider the possible
threats before taking any course of action. This is an effective tool
as it allows entrepreneurs to analyze the company from all
possible angles before taking a decision.

6) Pareto Analysis

This is commonly referred to as the Pareto principle, and it is

common when organizations have to make huge decisions. This is
inclined towards the prioritization in that 20% of the factors that
contribute to 80% of the organization’s growth will be given top
priority. This will give the decisions that have the highest level of
impact top priority.

7) Feasibility Study

Feasibility studies are also used in the strategic planning of the

business. In this case, entrepreneurs will assess the possibility of
creating a specific project and if it can make profits. This is among
the tools that should be used at the very beginning of launching a
new product or service. This will help the company decide if a
particular strategy is ideal or feasible for the company or not.