As a business owner, making spending decisions is one of the things you will do frequently. Money is a very scarce resource and how you decide to spend it could make or break your business.
Deciding on how to spend money can be a very complicated process flawed by our inherent cognitive biases. However, when you follow the steps in the infographic below, you’ll able to make good spending decisions which help you achieve your business goals and prevent you from flushing your business down the drain.Money is a very scarce resource and how you decide to spend it could make or break your business. Click To Tweet
To Illustrate how the decision matrix works, let’s say SesiWeb, a web design company wants to decide on which web hosting platform to use for their clients. They search online for possible solutions and after researching and reviewing each possible solution, they narrow the list down to four choices and decide to use a decision matrix to rank each solution.
They decide on key specifications and rank each possible solution on a scale of 1 to 5. Here is what their decision matrix will look like.
So after the analysis, SiteNinja.com gets the highest points so SesiWeb decides to buy hosting from SiteNinja.com and they arrived at this through a good decision making process.
Follow the process and you’ll have a good chance at making better spending decisions for your business.
Making spending decisions is an integral part of running a business and is critical to your success. It is essential that you learn how to make them right.