Making A Business Decision Is About Keeping Everything In Balance!



Any business decision should be based on the principle that it will maintain the balance of the owner, employee, and customer. If the balance anyone of these partners is offset the decision should be to not go forward without further research.

Maintaining the balance of the owner, employee, and customer is the life blood of any for profit Company. All three must have an incentive to continue being involved or the business will die. This is an absolute fact. So all three must be considered in any decision you make.















So when you are faced with a business decision, whether big or small, closely examine how it will affect the balance of your business.

Let’s examine the Owner:

Owners that operate a for profit company are in business to make money. In fact, they are in business to make more money than they could if they took their money and placed it into something else that required less risk yet will return the same or more profit. As an example if the owner could have placed their money into the bank, which is very safe, and made just as much or more why in the world wouldn’t they. There are several other very safe investments, like money market accounts and annuities that pay reasonable interest and require no stress.

So if you are faced with a business decision that affects the Owners ability to make a reasonable profit then you better have a very good reason if you decide to move forward. Some examples of decisions that may affect an Owners ability to make a reasonable profit are; buying equipment that is not needed or that won’t increase productivity/safety, changing a process that will increase labor costs but will not increase productivity/safety, pricing a product or service too low, paying an employee more than what would be considered a fair wage for their services.

Let’s examine the Employee:

Employees choose to work for an employer that pays them a fair wage and that will treat them with respect. Once an employee no longer considers their wage to be fair for any reason one of two things will happen. Either the employee will quit or worse they will begin to be noticeably less productive. Anytime an employee feels like they are being taken advantage of it will hurt the business. An employee’s wage is dependent on many things but one of them may be not costing the product or service correctly. How to price your service or product is an extremely valuable business decision. Finally, let’s examine the Customer:

The old saying the customer is always right is not necessarily true if it throws the balance of the business off. After all, most customers are going to try and tell you that they want everything for as little as possible. However, most customers believe that they get what they pay for; therefore, if you are charging Cadillac prices for junk yard quality then the customer will take their business somewhere else. On the other hand if you are charging junk yard prices for Cadillac quality then sooner or later the employee and the owner will suffer and no longer have an incentive to remain in the organization.

Therefore, every business decision you make should consider the above issues first and then any secondary issues after that. However, not many decisions will fall outside of this.


Thank you and May God bless you!


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