 Once you own your own business, you will have to make decisions and solve problems everyday  Many entrepreneurs makes decisions casually or based on intuition (gut feeling)  You can’t base you decisions on faulty assumptions or illogical thinking  Successful entrepreneurs use Problems Solving Techniques

A formal problem solving model helps business people solve problems in a logical manner Follow 6 Steps: 1. Define the problem 2. Gather information 3. Identify Various Solutions 4. Evaluate Alternatives and select the best option 5. Take action 6. Evaluate Action

 Before you can solve a problem, you need to diagnose it.  Write down what the problem is and why it is a problem.  Try to quantify it too (mathematically figure out whether it is worth fixing or not), basically, how much is it costing you.

 Gather the right information that could help you solve it e.g. Company records, industry data, interview customers, employees, suppliers and other business owners (like next door to you) to see if they have experienced similar problems and they have dealt with them.

 Most problems can be solved in various ways.  Identify all possibilities before you choose the one that fits best

 The decision maker then needs to evaluate all possible alternatives.  Either quantify the alternatives or  Rank them in an order from best to worst

 Once you have selected the best solution to the problem, you need to take action to implement it.

 Even a well thought-out problem solving process may not work  You need to take a close look at whether your choice was a good one and did it make your business better than what it was during the problem?  Evaluating your action puts you in a better position next time when you are faced with a similar problem again.

 You are noticing that your telephone bills are being bombarded with long distance charges that you know are not business related because many of the destinations, you do not do business in. You have even noticed some International calls placed and you are very certain that your employees are probably the ones taking advantage of the phone lines when you are not looking.

 As a business owner you will have to make many decisions yourself, however, you may want to include employees.  More brains are better than one brain

 Brainstorming A creative group problem solving technique that generates many fresh ideas. Make it informal by gathering around a pot of coffee and chat about the problem and possible solutions Encourage everyone to volunteer Have a person write all suggestions down on a piece of paper

 The person who called the meeting is the group moderator  The moderator holds order during the meeting  Makes sure that everyone is heard  Makes sure that the group stays on track  Ideas are not critiqued  Ideas are only shared  A list of practical ideas is prepared Choose as a group or the owner of the business may decide that it is in the company’s best interest for the owner to decide

 An agreement among a group of people  An effective way to bring groups of employees together to solve a problem  It helps resolve conflicts  It can bridge communication problems  The main goal is to find a solution that would make all or most people satisfied  A process that tries to eliminate anger and hostility

 Employees with conflicting opinions can meet in a place or atmosphere that fosters mutual respect