We find ourselves compelled to make quick decisions every day. Whether it’s choosing a donut or selecting a parts vendor, time is important. Important decisions require information, evaluation, and planning. The more accurate your evaluation is, the better your decisions are and the more value you provide to your company. Instinct tells us big decisions shouldn’t be rushed. But there are more decisions waiting. Fortunately, there’s a simple approach to making your evaluations soundly without drawing out the process.
1. Define your objective
What’s the point of making this evaluation? Think about what needs you wish to address, what metrics you should look at, and what kind of value your company is getting from the effort. There’s no point in making it overly complicated if you have a clear goal and understand how to get there. Think about the ideal outcome.
For example, say you’re trying to evaluate two finalists for a new IT position as a website administrator. Jerry is likable and has a lot of IT experience, but he’s also in his mid-50s. Karen is a little reserved, 30-ish, with less overall experience but more current web expertise. As much as you like Jerry and his wider skillset, your ideal choice would likely be Karen, who has the specific skills you need and is more likely to grow with your company long-term.
2. Short and long-term outcomes
When making an evaluation you should also consider how things will develop long-term, as well as your immediate needs. The desirability of satisfying both outcomes should weigh into your evaluation. Going with the cheaper customer relationship application might save you money now, but will it be adequate for business needs three years or five years in the future? Will plans to purchase a better application in the future really be the most cost-effective alternative?
Future planning is always important for planned scalability, technical advances, staffing needs, and other business changes. Sometimes budgets are tight, and you have no choice but to take the cheapest route. But is that the right time to buy? When you make your evaluation, be certain you are looking at long-term as well as short-term objectives, and decide which outcome is more crucial.
3. Test your conclusions
Business needs can change rapidly with market changes and industry developments. Sometimes just keeping up with competition can require an influx of capital. In trying to stay marketable, late or inaccurate evaluations can do more damage than guesswork. Tracking and testing at each step should be figured into any process to create future improvement. Doing evaluations in one pass is always quicker than doing them twice.
Any evaluation doesn’t have to be final. When you make your analysis carefully and well ahead of schedule, it should still be verified. Schedule and monitor timelines so that if your evaluation is going slowly or encounters problems, you can look for ways to extend the deadline or to compensate. Always check to see that your conclusions played out as expected after the fact.
4. Budget
Consideration for what provides the best return on investment is always a priority. If you’re considering selling your company, or pursuing additional funding, it’s important to know what your assets are worth and what future revenue potential you’re looking at. Evaluating your net worth involves a lot of calculation, but margins and returns are the best indicators.
Consider a capital expert like Advance Funds Network. These professionals are able to find you the funds you need efficiently and honestly. You need a sympathetic, human approach when it comes time to obtain the capital you need to grow or sustain your business. With AFN, there are no upfront fees or obligations. You could get the capital you need in less than 24 hours.
Know where to prioritize. The time you put into evaluating your options should be scaled according to the potential value to your organization. Data collection and analytics can help to recommend a course of action quickly. Choosing whether or not to build a new warehouse is a big decision, but buying new carpeting shouldn’t be.
Evaluations, like every other aspect or business, are something you should be constantly trying to make more systematic and efficient.
