Business is about making decisions on the go.The land scape keeps changing every now and then and decisions have to be made every now and then.Every business is as good as the last good made decision.A business would be doing great and one bad decision will see it come crambling down over night.
Decision making is a very important aspect of running a business. We have been experiencing some difficulties at Goka in the past two months.The prices of everything that we use for production has risen straight from flour, cooking oil, eggs, milk name it. The margins on our products being so small we found ourselves in a situation where the increament in cost of production has eaten into the small margins we had.
So the team was wondering, what do we do? Do we reduce on the ingredients we use? For example where we use 10 eggs use 5 eggs? Do we take out the milk? Do we stop doing some products like dougnuts that had totally lost money on them? Do we increase the price? If we do, wont the clients stop buying, since we are operating in a very very price sensitive market. All these are questions that need answers, decisions that need to be made.

My general belief is that, the best way to save money is to try and make much more money. So rather than drastically reduce your costs to a point that affects your efficiency and quality of out put try to generate more money to offset the new costs. So dropping some products was not going to be the way to go for us. Reducing ingredients was going to mess with the one thing clients like most about our products, taste/quality so that was a no go area.

In the end we decided to keep both products on our line, keep the quality intact because tempering with it was the most risky option. We decided we shall increase sales by raising money to buy two new sales bikes. Buy a deep freezer to buy some of the things we use in bulk from wholesalers.We shall increase the price by an extra 100shs for the doughnuts and an extra 500 shs for the daddies on a dozen. We also decided to introduce a new product on board. The whole of last week it was in testing phase so we plan to have it out this week to gauge customer feed back before we go into full scale production. all in an effort to push more sales.

The market is responding slowly to our price changes but we are also trying to make them understand it where we can. Looks like they are going to adjust just fine with time as we also keep adjusting things here and there to remain afloat and also continue serving the market. Yes, it’s decisions, decisions, decisions. One wrong decision and your gone. One right decision and things are great. That’s the reason you see most CEOs make the kind of money they make even when you feel they don’t do so much of the physical work/heavy lifting. It’s for those decisions that lead every one and everything on, in the right or wrong path.

So make decisions in your business with the importance, proper judgement and urgency they deserve. Take time to critically think about the changes that need to be made. Make them and make them at the right moment. A minute ealier or a minute late can make the difference.

Jaluum Herberts Luwizza is a Speaker,Writer, Columnist with the C.E.O Magazine and Contributor with the Nile Post.He is also a Business Consultant with YOUNG TREP East Africa’s No.1 Business Management and Consultancy firm that helps people start and grow profitable businesses.
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