What is business decision-making, and how can you make it easier?

What is business decision-making?

In simple terms, business decision-making is the process of determining one or more plans, strategies, and actions based on various business challenges or opportunities. Through this process, a business can not only improve but also navigate through tough times effectively. In some cases, taking risks to gain higher profits or ensure survival can also be part of business decision-making.

Every small or large decision in a business can impact its success or failure. For example, product production, sourcing raw materials, market entry strategies, cost-cutting methods, and so on—all of these rely on making the right business decisions.

What is the first step in business decision-making?

It is essential to know the first and primary step of any decision-making process. The first step in business decision-making is to accurately identify and analyze the problem. This step is the most crucial because if the correct problems are not identified, the solution process can go in the wrong direction, and the decision-making process will become more difficult. Therefore, first, identify the problem, and then you will be able to take the appropriate steps for making the next decision.

• Identify the problem: In this step, every sector of the business must be observed and evaluated.
• Data collection: Collect and analyze the necessary business information from various sources.
• Identify alternative solutions: To find the correct solution to the problem, various alternatives must be discussed.

What should you do at each step of the decision-making process?

1. Collect and analyze data. 

As mentioned earlier, collecting accurate and reliable data and analyzing it based on that information is the first step in decision-making. For data collection, reliable sources are essential, from which gathering information is easy. For example, if you maintain your business's accounts in a bookkeeping app, you can easily get all the data from a single platform. This will provide you with a detailed understanding of your business's income, expenses, financial status, and transactions.

2. Identify alternative solutions

After identifying the problem, you will naturally need to find a way to resolve it. For this, alternative solutions are required. For example, if you have multiple options for making a decision, you must choose the most suitable one for your business. If you want to reduce production costs, you should review various alternative solutions to see which one will work best for you. Identifying the correct alternative is also a crucial step in the decision-making process.

Using the HishabPati app helps in evaluating alternatives. This is because the app keeps a record of all your business's financial activities and transactions, which you can easily view and analyze.

3. Create a plan.

You have completed the main task of making a business decision. Now, it's time to act based on that decision. Therefore, it is crucial to create a practical plan after making the decision. Set clear goals in the plan and take the necessary steps accordingly. If needed, seek advice from experienced business owners. If possible, you can learn by looking at or hearing real-life examples.

4. Implement and monitor the decision.

Now, do the final task. That is, properly monitor whether the work is being implemented according to the plan. This will help you assess the effectiveness of the decision made. If you realize that it's not yielding good results, you can take the initiative to change it if necessary.

How does HishabPati assist in business decision-making?

An accounting software can digitally store and manage various business data. A bookkeeping app helps in collecting, storing, and analyzing accurate information, which plays a crucial role in making correct business decisions. Therefore, the HishabPati app can also assist you in business decision-making.

1. Analyzing sales and transaction data.

HishabPati will record every transaction of your business, and by analyzing them later, you can understand the accurate financial status of the business. This information will help make your decisions more planned and informed.

2. Controlling expenses and creating a budget.

HishabPati can be an effective tool for keeping your business expenses under control according to the budget. It identifies specific expense categories and allows you to allocate the budget accordingly, helping to keep expenses in check.

3. Cash flow management.

Cash flow is an important aspect that helps in understanding the profit-loss account and the current financial situation of the business. By using HishabPati, you can analyze your current cash flow and identify areas for future cash flow. These analyses will assist in making future financial plans.

4. Sales, profit, and other various reports.

If you need to make decisions based on your business's sales and profits, HishabPati's reports can be very helpful. They allow you to evaluate the business's performance and determine the next steps.

5. Financial reporting and analysis.

HishabPati helps in creating various types of financial reports, such as profit and loss statements, balance sheets, etc. Through these reports, you will gain a deep understanding of your financial status, which will make business decision-making easier. To learn more about business decision-making and explore this topic in detail, read on: 

HishabPati's Reports: How to make decisions by looking at business reports

HishabPati for simplifying decision-making

As you can see, HishabPati is an app that helps simplify and ensure accuracy in every step of your decision-making process. It automatically records each transaction and generates financial reports. Therefore, use HishabPati to complete this process easily, quickly, and accurately. From data collection to analysis and decision implementation, rely on HishabPati’s support at every step.

Start your journey with HishabPati in three simple steps!

• Sign up on HishabPati: 

First, visit the HishabPati website and create an account for your business. Alternatively, download hisabpati app from google play store and register. Registration in HishabPati is quite easy & complete free.

• Set up your company: 

After signing up, first set up your business profile by providing the necessary information as the owner. Then, set up essential business aspects such as inventory, units, purchases and sales, outstanding balances, invoices, and transactions. After that, start updating daily transactions.

• Enjoy the various features of HishabPati: 

Once you start managing your business accounts with HishabPati, make sure to utilize the necessary and unique features, such as invoicing, barcode scanning, units, and expense management. To understand how to use HishabPati and its features in detail, watch demo videos in Bengali on YouTube. 

Digital ledger for income and expenses – HishabPati demo.

HishabPati's subscription fee starts at just 99 Taka!

HishabPati is Bangladesh's easiest and most affordable accounting app. Its subscription fee is divided into monthly and annual terms, with three budget-friendly packages available.

• 01. Basic Package: The Basic package is completely free! This means you can try out the app without purchasing a subscription.
• 02. Premium Package: The monthly subscription fee for the premium package is just BDT.99. And there's a 17% discount on annual subscriptions! It will cost only 999 taka in a year!
• 03. Business Package: The monthly subscription fee for the Business package is just 199 Taka. Like the Premium package, the annual subscription also comes with a 17% discount, making the yearly cost only 1990 Taka.

Know about all features of packages today in details & choose your desired package. Good luck with your business!