Foundation 18 of 20 · Control
A Gut Feeling Is a Good First Vote. It Is Not the Final One.
"How do I know if I'm making the right call?" Three good options, three people giving three different opinions, and you have changed your mind three times this week. Here is the decision-making process in five steps, so you choose once, with facts, and know when to check.
Last Updated: 10/25/2026 · Written by Dr. Paul Borosky, DBA, MBA
The Short Answer
What Is the Decision-Making Process?
Textbook Definition
The decision-making process is a structured sequence for choosing among alternatives: defining the decision, identifying options, gathering relevant information, evaluating costs and benefits, selecting a course of action, and reviewing the outcome.
In Plain English
The decision-making process is five steps for choosing well: name the decision, list the options, get the facts, weigh the costs and benefits, then choose and set a date to check whether it worked. It does not take long. It just has to happen in order.
Why It Matters
Why Do Owners Keep Changing Their Minds?
Because they are collecting opinions instead of facts. Each person asked knows a little about one option and nothing about the business. So the decision follows whoever spoke last, and gets remade the next time someone new weighs in. Decisions made on mood get remade on mood.
Every real choice has a trade-off: what you give up to get something else. You cannot see the trade-offs until you count things. A simple process does not slow you down. It keeps you from deciding the same thing five times, and it lets you explain your choice to anyone who asks.
Big decisions also tend to arrive at the worst time: right after a good month, when every idea looks possible, or right after a bad week, when everything looks risky. A written process protects you from both moods. You will still feel the pull of your gut. That is fine. Let it cast the first vote, then let the facts cast the rest.
Signs you have this problem:
- You have "decided" the same thing more than once this month.
- Your choice changes depending on who you talked to last.
- You have more opinions about the decision than facts.
- "Do nothing" never shows up as an option.
- You are tempted to let a coin, a gadget, or the loudest voice decide.
- You never go back to check whether a past decision worked.
What It Looks Like
What It Looks Like When Decisions Follow the Last Opinion
From the Fabled Forest · Chapter 18
Startup Steve finally finished a business. His barbershop had been open five months, with a loyal Tuesday crowd and a busy Saturday. For the first time, he had a problem that came from success: three good ways to grow, and no idea which to pick.
He asked the baker, who said move near the market. He asked a friend, who said add a second chair. He asked a customer, who said bike rentals. He had decided three times that week. Then a parrot on the windowsill suggested flipping a coin, and his new gadget recommended the option it had the most averages for.
Doctor Owl stopped the coin and asked one question about all that advice. Steve did not like the answer. Then he spent a week counting things he had never counted.
Steve's story is Chapter 18 of Management and Leadership for Small Businesses, Book 1 of Dr. Paul's Fabled Forest Business School Series.
The Fix
How to Make a Business Decision in 5 Steps
Most decisions do not need a week. Big ones deserve one. Either way, the order is the same.
Name the decision in one clear sentence.
Not "which idea." Something like "How do I grow the shop this year with the money I have saved?" A clear question gets a clear answer.
List the real options, including doing nothing.
Those are your alternatives. Doing nothing is always one of them, and sometimes it is the best one.
Get the facts you are missing.
Count things. How many customers walk out? What does the space cost? Who would be affected? Ask the people who know your business, not just people with opinions.
Weigh the costs and benefits of each option.
Side by side, on paper. Write what each one costs, what it brings in, and what you give up.
Choose, and set a date to review it.
Set the review date now, while you are calm, so one slow week does not talk you out of a good decision. If it is not working by then, you will know why, and you can decide again with better facts.
Dr. Paul's Insight
The most common mistake is asking for more opinions when what you need is more facts. Tools and advice can help. They can find averages and check numbers. But they do not know your customers, and they do not know you. Tools inform. Owners decide.
Sample: A One-Page Decision Worksheet
Fill in one row per option. The answer is usually obvious once the facts are on one page.
| Option 1: Add a second chair | Cost: about $400 a week in pay plus $2,000 setup. Benefit: about $640 a week from customers now turned away. |
| Option 2: Add a new service line | Cost: about $6,000 in equipment, and no one on staff knows it. Benefit: unknown. No local demand data. |
| Option 3: Move to a busier street | Cost: rent three times higher. Benefit: more walk-by traffic, but most regulars live on this side of town. |
| Option 4: Do nothing | Cost: no new spending, but customers keep walking out. Benefit: savings stay in the bank. |
| Choice | Second chair. Hire by the 1st of the month. |
| Review | In 90 days: Are walkouts down? Is the chair paying for itself? |
Sample for illustration. Use your own options and your own counted numbers.
Watch
Video: Make a Business Decision in Five Steps
What Is the Decision-Making Process? 5 Steps for Managers
Dr. Paul runs a real-looking growth decision through the five steps and a review date.
From the Book
Opinion or Fact?
Chapter 18 · Decision-Making
This One Is Definitely the One: A Monkey's Coin Toss
"Steve," said Doctor Owl. "Every person you asked gave you an opinion. How many of them gave you a fact?"
Steve thought about it.
"None?"
"Then let us get some."
Which option won once Steve had the facts, and what happened when the parrot flipped the coin anyway? Chapter 18 has it. Book 1 of Dr. Paul's Fabled Forest Business School Series.
Get the Book on Amazon →FAQ
Decision-Making Process Questions
What are the steps of the decision-making process?
What is a trade-off?
What are alternatives in decision making?
Why should a decision have a review date?
Keep Going
Related Foundations
A good decision sits between finding the cause, planning the work, and finishing it. New to a term on this page? Every one is in the small business management glossary.
Foundation 5 · Root Cause Analysis
Some decisions are really about fixing a root cause first.
Foundation 6 · Execution
Once you choose, execution carries the decision through.
Foundation 7 · Planning
Big decisions belong inside a plan with costs, owners, and order.
Foundation 13 · Communication
Bring hard decisions to a meeting with an agenda and an owner.
Written by Dr. Paul Borosky, DBA, MBA, business consultant, author, and educator with 14+ years and 1,000+ clients served. Stuck between options and want a second set of eyes on the numbers? Dr. Paul works with owners one-on-one.
This page is for general educational purposes only. It is not legal, financial, tax, accounting, or other professional advice. Dollar figures are illustrations. The Fabled Forest and its characters are fictional. For decisions about your own business, consult a qualified professional.