Posts tagged "market share"

Advice Strategy

5 Key Non-Financial Metrics

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“Companies that establish clear lines of sight to the metrics that matter and then make sure that employee behavior is aligned with those metrics can create enormous value growth.” Tony Siesfeld and John-Paul Pape

Over the past two weeks I have been discussing both financial and non financial metrics. They both have their place in helping manage businesses better. I find non-financial metrics fascinating and am inclined to look at them for guidance in comparison to financial metrics. Unlike financial metrics which are purely numbers performing in different segments, non-financial metrics provide much deeper insights into the inner workings of the business. They help understand why certain financial metrics turn out the way they are and what changes can be brought about to improve them. Some however find safety in numbers and are less inclined to rely on these relatively intangible measures. As entrepreneurs we have to look after the business on multiple fronts. We must have the ability to quickly assess several key components on a regular basis. Outlined below are five relatively generic key non-financial metrics. They can be applied to all sorts of business models to help you gauge the level of progress being made from a dashboard view.

1. Customer Satisfaction: Acquiring a customer is only the first step, providing value and satisfying the customer is where the actual work begins. It is a well known fact that acquiring a new customer is between 5-10 times more expensive than retaining your current customer base. To measure customer satisfaction comprehensively we need to take into account all major touch points where the customer will be interacting with our business. Subsequently we will need to choose several sub metrics such as perceived quality & value, trust and loyalty to accurately gauge their satisfaction levels. These can be measured through a variety of tools such as surveys, focus groups and observations. To learn more please click here.

2. Employee Loyalty: Employee loyalty has been directly linked to the customer’s loyalty and corporate profitability. Whether you are a new start up or an established one, this measure needs to be continuously monitored. From the very beginning employees must be told what to expect when they join the firm. They need to be made part of the inner circle to avoid alienating them. Growth and development opportunities must be presented to keep their motivation levels high and lastly they need to be compensated fairly for the work they are doing. Each one of these sub measures needs to be monitored along with several other key indicators such as burnout thresholds. To learn more please click here.

3. Innovative Index: Innovation is measured very differently in various organizations. I believe innovation relates to the ability of an organization to continuously improve on its existing product/service ranges as well as to develop complementary assets around them which will enhance their core products. This will help create multiple lines of business and will keep the business afloat when a core product faces strong competition or a recessionary pressures. To learn more about this metric please click here.

4. Market Share: There is substantial evidence which states that market share is directly related to ROI. With an increase in market share a business can expect to benefit from economies of scale that ultimately lead to better operating margins. A business therefore becomes stronger by gaining market influencing powers and equipping itself with quality management teams. To measure a business’ market, one needs to first understand the industry, competitors, customers and other market factors which have a direct impact on it. Through the understanding of these measures we can calculate how much the total market is worth and then determine our share. Accordingly we can then measure how we grow market share over a period of time. To learn more about this metric please click here.

5. Execution of Corporate Strategy: Business all comes down to execution. Without this critical component we can make all the plans we want and prepare for every possible scenario and achieve very little. As business owners we set ourselves targets and construct strategies to reach them. The next step requires one to implement strategies through a set of tactics. This is the step that separates the talkers from the doers. Don’t get me wrong, careful planning, thoughtful preparation and taking calculated risks is very important. However it should not restrict someone from taking action. To learn more about this metric please click here.

Listed above are a set of non-financial metrics which I believe can be applied to most business models. Apart from these metrics, a business needs to be careful of other measures which are critical to their particular business model. In the end these metrics should not be the end all and be all of the organization. Their purpose is to primarily provide management with the ability to look at several key segments of the business and get an idea about their performance. I believe the correct use of these metrics helps us not only to become better leaders but also impacts positively and dramatically on the business. I would really like to know what non-financial metrics you are using and which industry you are in. Feedback and comments on the metrics provided above will be greatly appreciated.

Advice Leadership Strategy

Non-Financial Metric #5: Execution of Corporate Strategy

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“There is value in careful planning and thoughtful preparation. However, until there is execution, no plan is flawed; no preparation inadequate. Execution spotlights all.” Chip R. Bell

Business all comes down to execution. Without this critical component we could make all the plans we want and prepare for every possible scenario, but achieve very little. As business owners we set ourselves targets and construct strategies to reach them. The next step requires one to implement these strategies through a set of tactics. This is the step that separates the talkers from the doers. Don’t get me wrong, careful planning, thoughtful preparation and taking calculated risks is very important. However it should not restrict someone from taking action. When it comes to measuring how effective an ability to execute has been, we have to look closely at the following:

1. Goals: As mentioned many times on this blog, to be able to reach our goals they need to be specific, measurable, attainable, realistic and time specific (SMART). Many times when I have been unable to reach my target goals it has been due to the fact that I left one of these important components out. When this happens there is a complete break down in the execution process as the strategies we select will be flawed and thus will result in the use of inappropriate tactics. Therefore be very clear with the goals and targets which one creates.

2. Strategies: Good strategies comprise of objectives, scope and competitive advantages. Through goals we can establish what the business wants to achieve. For example say, our business wants to increase traffic on our website by 10% over the next quarter. The strategy for such an objective could be something like “increase traffic on our website by 10% over the next quarter by tapping into the the 18-25 demographic in Europe through leveraged relationships with our European affiliates.” If we were to leave the statement at tapping into Europe we would still be missing the “how?”.

3. Tactics: In the last statement we mentioned we would leverage our relationships with our European affiliates. Tactics need to translate this into reality by chalking out ways on how this can be achieved. For example, we could participate in some seminars next quarter in Europe, we could equip our affiliates with additional marketing material or we could even provide greater financial incentive to reach targets. What is important is that our tactics are aligned with our strategies which are aligned with our goals.

At the end if we were not able to reach goals then we need to go back and re-evaluate where we went wrong. This review process needs to take place on a weekly, monthly, quarterly and yearly basis. As a startup it is imperative that we continually evaluate how effectively we are executing and where we are facing the biggest impediments. When such a culture of accountability and execution is developed it turns into a huge competitive advantage.

Advice Marketing Strategy

Non-Financial Metric #4: Market Share

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“Failure to gain market share even with superior costs is failure to compete. This failure is also a failure to achieve even lower costs.” Bruce D. Henderson

There is substantial evidence which states that market share is directly related to ROI. With an increase in market share, a business can expect to benefit from economies of scale that ultimately lead to better operating margins. Therefore a business becomes stronger by gaining market influencing powers and equipping itself with quality management teams. Keeping track of market share is an important indicator in evaluating how business stacks up against the competition and how it progresses over time. In the early stages of starting out, a venture market research is a critical component of developing a business plan. This is usually a challenging exercise, because information regarding industries and markets is often not readily available. Listed below are some steps I use to evaluate the market and set market share targets accordingly:

1. The Industry: One needs complete information regarding growth rates of a particular industry. What are it’s historic trends? What were the revenue figures for the segment? Have any major technological innovations taken place in it recently? Is the industry very segmented? These are some preliminary questions of interest and importance when looking at an opportunity in a particular industry.

2. Competitors: This is an important segment, one in which you need to document as many direct and indirect competitors in the market place as possible. Look at their teams, products/services, pricing and any other marketing collateral which you can find. Remain constantly vigilant about your competitors, this is a must for any company regardless of size. Create document files which can be referenced easily, this will come in handy during later sections, when you are positioning and promoting your product as well.

3. Customers: Evaluate the target demographic that is going to be targeted. Is the segment growing? What are the current options that they are using in place of the product/service you will provide? How are they currently purchasing the product/service?

4. Market Factors: Are there any external factors which have a deep impact on your target market? These can be government policies, market consolidation and volatile raw material costs. The presence of these factors can have a substantial impact on your target market and must be taken into account.

Ultimately approximate size of market will be gauged. The most common metrics used for broad approximations are, sales by revenue & sales by volumes. Once we know an approximate size of the market we can set targets for ourselves. This metric can then be tracked periodically to ensure that we stay on course and alert to any fundamental market changes.

Advice Finance

5 Key Financial Business Metrics

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“If you don’t measure something, you can’t change it. The process of leadership is one of painting a vision, then saying how you’re going to get there, and then measuring whether you’re actually getting there. Otherwise, you risk only talking about great things but not accomplishing them.” Mitt Romney

As business owners we have to have our ears to the ground constantly to gauge how the business is performing. With the number of things happening in parallel, keeping up to speed is often a juggling act.  The financial management of business is a critical aspect of the overall functioning of the enterprise. Mismanagement in this area can have detrimental ramifications, these can essentially put you out of business. Keeping track of financial activity on a periodic basis is a necessity. To make the process of review easier, specially when one is running multiple businesses or business units, is to use metrics to get an overall perspective. Outlined below are five key financial metrics I use to assess the health of a business.

1. Net Cash Flow: This is by far one of the most important metrics, and one has to continuously keep an eye on it. Net cash flow is simply calculated by subtracting cash inflows with outflows. Alternatively, it can also be calculated by adding depreciation and other non cash expenses to net profit. Without adequate liquidity a business is often unable to reach its potential and will suffer severe growth issues. Use this metric to monitor the liquidity health of your business and analyze trends in areas beginning to run low on reserves. To learn more about how to calculate and use the net cash flow metric please click here.

2. Turnover Growth: Evaluating and estimating revenue growth is a tricky and challenging process. It is often based on assumptions and does not take into account unexpected events and scenarios. It requires us to take into account industry growth averages and our share of the market and industry pricing strategies, and then come up with a reliable metric. However from an historical perspective this metric can provide a reliable indicator to judge the performance of the business and the sort of average growth figures to expect. To learn more about how to calculate and use the turnover growth metric please click here.

3. Gross Margin: Gross margins is a very good metric for investors to evaluate the viability of a business. Gross margins are usually bench-marked against industry averages to see how efficiently a business is structured. As business owners, we have to do all we can to steadily increase this metric or find alternative methods to increase the metric through diversification. Periodic review cycles need to be implemented to ensure that the business is growing in the right direction and at the right pace. To learn more about how to calculate and use the gross margin metric please click here.

4. SG&A Growth: Sales, General & Administrative (SG&A) expenses include, all salaries, indirect production, marketing, and general corporate expenses. This constitutes the bulk of expenses that a business incurs and should be constantly reviewed. Each item needs to be evaluated and aligned with it’s contribution to the overall business vision. There needs to be a constant monitoring of marketing and IT expenditure to ensure that we are generating sufficient ROI’s for our campaigns and implementations. To learn more about how to calculate and use the SG&A growth metric please click here.

5. Operating Margins: This metric allows you to get an idea of the profitability of the business, and the potential to grow and scale the business further. To calculate this metric we need to know the firm’s operating income, which is revenue minus cost of goods sold (COGS) and general and administration (SG&A) expenses. This figure needs to be further divided by the firm’s revenue, to arrive at the percentage value of the firm’s operating margin. Businesses which operate with low operating margins must strive to reach revenue levels where they can take advantage of economies of scale. However businesses with higher operating margins can focus on providing a core group of products or services really well to its target segment. To learn more about how to calculate and use the operating margins metric please click here.

Financial metrics are important to keep us abreast about the financial health of our business. However, one should not become fanatical in using them as the sole indicator of how a business needs to be run. In many examples I have seen business owners become obsessed with hitting certain financial targets whether it be operating margins or net cash flow at the expense of the future growth of the business. There needs to be a balance and one needs to be able to see the bigger picture as well. The metrics discussed above provide an holistic picture of the current health of your business and should be used to identify areas of pain to help the business grow faster.

Advice Finance

Financial Metric #5: Operating Margins

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“Be precise. A lack of precision is dangerous when the margin of error is small.” Donald Rumsfeld

One sets up a business with the aim of providing prospective customers with superior products/services and in return, to be highly profitable. Operating margins tell us how much money the business makes on every $ of revenue. To calculate this metric we need to know the firm’s operating income, which is revenue minus cost of goods sold (COGS) and general and administration (SG&A) expenses. This figure needs to be further divided by the firm’s revenue, to arrive at the percentage value of the firm’s operating margin. For example if the operating income is $5 and revenue is $100 the operating margin of this business is 5%. If all the other firms in the same industry enjoy operating margins of 10%, then this particular business has major issues regarding their COGS and SG&A. There are a couple of things you should keep an eye on when evaluating this metric.

1. Revenue: Calculate where the majority of revenues is being generated from? Is there a particular product or service which contributes significantly to the overall figure? Is the revenue spread out evenly over many product or services? Each scenario poses potential opportunities and risks. Over reliance on any one product may be risky as a long term strategy. On the other hand, spreading the business over many products or services opens up the possibility of newer competition attacking the business on multiple fronts. A balance needs to be found where revenue can be maximized.

2. Fixed & Variable Costs: Pay attention to the cost structure of the business being evaluated. If the business has a high fixed cost structure with low variable costs, then insufficient revenue generation means operating on smaller operating margins. This can be both an opportunity and a threat to the business. If the industry in question is relatively untapped, there is larger potential in promoting it’s product/service with low variable costs. However if the industry is saturated with large entrenched players, it then becomes challenging to grow the business significantly. Alternatively with low variable cost structures, the business has more flexibility and can usually outmaneuver larger companies.

3. Industry Analysis: How does the company’s operating margin compare to its peers in the industry? Finding this data is usually quite challenging, however rough guidelines can be found with hard work. Once we have these guidelines, the business is bench marked on various factors compared to the competition. This gives us the ability to compare cost structures, revenue splits as well as overall operating margin comparisons.

This metric allows you to get an idea of how profitable the business actually is, and the potential to grow and scale the business further. Businesses which operate with low operating margins must strive to reach revenue levels where they can take advantage of economies of scale. However businesses with higher operating margins can focus on providing a core group of products or services really well to its target segment. As a business owner, keep a sharp eye on operating margins and continue to evaluate how you stack up against the competition.

Advice Finance

Financial Metric #4: SG and A Growth

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“There is one rule for industrialists and that is: Make the best quality of goods possible at the lowest cost possible, paying the highest wages possible” Henry Ford

Sales, General & Administrative (SG&A) expenses include, all salaries, indirect production, marketing, and general corporate expenses. This constitutes the bulk of expenses that a business incurs and should be constantly reviewed. The entire concept of running a lean enterprise extends from the fact that we use an optimal mix of resources to achieve our target goals. However, this is usually not the case in the real world and businesses tend to inflate costs drastically whenever they have some success. This creates an unhealthy dependence on extra resources and also leads to complacency within the team. When cuts need to be made during recessionary periods,  there is a detrimental impact on the team’s overall performance in such organizations. From the onset we have to continuously monitor our SG&A growth in relation to revenue growth as well as industry averages. This helps keep an eye on the ball and puts emphasis on efficiency. When evaluating this metric there are a couple of factors to keep in mind.

1. SG&A Break Up & Alignment: How are costs distributed through the business? We need to identify which costs contribute significantly to overall costs. This helps us map out IT, marketing, sales, payroll and other components which usually make up the bulk of expenses. Once we have this breakdown, we can analyze each component further and see how it contributes to the overall strategic vision of the company. If your company has a short term goal of increasing market share in its industry through mergers and acquisitions, there needs to be focus on getting the right people on the team instead of bulking up marketing expenses. We see hence how breaking up the SG&A and aligning it in accordance to the business vision is important.

2. ROI: Each major component such as IT or marketing, needs to be measured. When assessing your business it is important to delve into each component to gauge which technologies and campaigns are delivering an acceptable ROI and which are not. This exercise highlights non performing costs which are being incurred without adequate return. It is through this exercise that one can eliminate these costs and make the entire business more efficient.

3. Growth %: One also needs to pay attention to how fast the SG&A figures grow when the business begins to scale. This percentage needs to be kept in check and must be reviewed regularly to ensure that costs are not being overly inflated with growth. This usually happens when we begin to hire too many people, launch unnecessary marketing campaigns or have technology infrastructures implemented when not needed. This leads to erosion of operating margins and can have a detrimental impact on growth. If possible benchmark your SG&A against industry averages as well to ensure that growth is specifically aligned with the overall strategic direction the business wants to take.

SG&A needs to be kept in control and be constantly reviewed. However, I do not like pegging its growth to some budgeted figure. SG&A growth needs to be aligned with the business vision. Restricting it from growing over a certain percentage may have a short term benefit to the business, it may however prevent it from reaching its long term goals.

Advice Finance

Financial Metric #3: Gross Margin

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“An important and often overlooked aspect of operational excellence is regularly comparing actual costs to budget assumptions – not just the numbers in the plan. Understanding assumption deviations will help improve the accuracy of future forecasting.”Bob Prcsen

Before we calculate gross margin, we first need to know the cost of goods sold (COGS). These are direct expenses incurred in the manufacturing of a product, or the rendering of a service. There are many methods used to calculate this metric. Firstly it has a lot to do with the type of business one is running. For example, if you are running a DVD store do you include the store rent in the COGS, or as an indirect expense. Such questions will definitely come up when you are doing COGS calculations. You need to ask yourself “how is this expense related to the product/service?”and “if you were to take away this expense would you still be able to deliver the product or service?” Ultimately this will depend upon the product or service you are providing, the goal being to reach a figure which is an accurate representation of how much it costs to produce or deliver a product/service.

After calculating our COGS we can calculate gross margin by dividing gross profit (Revenue – COGS) with Revenue. If we sell a widget for $1 and we incur a direct cost of $0.4 to produce it, our gross margins are 60%. This is a very important financial indicator as it indicates how much cash will be  flowing into the business. When gross margin falls dramatically due to increase in raw material prices for example, it impacts detrimentally on every part of the business. It is therefore critical that management keep a keen eye on this metric and not let it drop below levels that will make it difficult for the organization to grow. A couple of things to keep in mind when looking at gross margins are:

1. Pricing Policies: When evaluating your business and finding ways to improve gross margins, pricing policies play an important role. When a business is in a competitive field, for example retailing of basic computer components, margins tend to erode due to competitive downward pressure. As a business owner one needs to continuously check on pricing strategies employed by competitors and how one can outmaneuver competition based on complementary services rather than price wars. Evaluating pricing strategies is hence critical to maintaining and improving gross margins.

2. Inventory Management: If your business currently holds large stock of products that are manufactured or purchased one needs to manage this rolled over inventory carefully. Left over inventory is a component of calculating COGS and when a business begins to hold on to larger quantities of inventory, margins begin to erode because of stock depreciation. Inventory must be managed intelligently to ensure that the business does not expose itself to unnecessary risks which will impact both its margins and cash flows.

3. Periodic Review: In today’s world where massive price fluctuations are a norm, one needs to pay very close attention to gross margins. This is especially true for business owners who operate with slim margins. In the past when I have been involved with product based retailing ventures, I set up weekly meetings to access this metric to understand how we were faring through various distribution channels so as to continuously adapt our strategy and plan according to prevailing market conditions.

Gross margins is a very good metric for investors to evaluate the viability of a business. Gross margins are usually bench-marked against industry averages to see how efficiently a business is structured. As business owners, we have to do all we can to steadily increase this metric or find alternative methods to increase the metric through diversification. Periodic review cycles need to be implemented to ensure that the business is growing in the right direction and at the right pace.

Advice Finance

Financial Metric #2: Revenue Growth

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“Always be closing…That doesn’t mean you’re always closing the deal, but it does mean that you need to be always closing on the next step in the process.” Shane Gibson

Revenue growth is a metric which is spoken about widely whether you are a brand new start-up or an established business. It is the one metric which investors are always keen to learn about. Revenue is quite simply the number of products or services sold, multiplied by the price. Calculating revenue is fairly  straightforward. Evaluating growth of revenue over a stipulated period of time provides a lot of information regarding the future prospects of the company.

Early stage start-ups that do not have any present revenue, or then very little, need to develop projections to gauge future revenue. Hockey stick graphs are a norm when this information is produced, I  strongly advise backing up projections with sound assumptions and research. For established companies,  regular evaluations of revenue growth projections are required to ensure that they are being met. Some key factors to keep in mind regarding revenue growth are:

1. Industry Growth: One needs to first evaluate the growth speed of the market they operate in . This helps create broad benchmarks for future prospects. For example the overall print media industry is witnessing a massive slowdown in the west. Getting into this particular industry at this point in time is not a viable future growth prospect. However, the online media industry is booming and is growing at a phenomenal pace these days. When evaluating a business it is good to get a broader perspective on what is happening in the bigger picture.

2. Market Share: Depending on the market share the business currently holds, will directly impact its ability to grow revenue. For instance, if you are a market leader in office automation products like Microsoft and control over 70% of the market, a 10% yearly growth is not a realistic target. However if the market is fragmented like the hand held mobile sector, a new entrant like Apple was able to come in, almost immediately take a substantial share in the market, and has aggressive growth targets for the next couple of years. Therefore, evaluate your market position when creating revenue growth estimates.

3. Pricing: Depending on the type of pricing strategy adopted, one can determine what sort of revenue growth is possible. If for instance,  the business is planning on increasing prices next year, and even though this could positively impact margins, it could have a negative impact on units sold. This will impact directly on revenue and thus growth estimates will have to be adjusted likewise. The business must find a balance between its pricing and revenue growth strategy to reach its target.

Evaluating and estimating revenue growth is a tricky and challenging process. It requires a lot of assumptions to be made and does not take into account unexpected events and scenarios. However from a historical perspective this metric can provide a reliable indicator to judge how the business has performed and what sort of average growth figures to expect.

Advice Strategy

5 Steps on How to Make a Decision

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“When you cannot make up your mind which of two evenly balanced courses of action you should take – choose the bolder.” William Joseph Slim

Over the course of this last week I have talked about the decision making process. This process can help us in making difficult decisions. The process forces us to take action and to move from one step to the next in a continuous flow. Standing still has to be avoided at all times. From a business perspective, not being able to make critical decisions or to keep delaying them, will eventually lose you any competitive advantage you may have had. The world unfortunately does not wait for us to find the right time or right opportunity to make a decision. Listed below is a methodology I use for decision making:

1. Objective Clarification: The first step when making a decision is to look at the larger picture. Decision making is not an isolated process of just meeting specific needs, it is one in which broader goals and aims have to be taken into consideration for the future. It is only after clarifying what we hope to gain or learn from the decision we take, do we move to the next step. To learn more on how to clarify objectives behind a decision please click here.

2. Data Collection: The second step involves getting all the facts and figures required to make a decision. This could include, research, surveys, feedbacks or any other form of data collection which would provide us with information to help make a decision. The truth is, it is not possible to have all the facts and figures specially in a time bound situation. Life is about making optimal choices based on, often incomplete information. One must not let lack of data hinder us from making decisions. To learn more about data collection please click here.

3. Listing Options: Once we have adequate data about decisions we have to make, the next step in the process is to develop a list of alternatives. The purpose of this list is to put down on paper different options available.There will always be several possible alternatives available when one has to make a decision.Making an endless list of possible alternatives is not wise, and frankly, will waste a lot of time. Be specific in what you want and develop your alternative list accordingly. To learn more about developing an option list please click here.

4. Evaluating Options: I use a simple model which helps rank options according to our objectives and weight-ages given to specific factors. This enables us to rank each option in an unbiased manner and helps to gauge how they compare against each other on a holistic level. This model is developed on the basis of the prior 3 steps discussed. To learn more about the model and how to use it for your decision making process please click here.

5. Making a Decision: After successfully completing the four steps outlined above, we reach a point where we should have enough information to make a decision. Most of the time, we will not have all the information required, life is all about making optimal choices based on incomplete information. We should not let this affect our decision making process. Once a decision has been made, one needs to take responsibility for it and ensure follow through. To learn more about the final step in the decision making process please click here.

If one were to look back at life, there are bound to be decisions which, in retrospect were not the correct one. The important thing to remember is not the fact that one made a wrong choice, but whether we learned from the mistake or not. We should not let past failures inhibit us from making similar decisions in the future. If one were to take such an approach,  very little progress forward would be made. As mentioned earlier, life is short, we need to have the courage of our decisions, confidence to trust our gut instincts, and keep moving forward. I wish you all the very best on all your life decisions in the future.

Advice Strategy

Can you make a decision?

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“In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.” Theodore Roosevelt

After weighing all possible alternatives, a decision making point is reached. This stage in the decision making process is where many individuals face problems. Some of the reasons I come across quite regularly for this are; there is inadequate information, I have received mixed reviews from feedback which has further confused me, I want to put this decision off for a while to think about it more, I cannot make this decision alone and, what if I make the wrong decision? These are all valid reasons to put off making a decision. However, if this becomes a recurring pattern in life, then, very little progress would be made when a difficult problem arose. 

Once our homework is done, and we believe we have adequate information about the decision at hand, we have to take a leap of faith. Waiting for the perfect situation, the perfect business opportunity or the perfect partner will invariably hold you back. We have to be proactive and want to move forward, this not only increases confidence, it provides invaluable experience and feedback. It is in moments of decision that we find out who we really are, and what we are made of. Use these opportunities to showcase your skills and abilities rather than shying away from taking responsibility. 

Once a decision is made, the next most important aspect of this entire process is, follow through. We have to be a 100% committed to the decision we make, and take full responsibility for it. This is not a time for excuses or getting cold feet. We must prove to ourselves, as to those affected by the decision that we have what it takes to execute the decision. If one makes a habit of changing one’s minds after taking a decision, this reflects poorly on character and value systems. In business, such a person would be deemed unreliable, and lacking the confidence required to take responsibility. Hence, next time you are put in a position to make a decision, do your homework well ,and when ready, make the decision and follow through. As an added benefit, the feeling one experiences after making a correct decision is amazing, and should be the end goal every time!