Business problem solving steps, my way out of trouble by a rank amateur that has been there , done that and survived the journey
You are the best judge of a situation
As business people we all come across problems of different sorts at different times in the Journey.
Believe me I have seen them all and every day talk to people with the world on there shoulders.
It destroys you and your home life when you are always consumed with a monkey on your back.
First of all I am no professional expert however a few decades in business have given me some in-site into handling situations.
In fact I am in the middle of a situation at this very moment that prompted me to write this short post to try and help others.
Action is the first and most vital step to your problem
The longer you brood over an issue the worse it becomes, therefore the answer must be doing something about it.
It may be cash management, always a big one or any range of difficulties that affect your life and turn it upside down.
Someone must take ownership and that someone is you.
Understand the issue and make plans to change
When an issue is clearly defined you can begin to plan your way out of the mire.
Cash shortage is not the problem, nor is staff moral . these are simply results of a much deeper problem that requires exact definition.
A cash flow chart projected into the future will show trends and problems well before they appear. Therefore the problem may be the sales area, cost of sales area or the expense line.
If one of these has gone haywire then you can understand the root of the problem.
When staff moral is low that is again the result of an issue that is much deeper.
If it is equipment failure then again it is a result of something further down the line .
Even slow sales is a result of an event or action that has created the issue.
Therefore understanding the real issue is the start of the journey
What are the ways out of the problem
When you have identified the problem you need to analyse the issues and look at which ones to change that will offer the most significant chance of success.
Using low sales as an issue (and hence cash flow problems) we would dig a lot deeper and look at what of our projections created the shortfall.
Seasonal issues, even the current covid-19 problem and lockdowns may be creating a downturn in our projections.
My side note
As a side note here, if you have not done your planning and cash projections then now is the time to do them, create an excel spread sheet and do a 12 month projection of what is a reasonable expectation.
This may apply to staff levels, costs and sales or anything that will influence the outcome.
I take my cash down to a daily snap shot so that I can be prepared for change. Include seasonal influences and holiday periods where things can be different. You can look ahead and see the road bumps and make early decisions to change.
Tools to help
Business problem solving steps with tools.
One common tool is the SWOT analysis to clearly establish what can be changed.
This should clearly identify the hub and set a theme of change.
An imaginary example based on a reality:
A product I sell is being phased out by my supplier so it will no longer be available
My strengths: I have been selling the product for years and I have a good customer base.
Weaknesses: Identifying new target customers is difficult because it is a unique product
however my current base needs to be supported
Opportunity: Look for a new supply company at reasonable prices and advanced features to
capture a broader customer range.
Threats: It is an untested product and I need early customer acceptance that they will
change to the new product and accept pricing difference.
Best case is greater income and customer support worst case is severe decline in revenue.
My way out of the issue
I actively looked for a new supplier or ways to achieve what I wanted. Eventually I found someone that had a completely novel way of achieving what I needed, however it came at a hefty price because they had to find a way to tie in three products to create a single solution.
We arm wrestled the pricing to something more agreeable and I went to my customers and explained the situation. Having got the green light to go ahead we started product development.
In doing so we discovered a wider range of ways to use the product and thus broadening the customer range, increasing sales potential which was good for both of us.
This looks to be a simple problem with an easy solution however it caused a few nights of lost sleep and a complete mind shift to change the ways I had worked for many years.
We could have walked away from the issue and taken the results however I wanted more than that.
The issues I achieved in my planning. A 10 step approach
| Identify the issue | Be quite clear about it |
| Conduct a swot analysis | Opportunities won the day |
| Gather a team to work a solution | Everyone working together |
| Do market research | Understand the future |
| Model the financial aspects | Be as tight as possible |
| Work out the cash flow | Use a projection |
| Obtain customer acceptance | Great feed back |
| Goal alignment | Every one can be a winner |
| Share your journey | Keep everyone informed |
| Analyse results | Celebrate the journey |
Business problem solving steps to a simple fix
How are you going to fix your problem
Use the steps above to answer the questions that need to be resolved. Finding the critical issue is often the hardest part so break it down into little steps.
- Clearly define the issue
- What is actually causing the issue
- Where did my planning change direction
- Who can I enlist to help going forward. The team approach
- What tools do I need to use
- Clearly define the results you want
- Set a timeline and destination path
- Check the progress
- Adjust as needed
- Come to a great conclusion
These steps can be applied to business and personal problems. Worry is not the answer.
An action plan will identify the problem and bring it to a conclusion. The answer may not always be a positive one however it will be an answer you can act on.
Conclusion to problem solving
This blog was started because I had a real issue and wanted to go over the steps I took to come to a successful outcome.
I did my research and tracked the steps to see If I was going in the right direction.
The answer was successful in this case however it really was about working through the elements to achieve an end result.
Hey Peter,
Great article there about business problem-solving steps.
I particularly loved and even jotted down the SWOT analysis insight. Indeed having the Strengths, Weakness, Opportunities, and Threats abreast is very crucial for accomplishing a targeted solution. The steps shared on how to answer the questions that need to be resolved are also very illuminating. I’ll be sure to practice most of your highlights discussed.
Thank you for this great article. I will definitely share your article with my friends!
All the best,
Sergej
Thanks Sergej your comments are appreciated.
I hope I added something positive to your knowledge base.
Kind regards
Peter H
Hi Peter,
I want to commend you for writing this post and trying to help business entities learned problem solving strategies to lead them out of trouble. You have hit the points and given proper recommendations.
I have also been engaged with other technical and financial partners to several micro small firms for 27 years and they have been really having trouble solving problems being faced with.
There has also been times that after diagnostic reviews and confirming the problem seen with the management, some are finding it hard to implement the recommendations.
Several reasons and some limitations. But I observed that those who diligently followed recommendations resolved problems and observed growth.
Proper consideration and implementation of what you laid will sure bring these business entities out of their problem.
Thanks Rose your comments are appreciated.
So often we see people go about the issues all the wrong way and create a bigger problem rather than solving them. Sometimes it takes time and effort however the results are mostly worth it.
I am glad I kept you entertained.
peter H