How To Make Good Decisions In Business: The Most Important Skill

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Let’s talk about the single most important thing you need to start and grow a successful business and that is – a framework for making decisions.
 
Running a business means making a lot of decisions. Good decisions lead to success and bad decisions lead to failure.
 
On any given day, there’s a thousand things you could do to build your business but you only have to time to a few of them. How do you decide what to do.
 
When it comes to day to day management of your business, you need to use a simple framework to make decisions and prioritize tasks.
 
This is the simple way to look at your business: You need to create a product, you need to create awareness of the product then you need to convert some of these people into customers.

What is a PAC strategy?

This is a simple planning concept that I invented that allows me to see the most important parts of my business on one   screen so that I can make better decisions and allow it to be organically updated daily.
 
The most important things I just said are: most important parts of the business, all on one screen, make better decisions, organically updated daily. Now, let’s get into the specifics. 
 
PAC stands for Product, Awareness and Conversion. 
 
Most business models look something like this. You need to have a product to sell, you need to generate awareness of the product then you need to convert some of those people to customers.
 
Now, you can replace the word product with services and you can replace the word awareness with traffic. It’s all the same thing.
 
It’s critical for you to understand that you need to optimize all three of these.
 
I’m sure you can see that the best product on the world will not sell if your site doesn’t receive any traffic and all the traffic in the world won’t generate sales if your conversion strategy doesn’t work.
 
If you do happen to get a lot of traffic and you do a good job of converting them to sales but you’re selling a crappy product, you will make sales in the short term but you will get bad reviews, you’ll have a lot of refunds, your payment processor will shut you down, you’ll get black listed in multiple places and people will sue you.
 
So you need to optimize all 3 of these.
 
One of the most common reasons that businesses fail is that they only do a good job with one or two of these.
 
Your success will always be limited by your weakest link in this sequence.
 
I repeat, your success will always be limited by your weakest link in this sequence. You have to optimize all of them.
 
As always, the best way to demonstrate a concept like this is with a simple example. 
 
Watch the video (starting at ) to see me create a PAC strategy for a business in Trello (a free tool) in real time in just a few minutes.
 
PAC strategy is like a practical business plan that you will actually use everyday. It can be adjusted daily. It will show you the big picture as well as the tasks for today in one screen.
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