A successful business owner must be able to think on their feet, make quick and effective decisions, and adapt to changing circumstances. This requires a combination of knowledge and experience, as well as the ability to think critically and apply that knowledge in a practical manner. In other words, common sense and practical experience are just as important, if not more so, than theories in growing a business.
While theories and knowledge can certainly be helpful in growing a business, it is ultimately common sense and practical experience that are the most important factors.
Some of the important business decisions require common sense.
Hiring employees – choosing the right people to join your team requires good judgment and the ability to assess their skills, attitude, and fit within the company culture.
Setting prices – pricing your products or services too high or too low can impact your profitability and competitiveness. Common sense can help you determine the right balance based on market conditions, cost of production, and customer demand.
Allocating resources – effectively managing your time, money, and other resources is critical to the success of your business. Common sense can help you prioritize tasks, identify areas for improvement, and make smart decisions about where to invest your resources.
Building partnerships – forming strategic partnerships with other businesses can help you expand your reach and gain access to new markets and customers. Common sense can help you identify potential partners that align with your business goals and values.
Responding to changes – the business landscape is constantly changing, and common sense can help you adapt to new challenges and opportunities. Whether it’s responding to shifts in the market, changes in consumer behavior, or disruptions to your supply chain, common sense can help you make decisions that keep your business moving forward.
There are a few ways you can develop your common sense:
Learn from experience – the more experiences you have, the more opportunities you have to learn and develop your common sense. So, don’t be afraid to try new things, take risks, and make mistakes.
Pay attention to the world around you – observing the world around you can help you develop your common sense. Take note of what works and what doesn’t, and try to understand the reasons behind it.
Ask questions – if you don’t know something, don’t be afraid to ask questions. Asking for help or clarification can help you gain a better understanding of a situation and make more informed decisions.
Reflect on your decisions – after making a decision, take some time to think about why you made it and whether it was the right decision.
This can help you learn from your mistakes and improve your decision-making skills.
Practice good judgment – common sense is essentially good judgment, so practicing good judgment in everyday situations can help you develop your common sense. This might involve considering multiple perspectives, weighing the pros and cons, and making decisions based on facts and Logic.
Using common sense in business management can have several positive effects that can help your business grow faster, including:
Improved decision-making – common sense can help business managers make practical, informed decisions that are in the best interests of the business.
Enhanced problem-solving abilities – common sense can help managers anticipate and solve problems before they become major issues.
Increased efficiency – by making smart, common-sense decisions, managers can help their businesses operate more efficiently and effectively.
Stronger relationships – common sense can help managers communicate more clearly and effectively with their employees, customers, and other stakeholders, leading to stronger, more productive relationships.
Greater success – overall, using common sense in business management can help businesses achieve their goals and be more successful in the long run.
In choosing a team to work with, don’t just look for a bright certificate. Your business needs employees with a common sense among other things to deliver results.
Here are a few ways you can identify people who have common sense:
Observe their decision-making skills – people with common sense tend to make well-reasoned, practical decisions based on facts and logic.
They are able to weigh the pros and cons of different options and choose the best course of action.
Listen to their communication style – people with common sense tend to communicate clearly and effectively, using simple, straightforward language. They are able to explain complex ideas in a way that is easy for others to understand.
Notice their problem-solving abilities – people with common sense are often good at anticipating and solving problems before they become major issues. They are able to think on their feet and come up with creative solutions to challenges.
Pay attention to their interactions with others – people with common sense tend to have strong interpersonal skills and are able to build productive, positive relationships with others. They are good listeners, able to empathize with others and provide helpful advice.
Ask for their opinion – if you’re not sure whether someone has common sense, ask for their opinion on a particular issue or problem.
People with common sense are often able to provide thoughtful, well-reasoned answers that demonstrate their good judgment.