How to Make Good

Business Decisions
How to Make Good
Business Decisions

Dr. J.C. Baker

How to Make Good Business Decisions

Copyright © Business Expert Press, LLC, 2021.

Cover design by Charlene Kronstedt

Interior design by Exeter Premedia Services Private Ltd., Chennai, India

All rights reserved. No part of this publication may be reproduced,

stored in a retrieval system, or transmitted in any form or by any
means—electronic, mechanical, photocopy, recording, or any other
except for brief quotations, not to exceed 400 words, without the prior
permission of the publisher.

First published in 2021 by

Business Expert Press, LLC
222 East 46th Street, New York, NY 10017
www.businessexpertpress.com

ISBN-13: 978-1-63742-064-5 (paperback)

ISBN-13: 978-1-63742-065-2 (e-book)

Business Expert Press Business Career Development Collection

Collection ISSN: 2642-2123 (print)

Collection ISSN: 2642-2131 (electronic)

First edition: 2021

10 9 8 7 6 5 4 3 2 1
 Description
How to Make Good Business Decisions is a book to assist people with
thoughts surrounding essential aspects of finances and business. Much
of the decision-making for people derives from experiences and exposure.
The ability to see multiple perspectives allows for a higher level of under-
standing, increasing common sense perception. The common belief for
the concept of common sense is a general acceptance as a usual occurrence
or stance among people. However, reality demonstrates that people view
topics very differently. Technology and varying media outlets create many
avenues for information leading to conflicting positions and confusion.
This book provides a straightforward method of removing distortions
among education, business practices, finances, and ownership. There are
countless variables, obstacles, and barriers inherent in life’s journey, and
operating with common sense will alleviate many issues.
However, exposure to information, experiences, and education
redefines what is “common.” Readers will learn how their thoughts,
viewpoints, and focus shape their responses and navigation through
important decision-making realities. This book serves as a tool for
increasing decision-making.

Keywords
common sense; decision making; education; business; finances;
ownership; team building; interdependence; meta-cognition
 Contents

Book Overview��������������������������������������������������������������������������������������ix

Chapter 1 Introduction���������������������������������������������������������������������1
Chapter 2 Train of Thought��������������������������������������������������������������5
Chapter 3 Straight A’s����������������������������������������������������������������������17
Chapter 4 Free T-Shirt��������������������������������������������������������������������33
Chapter 5 H2O�������������������������������������������������������������������������������43
Chapter 6 Golden Rule�������������������������������������������������������������������53
Chapter 7 Mine or Yours�����������������������������������������������������������������63
Chapter 8 Interdependence�������������������������������������������������������������77
Chapter 9 Why�������������������������������������������������������������������������������87

Notes�������������������������������������������������������������������������������������������������101
References�������������������������������������������������������������������������������������������105
About the Author��������������������������������������������������������������������������������111
Index�������������������������������������������������������������������������������������������������113
 Book Overview
How to Make Good Business Decisions

The nine chapters are broken down as follows:

Chapter 1: Introduction

Chapter 2: Train of Thought

This chapter begins the foundation for thought throughout the book.
Aspects such as logic, linear reasoning, free thought, meta-cognition, and
programmed thought are outlined. Challenging the basis of the origin of
a person’s thinking process sets the occasion for understanding.

Chapter 3: Straight A’s

This chapter explains how all aspects of accomplishment is the product

of a process. The common-sense aspect to realize is how to recognize and
execute the appropriate procedure for the situation. With an educational
analogy, the imagery of process implementation assists with successful
thinking.

Chapter 4: Free T-Shirt

This chapter provides detailed insight into the concepts of opportunity

cost and risk. In decision making, it is common to face either/or reali-
ties. It is also common for people to miss the trade-off associated with
making choices. The financial analogy creates a picture of how the lack of
­forethought can be a substantial cost.
x Book Overview

Chapter 5: H2O

This chapter teaches the importance of flexibility, agility, and awareness.

People struggle with common realities based on situations, surroundings,
or circumstances. Having a mentality to adjust and the willingness to see
varying perspectives bodes well for anyone seeking universal success.

Chapter 6: Golden Rule

This chapter speaks to an enhanced version of how to interact with peo-

ple. The common sense take-away is how to see each connected relation-
ship from a different worldview increasing relational success. The price of
poor relationship building is more costly than any other tangible reality.

Chapter 7: Mine or Yours

This chapter outlines ownership and commitment. Commonly, the

boundaries ownership are misconstrued and violated. The challenge in
this chapter is to reflect on common thoughts surrounding ownership,
governance, and responsibility.

Chapter 8: Interdependence

This chapter teaches the importance of understanding the universal law of

interdependence among all things. It is common for people to believe that
their efforts are individualized and primarily have a personal effect. An
inclusive paradigm will lead to increased relational and personal success.

Chapter 9: Why

This chapter is the culmination of how to measure every thought regard-

ing decision making. The “why” of anything governs our position, per-
ceptions, and perceptions. Asking this question surrounding all things
increases understanding and wisdom, leading toward a more healthy and
inclusive life.
 CHAPTER 1

Introduction
How to Make Good Business Decisions is a book to assist people with
thoughts surrounding essential aspects of a business. The premise of the
book covers common sense or basic sense approaches to all decision-mak-
ing matters. Conceptually, common or basic sense is simple. I submit that
common sense is a complicated philosophy owing to the many layers of
personal learning and influence. What is common to one individual can
vary significantly to another person. This is undoubtedly the reality in
business. A good business decision for a venture capital group is measured
differently from that of a nonaccredited investor, even if the criteria for
investing are similar. The venture group may weigh the impact on the
entire portfolio of investments and other investments they are consider-
ing. A nonaccredited investor may weigh the ability to leverage a relation-
ship or participate in an industry of interest.
Much of the decision making for people derives from experiences
and external exposure. The ability to see multiple perspectives allows for
a higher level of understanding, increasing the perception of common
sense. The standard belief for the concept of common sense is a gen-
eral acceptance as a usual occurrence or stance among a group of people.
However, reality demonstrates that people view topics very differently.
In today’s climate, there are many avenues for information leading to
conflicting positions and confusion. This book provides a straightforward
method of removing distortions among education, business practices,
finances, and ownership. There are countless variables, obstacles, and bar-
riers inherent in the journey of life, and operating with a strong philo-
sophical base alleviates many issues. However, exposure to information,
experiences, and education redefines what is “common” and constitutes
good decision making. This work highlights how people’s thoughts, view-
points, and focus shape their responses and navigation through important
2 How to Make Good Business Decisions

decision-making realities. This book serves as a tool for increasing the

essential business acumen for all people.
The decision-making process is not an in-the-moment action but the
culmination of continued thought over a life-span. Family dynamics,
educational training, past experiences, personal characteristics, respon-
sibility level, and outcome expectations are variables attached to deci-
sion making. These characteristics are the same for a person’s baseline for
common- or basic sense. The aspects of decision making explored in this
work are not connected to business ethics but to prevailing thoughts sur-
rounding basic concepts. If a business owner seeks to make a budgetary
decision for a company, this decision derives from the individual’s per-
spective about money, risk tolerance, impact to the company, retribution
back to the decision maker, and the obligation to the company. Each one
of these factors carries the weight of previous perspective programming
for the individual.
Many business owners and division leaders experience failure due to
the inability to make quick, simple, and sound decisions. The common-
or basic sense aspects of decision making increase with repetition, infor-
mation, knowledge, and understanding. Elements such as fear, ignorance,
pressure, and hope are factors of poor decision making. Therefore, good
decision making for business owners comes from intentional thought and
decision practice. The sum of progress and growth extends from the abil-
ity to make and manage decisions at the fundamental level. Just as the
case in athletics, acting, or the arts, the phrase perfect practice makes
perfect applies to decision making. Decision making is a skill that has to
be practiced, measured, and analyzed. The fundamentals of good decision
making are a product of practice in a particular realm. As a Business Doc-
tor and the CEO of a global consulting firm, I witness the errors and the
genius of business owners around the world. One common aspect is that
barriers, obstacles, and decision making intertwine the daily operations of
companies and small businesses alike.
Fundamentally, making good decisions is the most critical element
for sustainability and longevity. To speed up the process of good deci-
sion making is the product of common sense leaning on muscle mem-
ory from practice, problem recognition, and the understanding of the
range of results. Making a future decision is directly connected to past
 Introduction 3

programming. A healthy knowledge of previous choices, coupled with

well-thought-of goals, sets the occasion for sound decision making. Rec-
ognizing how you think and how those thoughts connect to other aspects
is a significant step in increasing decision-making skills.
Chapter 2, Train of Thought, begins the foundation for thought
throughout the book. Aspects such as logic, linear reasoning, free thought,
meta-cognition, and programmed thought are outlined. Challenging the
basis of the origin of a person’s thinking process sets the occasion for
understanding. Discovering the rationale as to how you process your
thoughts and interpret experiences is necessary for viewing decisions in
the proper perspective. Establishing a core concept, primary product, or
generating ideas, processes, and services extend from how information
and thoughts are processed. The train of thought is a natural course of
thinking governing the overall decision making for a person.
Chapter 3, Straight A’s, explains how all aspects of accomplishment
are the product of a process. The common-sense aspect to realize is how to
recognize and execute the appropriate procedure for the situation. With
an educational analogy, the imagery of process implementation assists
with successful thinking. The following chapter Free T-Shirt, provides
detailed insight into the concepts of opportunity cost and risk. In deci-
sion making, it is common to face “either this/or that” realities. It is also
common for people to miss the trade-off associated with making choices.
The financial analogy creates a picture of how the lack of forethought can
be a substantial cost.
The H2O chapter teaches the importance of flexibility, agility, and
awareness. People struggle with every-day realities based on situations,
surroundings, or circumstances. Having a mentality to adjust and the
willingness to see varying perspectives bodes well for anyone seeking uni-
versal success regardless of climate. The Golden Rule chapter speaks to
an enhanced version of how to interact with people. The common sense
take-away is how to see each connected relationship from a different
worldview increasing relational success. The price of low relationship
building is more costly than any other tangible reality. Decision making
increases once relational dynamics are understood and accepted.
The chapter entitled Mine or Yours outlines ownership and com-
mitment. Commonly, boundaries of ownership are misconstrued and
4 How to Make Good Business Decisions

violated. The challenge in this chapter is to reflect on common thoughts

surrounding ownership, governance, and responsibility. Following this is
the chapter titled Interdependence. This chapter teaches the importance
of understanding the universal law of interdependence among all things.
It is common for people to believe that their efforts are individualized
and primarily have a personal effect. An inclusive paradigm will lead to
increased relational and personal success.
The final chapter, Why, is the culmination of how to measure every
thought regarding decision making. The “why” of anything governs our
position, perspectives, and perceptions. Asking this question surrounding
all things increases understanding and wisdom, leading toward a more
healthy and inclusive life.
Business owners and prospective owners face either life-changing or
business-changing decisions daily. Working to get a business to market
involves decisions in personal finances, career aspirations, family implica-
tions, and time management. Launching a new product includes decision
making surrounding budget restraints, opportunity costs, employee wel-
fare, branding considerations, and company sustainability. Each chapter
contributes to the enhancement of increased decision making through
intentional analysis of common sense.
 Index
Academic decision making, 13–14 free T-Shirt, 38–39
Affective commitment, 71, 72 influential, 11–13
Analytic thinking, 6–7 initial business, 21–22
Anchoring, 97 self-awareness and your, 96–100
Application programming interface Decision point analysis, 26
(API), 83 Democratic leadership, 56
Authority, 10 Dependent (part-time) entrepreneurs,
Autocratic leadership, 56 51
Automotive consulting, 44–45 Design-thinking approach, 7
Automotive thinking, 8–9 DMAIC methodology, 28–29

Brainstorming, 6 Economic decision making, 14–15

Business Economic Injury Disaster Loan
decision making, 21–22, 38–39 (EIDL), 66
ownership, 21, 22, 42, 64 Economic theory, 35
relationships, 55, 60, 61, 74, 85 Education, 1–3, 19–21, 23, 25, 30,
Business PhysicalTM, 68 34, 35, 39, 89
Establishing governance, 69
Coercive power, 58 Expectancy Theory, 36
Cognitive biases, 6 Expectation, 22–25
Commitment, 71–74 Expert power, 58
Common sense, 1–4, 8, 10, 17, 21,
24, 25, 30, 31, 34, 37, 39, 44, Family-owned business, 66
48, 53, 55, 57, 58, 65, 71, Family-run business, 67
79, 100 Finances, 1, 4, 28, 37, 38, 42, 90, 94
Confirmation, 97 Formal governance, 69
Consensus, 10 Forrester effect mapping, 26
Consistency, 10 Framing, 97
Continuance commitment, 71, 73 Free T-Shirt, 33
Continuous improvement, 25–31 decision making, 38–39
Corporate entrepreneurs, 51 investment tolerance, 39–42
Corporate governance, 69–70 opportunity cost, 33–37
Corporate Social Responsibility price and, 37–38
(CSR), 67 French, J. P., 58
Cost, opportunity, 33–37
COVID-19, 46, 66, 93 Golden Rule, 53–54
Critical thinking process, 97 individual respect, 54–55
leadership style, 55–57
Decision making, 1–10, 17–19 power exertion, 58–61
academic, 13–14 Governance, 69–71
biases, 96–97
business, 21–22, 38–39 Idealized influence, 11
economic, 14–15 Improvement process, 25–31
114 Index

Individual respect, 54–55 Proactive entrepreneurs, 51

Influential decision making, 11–13 Process activity mapping, 26
Initial business decision making, Production variety funnel, 26
21–22
Interdependence, 77–82, 84–86 Quality filter mapping, 26
pooled, 82
reciprocal, 83–84 Raven, B., 58
sequential, 82–83 Reactive entrepreneurs, 51
Investment tolerance, 39–42 Reciprocal interdependence, 83–84
Reciprocity, 10
J.C. Baker & Associates, 13, 36, 44, Referent power, 58
79 Reward power, 58

Kaizen, 27–28 Scarcity, 10

SEIKETSU-SEIKETSU, 27
Laissez-Faire, 56 SEIRI, 27
Leadership style, 55–57 SEISO, 27
Lean management, 29–30 SEITON, 27
Legitimate power, 58 Self-awareness, 96–100
Letter getting process, 18–21, 23 Self concept, 80
Liking, 10 Self-justification, 97
Limited Liability Company (LLC), 65 Self-serving, 97
Sequential interdependence, 82–83
Managerial variables, 48 Shared leadership, 55
Mental ownership, 63 SHITSUKE, 27
Meta-cognition, 3, 6, 9, 14, 15, 17, Six Sigma, 27–28
19, 21, 45, 47, 54, 77, 79, 81, Stewardship, 63
88, 90, 92, 94, 98, 100 Strategy variables, 48
Motivation, 22–25 Supply chain response matrix, 26

Normative commitment, 71, 73 Team building, 95

Tolerance, 39–42
Operational variables, 49 Transactional leadership, 56
Opportunity cost, 33–37 Transformational leadership, 11, 56–57
Organizational commitment, 72, 74 Treasure hunt approach, 15
Ownership, 63–69
Value stream mapping (VSM), 26
Paycheck Protection Program (PPP), 66 Vision mapping, 85
Personal protective equipment (PPE),
46–47 “Why,” 87–88
Persuasion, 9–10 application, 90
Physical structure mapping, 26 ham, 88–89
Pooled interdependence, 82 problem, definition of, 91–92
Power exertion, 58–61 process, 93–96
Price, 37–38 self-awareness and your, 96–100