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Six Steps to Problem Solving Model For Entrepreneur

HI, today we talk about the Six Steps to Problem Solving Model For Entrepreneur.It is (problemsolving) a structured approach to addressing a problem and can lead you to the best solution to a problem.

Six Steps to Problem Solving Model For Entrepreneur

Six Steps to Problem Solving Model For Entrepreneur

A formal problemsolving model helps people solve problems in a logical manner. The model consists of six steps.

Step 1 Define the Problem
Before you can solve a problem, you need to diagnose it. Write down what the problem is. Try to quantify it also. For example, you may be trying to decide whether to start your own business or work for another company. If you accept the job offer, your income would be $30,000 a year. If you reject the job offer, you would lose that income. Quantifying the problem helps you figure out how much it is worth to you to solve it.
Step 2 Gather Information
Once the problem has been defined, you need to gather information that could help solve it. Relevant information may be obtained from many sources, including company records, industry data, and trade magazines. It is also a good idea to interview other people in the industry to find out what their experiences have been and to learn how they have solved similar problems.
Step 3 Identify Various Solutions
Most problems can be solved in various ways. Identify all possibilities before you settle on a particular solution. Dan comes up with several possible solutions to his problem.
1. Work as an employee in a position that utilizes his customer service skills and management experience.
2. Work as a website designer for another company to gain more experience and then start his own business in three to five years.

3.Pursue his interests in the food industry and open his own restaurant.
4. Start his own website design company upon graduation

Step 4 Evaluate Alternatives and Select the Best Option
The decision maker next needs to evaluate the alternatives to determine the best solution. In some cases, it may be possible to quantify the costs and benefits of each alternative. In other cases, quantifying each alternative may not be possible, and the decision maker may simply have to rank each alternative. Dan ranks option 1 the lowest because of his strong desire to be his own boss. All of the information that Dan gathered indicates that he has a strong chance of succeeding as an entrepreneur. He ranks option 3 next to lowest. Dan has considerable experience in the food industry and enjoys that type of work, but he decides he would rather pursue his interests in website design. He ranks option 2 seconds because he is already confident in his level of computer knowledge and experience. After evaluating all
of his alternatives, Dan decides option 4 is the best solution.
Step 5 Take Action
Once you have selected the best solution to the problem, you need to take action to implement it. Dan begins putting together a business plan and spreading the word about his new venture.
Step 6 Evaluate the Action
The problemsolving process is not complete until you evaluate your action since even a well-thought-out solution may not work. After being in business for six months, Dan evaluates whether he is achieving his financial and nonfinancial goals. It seems that Dan made the right decision because his business is profitable and he is enjoying his work. Dan will continue to use the problemsolving model to make the most effective decisions for his new business.

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