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A few years back in my college Algorithms class, we were discussing different ways to find out what the optimal solution is to complicated problems that can't be solved directly (Multivariable Optimization Algorithms). One of the most basic ways to do that was a Greedy Algorithm.
In other words, we can't tell which decision will lead to optimal results in the long term because we don't know how things will play out. The solution? Consider what your immediate choices are in your current state, and make the decision that will lead to the most immediate gain from your current state.
So make the decision that yields the best results today. Here's how:
1. Write down your current state. X in sales, Y in costs (break down sales and costs if you're in business). 2nd Best Product, Unreliable Vendors, Unstable Cashflow.
2. Write down what you think are your 3 top changes/decisions/initiatives you can take. Go with your gut.
3. Analyze what would change in profit if you took each decision. Replacing Vendor C with someone more reliable would save $4k/month guaranteed. Fixing customer complaints would make us #1, making us an additional $12k/month once word spreads. I have no ads but at an average 2.9x ROAS, if I ran FB ads I'd make $8k more a month. If I increase the value of my current customers by adding a second product line I can make an additional $20k/month. etc...
4. Take the decision that would yield that largest immediate positive change. If you 20 years experience in your field, yes you might know that a certain decision doesn't yield anything at first but is the biggest key, but if you have little experience you don't know how things will play out.
5. You're in a new state now. Take the best immediate decision again. Repeat steps 1-5.
Yes there are more advanced algorithms that might get you better results, but when I'm feeling overwhelmed and can't think clearly, this is always the best decision making framework for me. Keep It Simple Stupid.
What is a Greedy Algorithm?
Wikipedia Jargon: "A greedy algorithm is any algorithm that follows the problem-solving heuristic of making the locally optimal choice at each stage. In many problems, a greedy strategy does not produce an optimal solution, but a greedy heuristic can yield locally optimal solutions that approximate a globally optimal solution in a reasonable amount of time."In other words, we can't tell which decision will lead to optimal results in the long term because we don't know how things will play out. The solution? Consider what your immediate choices are in your current state, and make the decision that will lead to the most immediate gain from your current state.
The Business Greedy Algorithm
Sales, product, changing market demands, vendors, etc, etc... There are so many variables in a business that overthinking what your next step is, it's consequence, the possible 2nd steps are, their consequences, 3rd steps.... It's a one-way ticket to decision paralysis where nothing gets done, especially in a field you have no personal experience to draw on from and you have 15 other things on your mind.So make the decision that yields the best results today. Here's how:
1. Write down your current state. X in sales, Y in costs (break down sales and costs if you're in business). 2nd Best Product, Unreliable Vendors, Unstable Cashflow.
2. Write down what you think are your 3 top changes/decisions/initiatives you can take. Go with your gut.
3. Analyze what would change in profit if you took each decision. Replacing Vendor C with someone more reliable would save $4k/month guaranteed. Fixing customer complaints would make us #1, making us an additional $12k/month once word spreads. I have no ads but at an average 2.9x ROAS, if I ran FB ads I'd make $8k more a month. If I increase the value of my current customers by adding a second product line I can make an additional $20k/month. etc...
4. Take the decision that would yield that largest immediate positive change. If you 20 years experience in your field, yes you might know that a certain decision doesn't yield anything at first but is the biggest key, but if you have little experience you don't know how things will play out.
5. You're in a new state now. Take the best immediate decision again. Repeat steps 1-5.
Not going anywhere?
In a greedy algorithm your end result is based on the randomly chosen starting point. So if you don't like the end result... choose another starting point until you end up with a result you like.Yes there are more advanced algorithms that might get you better results, but when I'm feeling overwhelmed and can't think clearly, this is always the best decision making framework for me. Keep It Simple Stupid.
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