How to Use Simple Micro-Economic Principles to Guide Your Business Decisions
Good economic decision-making revolves around the objective to maximize benefits while minimizing costs.
By John V. Guiliana, DPM, MS
A medical practice is a small or large business the success of which ultimately depends upon good decision-making strategies. Unfortunately, in many practices, the decision-making process is often reactive and not proactive. Small business owners and managers often do not have time to think through the pros and cons and assess the value of their choices. Often, they are forced to make decisions under pressure. Sometimes, it’s not the right or best decision. Various economic principles help managers analyze their decision-making process. Almost everyone engages in economic decision-making at some point, from the billionaire investing in the stock market to the solo medical practice owner signing a contract with an insurance carrier. Basic micro-economic factors almost always come into play. For managers and owners, the best types of decision-making strategies are ones that are based on a process that can be used over and over again. A thorough understanding of micro-economic principles is also essential to good business decision-making.Continue Reading