- Cause and effect diagram can help you define the causes of business problems
- After you define and analyze the problems, you can start solving them
It does not matter what business you own, micro or macro, startup or already famous company, reseller or plumbing, you face thousands of challenges and problems. Every business is a long trip with loads of obstacles on the way. If you do not pay attention to them, you will fail. Each obstacle teaches you what you should change your business model to reach success.
The problems are various. Recently, Inc has defined 9 steps that will help solve these problems. However, following these steps won’t be enough to become successful. If you feel that you have some problems but you have no idea what these problems are and how they can affect your business, there is a thing that can help you.
Cause and effect analysis is just what you need in order to understand the real situation in your business. Perhaps, there are some obvious things that you just don’t notice or maybe there is something more complicated that requires the efforts of the whole team. In this article, we are going to tell you how to use cause and effect analysis to your benefit, so read on!
What is a cause and effect diagram?
Did you know that only 50% of all businesses survive 5 years and longer? There are different reasons why they fail, but we are sure that in most cases, the reason is the lack of understanding of the real situation in the company. Half the problems could be solved if the entrepreneurs knew about fishbone diagram.
In fact, fishbone diagram is a cause and effect diagram and it got its name due to its form.
This diagram appeared in the ‘60s and it is still relevant so you can be sure: if you use it, you won’t fail.
The diagram suits any type of business. However, there is one thing that you should know. While working on the diagram, you need to use actual, relevant, and truthful data, otherwise, you’ll just waste your precious time and get nothing in return.
How to start?
First and foremost, you need to identify the problem. This is perhaps the most complicated step, as eventually, you may find out that the problem is absolutely different from what you thought it would be or that it contains a huge variety of smaller problems that also need to be solved.
Identifying the problem may be compared to creating a topic for your PhD. From one point of view, you have the essay writer or cause and effect essay topics list and you can choose any of them but from another point of view, you understand that you need some out-of-the-box ideas.
Don’t hurry to understand what problem you want to solve now. It’s better to spend more time on this step to prepare for the following actions.
For example, your main problem is the lack of brand awareness among the customers.
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