Intuition and instinct are a major part of business management and decision-making, but one should never discard reason and experience in favor of a hunch, according to the Young Entrepreneur article “How to Sharpen Your Decision-Making Skills.” Like anything else, it’s all about balancing opposing factors. Thinking about expanding, adding to products and services, or making another big decision? Utilize these strategies in your thought process before taking the plunge:

1. Analyze your risk. If you’ve got an intuitive idea that you can pursue without much risk, it’s probably worth going for it. You won’t lose much if you’re wrong, and it’s a good way to test your instincts. But when the stakes are higher, you should likely take your time and analyze the prospects in a more detailed and scientific fashion.
2. Examine the motivation. Don’t let your emotions get the best of you. Take a step back and scrutinize the situation that led to your decision. If a decision is based on fear, anger, or other negative emotions, let some time pass and make sure you feel the same way once you’re back to a level state of mind.
3. Avoid “me too” syndrome. Avoid the temptation to go with the crowd – or at least wait until there’s evidence that it’s a good idea. Just because everybody is doing something, doesn’t mean it’s right. Sometimes doing the opposite, or standing pat, and separating yourself from the crowd can be a better strategy.
4. Pay attention to persistent hunches. If you’re stuck on an idea but it seems like a bit of a stretch, try to find a way to test it or implement it in a fashion that minimizes your risk. The greatest ideas are always the ones that nobody else expected to work – but that doesn’t mean you should bet the house on a risky proposition. Examine the possibilities for a pilot program, or test run, of sorts to lower the stakes.

Click here to read the entire article from Young Entrepreneur.