Wednesday, January 25, 2017

Using Data to Aid in Business Growth

Growing a business can be challenging, especially for businesses who are just starting out. One way that assists business owners in figuring out what’s working and what isn’t is looking at data. This can be data from website hits, marketing campaigns, sales, inventory, etc. Whatever you need can be available just by looking at data and understanding how it can affect the way your business is run.


(Curated from Inc.)

1.Set Business Objectives

Take a look at what your company is trying to accomplish and figure out what is working and what isn’t. Set realistic goals that can help in areas that need improvement or expansion and apply those to relevant data that can help in understanding the bigger picture.

“Spend time thinking about your company--what's your bottom line, what's influencing behaviors--and hone in on what information could help you make better decisions.”

2. Invest in the Proper Tools

In order to look at metrics based on data, the correct tools are needed to provide accurate information. Find programs that provide relevant data to the goals that were set. Keep sources and programs current so data can be stored properly to keep the business on the right path.

“It's likely you'll have data coming from multiple sources and programs, which can make analysis costly. So invest in tools and technology that will help you focus on quality collection, aggregation, and analysis.

3. Share Information Internally

Make the data accessible to those who can assist in this process. Share the information with various departments through the data collecting software or other means that will allow everyone to communicate accordingly. This will keep everyone on the same page and ensure tasks are being completed properly.

“When you share data, like customer information, with the broader team, you communicate and coordinate with less friction and operate like a well-oiled machine. Your small business will run a lot smoother when your team is in sync.”

4. Develop a Routine

Data can be very telling. After looking through the information that was collected, make it a habit to frequently check in and see what’s going on. Use intuition to guide your business in the direction you think is right, but pull up data to make sure decisions are going to be beneficial or harmful.

“The best way to start applying data analysis is to use your intuition to guide the process, then use data to tell you whether your gut is true or false.”

5. Test Ideas

Look at what the data shows and formulate tests to make necessary changes. Experiment with new ideas, strengthen plans that are working and come up with the best way to improve what isn’t working. After the testing phase, apply the results to the bigger picture and execute plans that will lead to long-term improvement.

“Small businesses have the advantage of agility. Look at your data and formulate tests and hypotheses. Then apply those actions as tests.”

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