Businesses and Data
Have you ever been overwhelmed by your own ideas? I assume that we have all been there the moment we decided to take the risk of becoming a business owner. However, I didn’t know that the confusion would follow me even after establishing the business. The amount of data that hit me was bigger than what I could have ever imagined. The word “business” itself comes from the derivation of the words “bisignis”(anxiety) and “busy” therefore it is no surprise that time is never enough and that a couple of wrong moves can be deadly for our establishment.
All Sources in One Spot
Just like most business owners we have repeatedly experienced mixed and lost data. Keeping up with every component that a business has is not an easy task. More often than not, the missing pieces in our reports stop us from having a clear picture of what’s working and what is not. As always, if you have these kinds of problems, our advice would be to try to digitize your data because humans make mistakes but computers don’t.
Having all of your data in one place is only half of the battle. What’s the point of having your data collected if it’s not comprehensive? Organizing data is whether is physical or digital has the duty to make your numbers and notes more useful. The quicker you invest in implementing good data organization the more will the future you be thankful.
What is Behind Numbers?
There are seven key financial numbers:
- Cash Flow
- Net Income
- Profit and Loss
- Price Point
- Gross Margin
- Total Inventory
Most of the consulting teams will focus on numbers but they rarely show how the numbers got there or identify every single variable into the equation. That is not exactly ideal because you miss opportunities and add losses because you end up backing up the wrong components. Also don’t shy away from following your gut because as Don Marquis put it “Ideas pull the trigger, but instinct loads the gun”. But then again how can you follow your instinct when you are misinformed?
There are a considerable number of beginning entrepreneurs who think that visualization is just extra fluff but the truth is when your data is organized in captivating visuals, you have the insight of everything you want regarding your business. Visuals let you take the right path on your company’s journey based on your historical data and how your decisions have affected different aspects of the past. Try to replicate success and avoid failure by exploring patterns down your path.
Get the Full Picture
Behind every decision there is a vision, therefore, establish everything you vision on your long-term goals. Short-term goals should be refreshed regularly because the set the action while the long-term goals set the vision. If you see that your short-term plans might have deviated from your long-term go back and try a different approach. We do not get to our long-term goals by accident, therefore, every weekly planning should be a small stone helping build our real target.
Make Decisions Based on Historical Data
When you have the entire view nice and clear laying right in front of you, decision making becomes a game changer. Doubts are easy to erase when having organized data because you truly understand what works for the company. This way you know what your strong points are and where you will need to sharpen your tools more.
Connect and Understand Customers
The impressive businessman Michael LeBoeuf would say ”Treat your customers like lifetime partners.” because at the end of the day he knew their importance. Owners are more often than not stubborn individuals because their establishment needs a strong mind in order to survive and grow. Even so, the customer is still the greatest asset that any company can have. Therefore if you notice that your customers require something that you might not be familiar with try to give it a shot. Times change and so do people. Your taste regarding your business could have been impeccable back in the day but if you want to push the limits, you must listen to your most loyal partners/clients.
As human beings, we historically overrated our competence to keep up with our surroundings. That is what made us evolve further. However, there are limits that we all have. When data surpasses your analytical abilities try to spice things up and ask for help. The solutions are already out there, you just need to take a look.