Established small and medium business owners often have to deal with obstacles along the way, such as their sales and profits levelling off, or their companies not growing as fast as they had in the past. These are common issues that many businesses face. While it can be tough to break through this period of stabilization, there is one tactic that could help: Analyzing your previous data to spot patterns that can help shed light on how your business is doing.
In order to move your business forward and grow, you should analyze and try to interpret the data in your organization. This includes everything from previous financial statements, year-on-year sales figures and numbers, and even KPIs or estimated Vs actual figures. By looking into this data, you will eventually begin to find patterns which can be useful in not only helping you figure out the current state of your company, but in identifying where it is going.
Most experts agree that there are four reasons businesses should be analyzing their data:
Essentially, when you track and analyze your data you should be able to spot potentially important patterns that can allow you to make better decisions, quicker, and usually with more accuracy. It is the analysis of patterns that also makes up an important part of Business Intelligence.
Many small to medium businesses generate a wide variety of data, and it can be a challenge to narrow down what data types and patterns to look for. To start with, many businesses focus on three main patterns:
Many businesses rely on spreadsheet software, such as Excel, to store, manipulate, and visualize data, to ultimately spot patterns. But this requires a fair amount of effort to establish and maintain, and as the spreadsheets grow, operations can slow down.
One option many businesses explore is utilizing Business Intelligence software, which allows businesses to easily track data and identify patterns, among other uses. There are a wide variety of programs, so if you are looking to begin tracking data and analyzing patterns, try contacting us today to see what solutions we have for you.