Data Analytics for Small Business: Use Numbers to Tell Your Business Story
Why is it important to analyze data analytics for small business? It’s about more than just understanding your financial information and knowing how much money you’re bringing in. Tracking and interpreting small business data analytics can actually help you tell your business’ story better - so you can grow, get more leads and land more clients.
Want to learn more about the importance of small business analytics and get tips on how to start using data in your business? I was lucky to talk with data analysis expert Julie Alig (of JLA Analytics in New Hampshire) on the Content Cash Machine podcast to explore how to uncover the stories that are buried within every business’ data.
Julie helps educate entrepreneurs on data analytics for small business to help them meet their goals and bolster revenue. You can listen to the latest episode to learn more about how to tackle your own small business data analytics - or keep reading to snag some of Julie’s best tips for yourself.
Why Data Analysis for Small Businesses?
The purpose of data analytics for small business is to collect and analyze key numbers within your business - things like revenue, where you get leads from, the results you get for your clients and more. Then, you can use that information to set goals and to increase your revenue.
Common Misconceptions of Small Business Analytics and Things to Avoid
You think you do not have enough data: Many small business owners feel like they don’t know where to start with data analytics for small business because they think they have no data to track. But every business has more data than they typically realize.
You think you can’t do math: You don’t need a grad school math degree to use data analytics for small business. You don’t even need to have done well in high school math. For the day to day operations of tracking data and running simple operations, you can Google how to do it (or YouTube it) every single time.
Top Tips on Data Analytics for Small Business
Start by determining the problem you’re trying to solve. Are you trying to better understand where your clients are coming from? Are you working to determine if your sales process is working? Are you trying to demonstrate the impact of your work on your clients’ businesses. No matter what you want to analyze, you need to start by knowing what you’re looking for.
Find out your sales data and profit margin - these are hidden gems! When it comes to data analytics for small business, tracking sales and profit data is a great place to start. While most business owners know how much money they’re bringing in, better understanding your sales process, where clients are coming from, where you’re losing them and which kinds of projects are bringing the most profit can significantly impact the direction of your business.
Look at your customer data and break down into the types of customers you have. Tracking your customer data is really beneficial and can help boost your revenue. It’s important to understand which types of customers or clients have the biggest impact on your bottom line, so you can seek more of that type of work in the future.
Explore marketing and sales data to discover what customers are already interested in. This is one of the best strategies to determine if your current offers are working and to figure out which services or products to offer next. If a product or service is far more successful than others, how can you leverage that data to sell more?
Simple Steps to Data Analysis for Small Businesses
Are you ready to start tracking your numbers and tell your brand story through data analysis for small business? Use these simple step by step tips below to get started with small business analytics.
Think about what questions you need answered
Figure out what data you already have
Analyze the numbers you do have and determine what additional information you need to help you determine how to answer the questions you have
Once you have the data needed to answer your questions, start developing your strategic plans and goals
Then dive in and start looking for more numbers to help you get there
Track your revenue and other key small business data on a monthly basis to track your progress
Final Thoughts on Data Analytics for Small Business from Julie Alig
“Don't be intimidated. You totally can do this. And hopefully with, you know, the conversation that we've had, people understand that this really can help you and help your bottom line.”
Connect with Julie:
Check out Julie’s website for more information or to schedule a consultation
Sign up for her newsletter and receive the 5 Steps downloadable guide for free!
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