Business data does not mean much for a lot for small business owners. They usually make decisions based on past experiences and, most importantly, their gut. Sometimes, this way of making decisions may not affect the business much in the short run. However, this may cripple your possibilities of growth and expansion in the long run.
As business owner you need to know your own business in depth. I am not asking you to go to data mining, not at all. A basic understanding of your business can be done with the information you get and manage every day!
Let’s go over the basics of the information you can collect and analyze: Your business gross sales, profits; patterns, seasonality of your product, busy season, and inventory (among others). This data can give you a very basic understanding of your business and you can start getting to know it in depth.
All that data and information can help you to start getting to know your business very well. Thus, allowing you to standardize your product, know your process and product cost, to reduce and control your cost, and to know the amount of workers you need to deliver your product.
Data analytics is important for small businesses, it provides the information to have a better understanding of what is going on in your enterprise and help you better forecast and plan a better future for your company, help your bottom line and your business profit.