Making the Most of Data: 5 Steps to a Small Business Continuity Plan
Value Area: Financial Analytics /Data Science
What will the future look like?
When Everything is Abnormal
We’re facing these days one step at a time. We re-open. We’re desperately trying to service our markets and take care of customers. For now, we just want to get the ball rolling again. Some day soon we’ll look over the next hill. Everybody hopes there won”t be another shoe that drops. Even as we get busy again, it just doesn’t feel right. We know we feel off our stride. Everybody else knows they’re off their stride too. What is your next smart move? Just waiting for something to happen can be very emotionally crippling. How do we transcend the abnormal? One thing is for sure, a solution is not likely to simply emerge without effort. Calamity happens all by itself Success rarely just happens, if ever. It’s time to make a move.
What’s my next smart move?
Making the Most of What you Have: Your Data
Putting your data to work for you can be the most freeing and rewarding. It’s one actions you can take to secure your future. Your legacy data is a treasure trove of insights. Have you considered leveraging this asset to actively manage your company through the “abnormal” to a better place? One of the common phrases we hear these days is “We just don’t know…”. While that may be true on a macro economic scale, on the micro scale of your business, there can be a lot you can know. If ever the adage was true “knowledge is power” , it is today . The more you know about the details of your business, the better equipped you’ll be to proactively apply your knowledge. Insights from your data can only help. It’s all in the data
Use Data to Transition Your Small Business from “Survival Mode” to “Chronic Mode”
The first step is to make a deliberate decision to engage with your data. Decide to act with a sense of power and purpose. Have a focused goal in mind: Move your business from “survival” mode to “adaptive” mode. Many small businesses (especially upon reopening) are in survival mode. This might be just generating enough revenue this week to get by till next week. There’s no shame in this. You have to start somewhere. Some time soon, you will be challenged to make change. “Survival” mode is not a destination. The next step is “adaptive” mode. Times may still be tough, but you will have at least moved past operating from week to week. How can your data help you pivot and secure a better future? Even if the overall economic climate doesn’t get better soon, you can prepare for some outcomes You have access to an unused asset. It’s all in the data
Especially now, your data will help you keep moving forward to adapt to the challenge
Create Reserves Using Data Analytics
Many small businesses immediately think of borrowing money to create reserves. Sometimes, that’s our only choice. Reserves can also be created from operations, but it a lot harder. It takes knowledge, discipline and effort. The benefit of this effort is you will be creating a more efficient environment via this path. Improving and monitoring operational efficiency can even create reserves in the short haul. When revenues are strong, efficiencies are often ignored. In survival mode efficiencies need to be a constant focus. At times, businesses don’t know where to look. There may be waste that can be trimmed, or better managed. Every business also needs to be strategic with resources. Data is a resource that can create more resources (like the power of compound interest). Having access to data analytics can have a huge impact on managing operations in short time frames. This allows you to detect, adjust and make improvements very rapidly. The outcome will not only improve your earnings, but can help create a reserve for an uncertain future. It’s all in the data
Tap Your Data to Determine the True Value You Bring to the Table
Do you have good handle on the value of your offering? What segments of your offering bring the most value to your customers. What segments generate the most revenue and most profit? Many small business owners have a “gut feel”, but is that truly confirmed by your data? Every small business, from a mechanic shop to a laundromat should know their data and understand where their strengths are. You may need to provide a full service offering, but do you know where to capitalize on your services through advantageous niche offerings. Forward thinking business owner have figured this out from mining their data. They know their tiers of services and they know which to foster and which to take when they have to. You can only play to your strengths once your strengths are known AND they are constantly monitored. Its all in the data.
Know the Life Time Value (LTV) of Each of Your Customers
Turn over in clientele is very expensive. Replacing a customer is difficult. Some customers are high maintenance, some low. Do you know the LTV of each of your customers? Do you know where to foster loyalty and do something special for them? Their maintenance level might be high, but the LTV might be crazy high. Do you and your employees know who is walking through the door, or is one face the same as the next? Knowing the details of each customer will help you nurture that relationship to create even more value to them. What do you know about the value individual clients represent to your business? Other businesses will fight for them. Do they have a sense you appreciate their value? Its all in the data.
Your Data Can Strengthen Your Competitive Footing
The market place is becoming more and more competitive. There is an ever increasing awareness in businesses of all sizes that their data is central to their continuity strategy. One should count on data sophistication to be on the rise in every business. What does the future of data analytics and data science hold for you to strengthen your competitive footing? Here’s a path forward; select a few pilot projects to demonstrate quick wins. If one gets stalled, pivot and drive at least 3 to conclusion. There should be insights which lead to cost-savings and/or additional revenue opportunities. Then reinvest and expand the projects to sharpen your competitive edge. This is a journey. Start your journey. It’s all in the data
Informed Decisions. Better Solutions.
Stillwater Group LLC can create analytics to meet the specific needs of your business
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