Unlock Your Business’s Potential By Utilizing Data-Driven Decisions
Most of our life decisions depend on our ‘gut feeling’. Our instinct guides us. Although it is great to listen to your heart, how do you know if the outcome is the best for your teammates and employees? Business decisions should be ‘fact-driven’ and not subjective. They should be based on data rather than feelings. Ever experienced social media-driven marketing that sends you ads for items you’ve been browsing on the internet? That is data-driven marketing that’s directed at you. Head to our Making Bank episode S7 E34 to learn about how you can unlock your business’ potential by using data-driven decisions.
Move Beyond Passion
You’re passionate about something and want to make a business out of it? That’s great! Contrary to popular opinion, being passionate about your idea is not enough. Learn about what constitutes a business. Research your industry — what works, and what doesn’t. Latest advancements in technology and how you can use them. If you’re into production, don’t be stuck in that vertical. Explore alternative ideas to manufacture and export. Use your passion to fuel aspects that could help grow your business.
Look For Actionable Insights
Ask people for feedback. Be it customers, potential clients, friends, colleagues, or family. Seek feedback often. Instead of vague comments like ‘The food could be better’, ask for specifics like ‘What is the 1 thing we could do to make the dining experience memorable?’. By paying attention to the answers, you receive real-time data that helps you take action.
It is advisable to have Key Performance Indicators that give you an idea about where you stand. What helps is monitoring these KPIs regularly (daily, weekly, monthly, or quarterly depending on what the KPI is). Use the data generated here as a navigation system for your business, to figure out what your next steps should be. A detailed analysis can also help you figure out the areas that need attention to be more efficient. You could redirect resources to such aspects of the business.
Data Does Not Lie
Your feelings are temporary and may be fleeting. But the numbers and data are an accurate representation of the situation. Treat your data as an asset. Use it to make informed decisions. If you face a challenge, don’t just look at the root cause. Instead, study the information and look for patterns if any. Looking beneath the surface brings up a lot of answers. Invest in reliable data sources. These could be data analytics tools, ERP systems, predictive softwares, customer surveys etc. You could integrate the information from different sources as well.
Reflect And Readjust
Once you’ve used data to make decisions, ensure to re-evaluate them. This will help you achieve accuracy and further dilute the uncertainty if any. Newly presented information can help you alter some decisions. Receiving feedback will also help you make further improvements.
In conclusion, businesses that use data driven decision-making, are more likely to be profitable. If you can harness the information available to your advantage, you can scale your business. The world is overrun with data today. However, figuring out your needs will help you stay on track. Of course, you cannot make this change overnight by introducing new software or systems. Talk to your people about data and its importance and help make this mindset shift, slowly.