Increasing Your Profit By Looking At Your Data
Increasing Your Profit By Looking At Your Data
Over time this daily data turns into an absolute pile of data.
Unfortunately, by itself, all this data is absolutely useless!
Data by itself is like raw lumber. It needs to be worked into an end format that is usable.
Every business owner can take some fairly simple steps to convert all, or some, of their data into information. When done right, this information can help increase profits, improve operations, and increase employee morale, attraction, and retention.
How can this data be transformed into profitable information?
The first step is to determine what Key Performance Indicators (KPI’s) are important to your business. KPI’s are measures that tell you how well your business is meeting its plans. They are outward measures of activities that drive the profits of your business.
For example, how many customers does your business have? What is your growth rate in number of new customers? What is the attrition rate (customers lost) for your business? How often does your average customer buy from you? What is the average sale? What is your gross margin?
Once you’ve decided what the relevant KPI’s for your business are, then it’s time to start sifting through all the data your operation generates. The easiest way is to actually get your team together and spend some time brainstorming a list of all the different data sets your business gathers.
Once this has been done, it’s a relatively simple process to develop methods to transform the relevant data sets into KPI’s (both financial and non-financial) that are meaningful to your business goals.
By putting some effort and creativity into this activity you really can turn the data from your business into increased profits and cash.
Increasing Your Profit By Looking At Your Data - To learn more about this author, visit Steve Wilkinghoff's Website.
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Everyday each business gathers an awful lot of data through the course of its operations. Every time a customer enters the business, buys something, pays for something, calls into the business, makes an enquiry, and on and on, their actions create data.
Over time this daily data turns into an absolute pile of data.
Unfortunately, by itself, all this data is absolutely useless!
Data by itself is like raw lumber. It needs to be worked into an end format that is usable.
Every business owner can take some fairly simple steps to convert all, or some, of their data into information. When done right, this information can help increase profits, improve operations, and increase employee morale, attraction, and retention.
How can this data be transformed into profitable information?
The first step is to determine what Key Performance Indicators (KPI’s) are important to your business. KPI’s are measures that tell you how well your business is meeting its plans. They are outward measures of activities that drive the profits of your business.
For example, how many customers does your business have? What is your growth rate in number of new customers? What is the attrition rate (customers lost) for your business? How often does your average customer buy from you? What is the average sale? What is your gross margin?
Once you’ve decided what the relevant KPI’s for your business are, then it’s time to start sifting through all the data your operation generates. The easiest way is to actually get your team together and spend some time brainstorming a list of all the different data sets your business gathers.
Once this has been done, it’s a relatively simple process to develop methods to transform the relevant data sets into KPI’s (both financial and non-financial) that are meaningful to your business goals.
By putting some effort and creativity into this activity you really can turn the data from your business into increased profits and cash.
Increasing Your Profit By Looking At Your Data - To learn more about this author, visit Steve Wilkinghoff's Website.
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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