Big data has become a huge gamechanger for companies in almost every industry. An astonishing 53% of companies are adapting data analytics to improve their operations.
However, a lot of new companies don’t use big data effectively. This can be a big mistake, because data analytics could help them reduce their odds of failure and shorten the learning curve while they are getting started.
If you are trying to run a new business, then you should try to get the most out of your data analytics strategy. There are a lot of ways that big data can help you become a more successful business owner.
Big Data Can Be the Key to Thriving as a New Business Owner
Starting a small business may have been your dream ever since you were much younger and you realized you enjoy spending money. In life, money can come to us in two main ways. You can earn money for yourself, and you can share some of it with the people who helped, or you can be the person who helped. That thought alone is the motivation behind many people wanting to start their own company.
Unfortunately, it is a lot harder to run a business successfully if you don’t adapt to the times. Big data is becoming a lot more important for most new companies. This is why classes and seminars like The Analytic Entrepreneur Series are so popular these days.
When you’re ready to be the person who earns the lion’s share of the money rather than being the person who helped, you may need some tips along the way. You can find some interesting ways to use big data to make the most out of your new entrepreneurial endeavors.
Here are some ways that data analytics can help you bolster your odds of succeeding as a new business owner.
Data-driven invoicing – protect your revenue streams
Invoicing can be a key part of your startup success story (see how to navigate a business invoice). However, you are going to have a harder time invoicing successfully if you don’t use big data to make it easier. Here’s why.
Your small business only has one aim: to make money by growing your business. There are a hundred other aims that go towards building a supportive pyramid beneath that top goal, of course, like developing a positive staff culture and providing excellent customer service, but it’s all for nothing if you can’t make ends meet and you are forced to cease trading.
Unfortunately, it can be harder to figure out what practices are really contributing to your bottom line if you don’t have detailed data on all of your customers, their accounts payable closure rates and the average purchase prices. You need to look at data carefully when assessing the effectiveness of your invoicing strategies.
Invoicing is the difference between chasing payments in long and fruitless email chains, and giving your client an itemized bill complete with payment details. An invoice removes all of the roadblocks that difficult clients could throw up. Your breakdown of the bill is clear to see, and the payment methods are stated when you have clear data records of everything. That’s why data-driven invoicing works. You will find that big data has helped revolutionize invoicing.
Track your expenses with data analytics
Your business account is a delicate thing. As long as money is coming in, you might think you don’t need to pay much attention day-to-day (or even week to week). But just as children need to learn to save their pocket money and use it wisely, a business account comes with training wheels. You can learn how to manage your money a lot more easily if you have data analytics tools to help track your expenses.
Do you know where your expenses go? Who is in charge of your outgoings? How would you know if too much money were being spent on office supplies or business lunches? Your outgoings can and should be minimized – only spend money on things that benefit your company.
Free staff lunches once per week may help to create stronger bonds between staff, increasing workflow and helping you to retain talent. But above looking after your staff, always try to minimize the money flowing out of your account.
Data analytics tools make this a lot easier, because you can pay closer attention to all of your expenditures.
Become a prepper by using big data to embrace frugality
When you anticipated starting your own company, you no doubt had dreams of buying a yacht and naming it something like THUNDERBOLT KID and sailing off into the sunset. Right? Well, best of luck.
The truth is that you need to have one eye on all of the potential disasters that could be headed your way. Everything from government legislation to crumbling trends in buyer preferences could spell trouble ahead for your company. You need to do your homework.
Don’t assume any relative stability that your business currently enjoys is set in stone. Pay close attention to the chatter in your industry, and check out what motivates your competitors. Learning to read the business tea leaves is time-consuming, but it could ultimately save your company from collapse.
Frugality mostly comes down to exercising discipline. However, big data technology can also help a lot. There are a lot of data-driven apps and websites that make it easier to find creative ways to save money.
Big Data is Highly Useful for Entrepreneurs Trying to Succeed
There are a lot of ways that entrepreneurs can embrace big data technology to succeed. This technology has made it a lot easier for them to boost their profit margins and reduce unnecessary expenses.