How to Use Statistics to Make Smarter Business Decisions
If there is a way to make a comparison, add up a sum, or create some form of equation, statistics are likely to follow. In the world of business, statistics are vitally important. There isn’t a finance expert or brokerage firm that doesn’t use facts, figures, and statistics prior to making a major move. Business owners use statistics to make calculate the pros and cons of each possible business-related decision. Knowing the exact percentage chance of failure versus success is one of the most critical pieces of information that a business owner can have before deciding to work with a different supplier, hire an employee, or apply for a new business loan. Here is how you can use statistics to make smart business decisions on a regular basis.
When Statistics Matter – Concerning Your Business
No matter what kind of industry you operate in, your business needs to be monitored constantly in order to thrive. Businesses that offer digital, downloadable, and virtual products may not require much active maintenance. If you have someone answering emails, an IT tech on staff for troubleshooting purposes, and a content team to keep your website and blog up to date, your business may almost run itself. You still need to look at various business-related statistics to see how your company is fairing, what changes and improvements can be made, and how much profit you stand to gain.
Go to this site for more information on statistics, how they relate to business, and what they will mean in the future. As it concerns your business, statistics will help you to make the best decisions available, every time.
More Effectively Structure Your Business Plan Using Statistics
Whether you have considered changing your existing company’s business structure or you are planning to launch a new business in the coming months, you must start with a detailed and well-organized business plan. A business plan that is chock full of statistics and contains pages upon pages of rich data is a great indicator of future success. Creating a statistic-filled business plan means that you have done a lot of research and that you are willing to invest and do the hard work it takes to get results. Take your time and give the business plan stage all that you’ve got. Look at your industry, how it has performed over the years, and document where it is predicted to go. Do all of the calculations and use statistics to fill in the rest.
Use Statistics to Learn Who the Competition Is
Chances are, you have more competitors than you know about, even if you have done proper research. The reality is that more and more people are going into business on a daily basis. As soon as one company closes down or relocates, there may be several that appear in the space it left behind. Of course, simply knowing that you have competitors isn’t going to do much to help. But by using statistics, you can learn more than you ever imagined about the companies that are slated to give your business a run for its money. For instance, being aware of the fact that women business owners are an exponentially growing group can help you to plan when it comes to detailing your company history, or even when applying for grants and business financing. You can look at statistics on the number of new businesses that have opened in your local area or find out what industries have seen the most growth over the past year.
Statistics and Their Impact on Branding, Logos, and Business Image
Did you know that certain colors like green and blue can make consumers more prone to feeling specific feelings or engaging in predictable behaviors? These types of statistics have been used by companies when working on their branding and creating logos. In fact, it is also why you are likely to see the inside of grocery stores and restaurants painted and decorated in very specific color schemes. It may appear to be coincidental, at least on the surface. However, business owners who make good use of statistics also use this type of information to create the perfect business imagery and branding.
Hiring, Training, and Employment Retention Decisions – How Statistics can Help
When it comes to hiring and termination practices, statistics can also help more than you think. You have your company and you require a certain number of workers to keep it running, this is understood. However, as your proficiency as a business owner improves and your staff becomes more adept, you can also start to play around with the staffing numbers to get to optimal performance levels. Some workers may need to go on leave, so you hire temporary staff in the interim. Perhaps a few other workers switch to part-time schedules, so you look to hire for a new, permanent, full-time position. With statistics, you can see what your business’s profitability will be if you were to run your company on a skeleton crew versus a full house.
Improve Your Business’s Odds of Being Approved for Financing
Another important way that you can make better business decisions using statistics includes the area of business financing. Many businesses have a lot of trouble getting approved for financing via traditional banks when they have been in operation for less than two years. Normally, banks want to see that a business is profitable, and has been for a while. Unfortunately, newer companies simply don’t have any way to provide adequate paper-trails in these instances. Look at current business-related statistics to see what your odds of getting a traditional business loan are at the moment. Also, use statistics to see what your alternative business financing options are. There are tons of statistics on grants and community-based small business initiatives meant to infuse business owners with cash when they are in need.
Statistics and How They Can Shape Your Business Bookkeeping Practices
All high-performing companies have some kind of set bookkeeping practices that they use to stay on top of the numbers. You could have an accountant who comes into your business on a weekly basis to balance the books. You may also be using software to keep track of all accounts payable and receivable. Your company might even have an entire department dedicated to keeping your financing records and bookkeeping practices in line. However, until you look at the statistics, business owners can’t know which strategy is best for them specifically.
Business Partnerships, Contracts, Mergers, and Acquisitions – What the Statistics Say
When you are made an offer or encounter a potential partnership that stands to make your company a lot of money, you can easily get stuck considering the potential alone. Businesses all over the world combine, restructure and work together in order to achieve a common goal. Some of these ventures end up being very lucrative, and others are complete busts. You may believe that you will only find out what awaits your business by going forward, but if you use statistics you will understand that the answer is actually in the numbers. Don’t agree to buy, partner with, or otherwise do business with any other company until you have crunched the numbers and then double-checked your math.
Business Statistics and Current Events – Surviving COVID and More
Do you know how much the coronavirus pandemic has impacted your company, to date? You can look at your total sales for the prior fiscal year, and you can look at how much your expenses have increased year over year. Business statistics and how current events impact sales and profitability are some of the most imperative information that a business owner can have access to. Your initial goal may have been to smash last year’s sales totals, but sometimes the world has different plans. Know the data so that you can make informed business decisions.
Never Letting a Statistic Go to Waste as it Relates to Business Decisions
As you work to make your business more profitable, you will have an inexhaustible number of opportunities to read up on new data and statistics. Knowing how many workers called out sick in a month is important when you are looking at annual performance reviews. Being aware of the number of leads that your business is buying and how well they are converting is critical when considering your marketing budget. As long as you don’t let any of these statistics go to waste, you can be sure that the best business decisions are being made.
Some business owners make moves based on what is referred to as a “gut feeling.” They either go forward or decline with select decisions, based on their feelings of intuition, but even those are shaped by statistics. If you have reviewed the numbers and have a good feeling about making specific business moves, then you are actively using statistics, whether you realize it at the time or not. Never take information at face value, and instead dig into the raw data, look up statistics, compare growth charts, read sales reports, and let the numbers tell you where to take your company next.