Being a successful entrepreneur is difficult and it is easy to become derailed very quickly. In our podcast ‘5 Stages of Service-Based Entrepreneurship’, Darnyelle Jervey Harmon says “An employee mindset will keep you stuck in the launch stage”. Moving forward from being a struggling startup to a profitable company depends largely on your mindset as a business owner. And one of the most efficient ways to get into the mindset of a successful entrepreneur is through embracing new business tools like data analytics.
In a nutshell, data analytics for businesses enables entrepreneurs to predict the actions of their customers based on past data. For instance, Atlanta Small Business Network shares how business data analytics can yield recommendations about products and services to customers. While it’s true that hiring analytics experts or buying data analytics tools can be expensive, considering what it can do for your struggling startup it’s bound to pay for itself in the long run. By being able to anticipate customer needs through the latest analytics software, you can better organize your product inventory or service menu, build long-term relationships with clients/customers, and ultimately stride towards long-term growth. The formula is simple: the more informed you are about your customer base, the better you can do business.
Besides, whether or not you personally believe in the value of business data analytics, the numbers speak for themselves. Maryville University reports that the analytics technology and solutions market will enjoy a compound annual growth rate of 11.7% by 2020. The online university also notes how the global revenue of big data analytics in 2020 is predicted to balloon to a staggering $203 billion, while the U.S. business data analytics market alone will be worth $95 billion. These numbers are a clear indication of the value of data analytics to the future of business, particularly banking, process manufacturing, discrete manufacturing, government, and professional services. If you’re a small business owner, you’re going to need analytics on your side if you want to stand a chance against established companies in your industry.
Let’s be honest – there’s still something that’s holding you back from accepting the role of analytics in business. It’s true that for really tight budgets, the annual cost can be significant, and analytics is only truly worth the cost if it’s applied long-term. This is understandable – no small business would be willing to take money from vital departments in order to pay for a whole new solution, especially when your ROI is still largely unpredictable. But as Entrepreneur notes, good data analytics can tell you what your bottom line figures can’t – answers to questions that are vital for your company’s growth. While ordinary accounting can tell you how many customers you had and how much money you made, analytics can tell you who’s buying your product, why you’re gaining or losing customers, and even give you an accurate estimate of just how loyal your customer base is. Having this information about your small business can make you a significantly more competitive player in the game. The younger your business is, the more you need business data analytics on your side.
Exclusively submitted to IncredibleOneEnterprises.com by GrowWithMe RJ