By: Kevin Faber
Data analytics is a powerful tool, one that has the capacity to benefit small businesses just as easily as larger and more well-established organizations. While many new startups lack the in-house resources and expertise needed to generate, collate and analyze large volumes of data in order to produce useful insight, there are a variety of services and resources that can provide an ideal solution. The information gleaned through data analytics can be of immense benefit to business owners. Finding the big data solutions that are best suited to their needs and budget is no longer a concern that business owners can afford to take lightly.
New ventures often require a great deal of time in order to fine-tune core workflow processes and day to day operations. While a little trial and error will always be necessary in order to find the best way of doing things, finding ways to speed the process can help to curb overhead costs and ensure that organizations are able to benefit from greater efficiency. Data analysis is often essential for creating the more in-depth level of understanding required to enact more meaningful and effective change. Data analysis can help identify the inefficiencies and the possible solutions to run the business as efficiently as possible, allowing for better use of time and money as the revenue of the business will not be going to inefficient and wasteful operations.
Inefficiency can often be the greatest enemy of a new startup or small business. The lost productivity or impaired profitability commonly associated with poor efficiency can be a major issue for small businesses. Organizations that have only limited operational funds as well as ventures that may be struggling just to break even or to establish themselves within a crowded marketplace need to be as efficient as possible. A comprehensive analysis of all in-house documents, records and data may turn up any number of issues that might have otherwise escaped notice. As these issues are identified, further analysis can help identify solutions that could enhance efficiency and eliminate the side effects of the poor efficiency at which the business was formerly operating.
Identifying Market Trends
Shifting consumer habits and evolving trends have the potential to impact whole markets. While larger businesses may have the resources needed to better withstand changes, smaller operations that fail to identify emerging trends early on may find their very survival at risk. Not being up-to-date on current and emerging trends before and as they become trends will allow for competitors to steal customers and clientele as those businesses who are not current become irrelevant. Data analysis tools and techniques can help businesses to better understand the needs and habits of their current customer or client as well as the ability to more easily identify any changes that may be on the horizon, allowing businesses to stay relevant and in business. Lacking the right information and insight can make it all but impossible to keep pace with a changing marketplace.
Data Services, Resources and Solutions
When it comes to putting analytics to good use, lacking the in-house resources needed to effectively complete an analysis process is often the biggest obstacle for new businesses. Services like Google BigQuery can be a powerful asset, one that may allow businesses with limited means and resources to benefit from professional-quality data analytics. Cloud-based data warehousing and collation services, off-site analytics and third-party service providers that can be contracted without exceeding the operational budget of a business all have the potential to provide game-changing solutions. Thanks to off-site services, it is now possible to develop superior insight and greater understanding for far less overall cost than many small-business owners might have thought possible.
Greater Insight and Understanding Means Superior Decisions
There are countless decisions that must be made in order to ensure that new ventures and startups are able to enjoy a greater chance for long-term success. From real-time information regarding the effectiveness of any operational or policy changes to the ability to develop more accurate and detailed customer profiles, data analytics are not a resource that business owners can afford to overlook. Finding big data solutions that can provide superior results and a greater overall value is a concern that has the potential to make or break many small businesses. Thanks to today’s third-party analytic service-providers, a business’s on-site resources and available finances are no longer a limiting factor when it comes to their the ability to make more effective and informed decisions.
Small business owners must take using big data solutions seriously as it will save them money and time. Big data solutions increase operational and financial efficiency as better ways of operating, market trends, and solutions to issues that arise are identified quickly, saving the business money and time. For a small business to grow and be successful year after year, big data must be utilized; that much is a given.
By Kevin Faber
About the author
Kevin Faber is the CEO of Silver Summit Capital. He graduated from UC Davis with a B.A. in Business/Managerial Economics. In his free time, Kevin is usually watching basketball or kicking back and reading a good book.
Follow him on Twitter: @faber28kevin