Longevity. That’s the main thing we look for when we start up our own business, and thus all efforts to keep it up and running from day one is so we’ll still have it on day 7000. However, it can be hard to read a flowchart of everything coming in and out, and having an accountant on hand to see how well you’re doing from a professional viewpoint will be useful here.
Knowing how to use business statistics to your advantage means you know how to navigate a future that’s unclear, as many business models are. You need to know your market, and you need to know your brand; here’s a couple of points on the matter.
You Need to be able to Read Standard Deviation
It’s all about means and averages when it comes to business, so one of the main ways to read something in terms of numbers is to use the standard deviation, as it incorporates most of the variables we need to consider. Knowing how spread out your finances and stock are, compared to your average, is key to knowing where the money is going.
For a basic rundown: If you find your employee wages all clustered around the middle of your chart, then you can say your wage packets are fair as far as everyone under them is concerned. However, if they’re more spread out across the chart then there’s some serious deviation from the average someone can earn in an hour. This can be seen as less fair.
Comparing income data sets is important to see how you can improve; therefore spending and earning could be seen on this chart. If you have a baseline to act as your average, then you can compare any other earnings on top of that to see how much deviation there is in what you can bring in on a monthly or yearly basis.
To Improve, Learn to Use the Software Correctly
Sometimes the only thing holding us back from truly connecting with the market is unfamiliarity. We’re not doing anything else wrong, we just don’t know how to use the software that tells us what we need to do to make better sales and more consistent connections.
Thankfully, tableau classroom training exists, and only takes a couple of days out of schedule to complete. Being surrounded by people in a likewise position can make you feel more comfortable in finding your roots with the technology, and the constant supervision of experts makes us work double time to get used to something.
Every way to read your business finances is impossible to set out here, but it gives you a bit of an idea on the main themes. If you need some help in the statistical analysis end of business, you can try hiring yourself a proverbial egghead, or make an effort to read the books yourself. Of course, as a business owner you’ve had plenty of practice at it, so try taking it to the next level.