Most small businesses often neglect the benefits of analytics on their business process. According to a comprehensive study conducted by the National Federation of Independent Businesses. Some of the most significant issues faced by small business owners include:-
- Providing Healthcare – Risk Management
- Rising Costs for equipment and Hiring
- Diversifying the Client Base
- Cash Flow
Each of the above problems are significant in their own right. The common thread that binds them is – business owners not having a clear picture on where to focus their energy, money and time. After all in order to understand what gives the best return on investment you need data. Take cash flow for example if you run a single person firm like an Architect or Consulting engineer you may not have the issues with hiring but tracking all the billed hours is critical. Knowing how much time is spent on a project will help identify clients who are big spender’s vs others who consume a significant amount of your time but don’t really have the kind of projects that make it worthwhile.
By tracking the hours and amount billed you can differentiate pricing and make sure that projects are being estimated accurately. This result in fewer slippage in terms of time and money in the end. Seasonal variations in arrival of new projects, travel expenses and other intangible expenses can all eat away your cash reserves and it’s important to know how much of an impact they have on your business.
At its core a small business is about two things. Money and Customers. Knowing as much as you can about both gives you the best chance of success. At Pars Consulting we provide the in depth understanding required for business owners to make smart decision armed with data.