Data tips to help you grow your small business
Almost all small businesses experience growing pains. The truth is, successful growth and expansion requires careful consideration and planning. The best way to make informed business decisions is to analyse and use accurate, up-to-date data. Failing to examine and utilise important data can limit potential growth and result in missed opportunities.
In fact, research shows that up to 73 per cent of company data goes unused. It’s a bewildering figure. However, often it’s not a case that the business doesn’t want to use the data, rather that, they don’t understand it or how to put it to use. This is where Inline Partners can help. Our team are skilled at gathering, interpreting and translating financial data into business strategies.
We take a look at the numbers
At Inline Partners, we know that the value of data can never be overstated when it comes to small businesses, so we ensure our accounting and business advice is backed up by numbers and figures. After all, analytics help us uncover valuable insights about your business and the market in which your business operates. We can then use these to improve your cash flow, boost efficiency, and better manage risk – all of which can help your business grow and succeed.
We take the time to gather financial data and closely examine a range of metrics to help understand the financial position of your business. These include revenue growth (%), gross margin (%), operating profit (%), revenue to overhead expenses (%), operating cash flow, debt to equity ratio, the number of new and returning customers, average sales per customer, return on assets, breakeven point, working capital measures and return on investment. Once we understand these key metrics, we can implement an action plan to help your business grow, improve profitability and minimise financial risk.
We believe in benchmarking
Benchmarking is the practice of comparing your business processes and performance metrics to others within the industry. It’s extremely beneficial and important for the success of your small business or start-up. Comparing your business processes and performance metrics to competitors helps you understand where your business sits in the market and identify opportunities for improvement and growth.
It’s not necessary to spend a bulk of your time each week focusing on what others are doing, but it’s essential to regularly monitor and track your progress against competitors. Benchmarking can ultimately give you greater insight into performance (both yours and competitors), strengths and weaknesses, and changes in the marketplace. The Australian Taxation Office has a list of benchmarks which you can compare to other businesses in your industry.
Our team of experienced bookkeepers, accountants, and consultants here at Inline Partners are skilled in data analysis and benchmarking to help you grow your small business. For a more in-depth look at your business, please book a free consultation with us.
