Your Path to Business Success: #4 Using Data to Improve Business Strategy

The new year is the perfect time to pause, reflect on the previous year, and adjust your strategy and tactics to drive better results in the new year. But where do you start? Your gut can only take you so far. If you want to make sound business decisions, the best place to start is with data.

Data is foundational in helping you recognize opportunities to attract new customers, serve current customers better, cut costs in your business, and ultimately earn more money. The order of operation to remember is that data helps you form insights, which help inform your strategy. Your strategy separates you from the rest of the pack and allows you to build loyalty, profitability, and sustainability. 

Improve Profits by Using Data

This article will guide you through gathering and analyzing data to unlock your business's full potential.

1. Improve Business Strategy By Using Customer Feedback:

Your customers can help you to improve your product and services if you take the time to analyze their behaviors and ask them for feedback. Here are some ways you can start:

• Customer Surveys: Use surveys to gather insights on customer satisfaction, product preferences, and areas for improvement. Tools like SurveyMonkey or Google Forms make creating and distributing surveys easy.

• Online Reviews: Regularly monitor online reviews on platforms like Google My Business, Yelp, and industry-specific sites. Pay close attention to positive and negative feedback and identify recurring themes.

• Social Media Monitoring: Monitor social media conversations about your brand. What are people saying? What are their concerns? Use social listening tools to track mentions and engage with your audience.

Pro tip: Ask your favorite AI tool to review your online reviews and provide you with insights on what your customers like and dislike about your business.

Where do you get customer feedback?

• Google Reviews
• Yelp Reviews
• Facebook Reviews
• Customer Surveys

See All Options

You can vote for more than one answer.

2. Dive Deep into Your Sales Data:

Your sales data can provide insights into what is and is not working. With these insights, you can adjust your strategy and better meet the needs and expectations of your customers. Here's what to look for:

• Top Performers: Identify your best-selling products or services. What makes them so successful? Can you replicate those factors in other areas of your business?

• Underperforming Categories: Pinpoint products or services that aren't meeting expectations. Analyze the reasons behind their performance. Is it pricing, marketing, or something else?

• Seasonal Trends: Are there peaks and valleys in your sales data? Understand how different times of the year impact your business and adjust your inventory, marketing campaigns, and staffing accordingly.

Pro tip: Compare the price and value of your offering to the competition and identify improvement opportunities.

3. Assess Operational Efficiency:

Efficiency is key to profitability. Taking the time to evaluate your return on labor, profit margin, and return on assets can help you identify undiscovered opportunities for improvement. Here's how to analyze your operations:

• Cost of Goods Sold (COGS) Analysis: Break down the costs of each product or service. Can you negotiate better prices with suppliers? Are there ways to eliminate costs to harvest more profit or provide a lower price to customers?

• Time and Money Allocation: Track how you spend your time, payroll dollars, and company resources. Are there tasks you can automate or outsource? Are you investing in the right tools and technologies?

• Identify Inefficiencies: Look for bottlenecks or areas where processes are slow or cumbersome. Can you streamline workflows or implement technology to improve speed and customer satisfaction?

Pro tip: Explore how your team can use AI to save time taking notes, summarizing emails, or crafting communications.

Summary:

By consistently gathering and analyzing data, you can understand your business performance and make data-driven decisions that fuel growth. Remember to:

• Collect customer feedback through surveys, online reviews, and social media monitoring.

• Analyze your sales data to identify top performers, underperforming categories, and seasonal trends.

• Assess operational efficiency by analyzing COGS, time and money allocation, and identifying areas for improvement.

By doing this, you can identify insights that can inform your business strategy, allowing you to craft tactical shifts that have the potential to unlock more profitability.

In the next article, we'll explore the importance of market research in understanding your industry and competitive landscape. Stay tuned!

References:

How Marketing Automation Can Boost Your B2B Lead Generation - RAY B2B. https://www.rayb2b.com/tools-and-technology/how-marketing-automation-can-boost-your-b2b-lead-generation/

Measuring the Success of Online Product Sampling Campaigns | Mister Duda. https://misterduda.com/25934-measuring-the-success-of-online-product-sampling-campaigns-11/

Strategic Planning: The Key to Business Alignment and Success.

Ever wonder what large companies do to drive alignment? If you have never worked within a large organization, you might not know how important strategic planning is in aligning the different organizational functions and leaders. Most Fortune 500 companies go through an annual budgeting and planning process where they map out financial investments, key initiatives, and strategic objectives for the next 3 to 5 years. There is wisdom in this process. The more time you take to determine where your business is going and the key steps you need to take to succeed, the more confidently and quickly you can make day-to-day decisions.

One of the more widely used systems for strategic planning is the balanced scorecard. Introduced in 1992 by Robert Kaplan and David Norton, the balanced scorecard encourages businesses to identify goals from a financial, internal business process, customer, and learning perspective. By establishing business goals from different perspectives, you can create a well-rounded approach to improving your business. This will help you avoid focusing too much on one area of your business while neglecting others.

Aligning Business Resources with Strategy

Your business does not have unlimited resources. How you spend your money, time, and resources today will determine your business capabilities and profits tomorrow. Business authors like Jim Collins and Patrick Lencioni have documented the risk of business leaders not allocating sufficient time for planning. The adage, measure twice, cut once is especially true in business. Defining where you want to be in 5 years will increase your likelihood of reaching your goal.

How to Build a 5-Year Plan:

• Consider the impact that you want your business to make. What kind of legacy do you want to leave behind? What problems are you trying to solve for your customers? Answering these questions will help you to clarify what milestones you will need to accomplish over the next 5 years to achieve your goals.

• Consider what people, resources, systems, and processes you need to reach your goals. Do you have the right team in place? Do you have the right technology? Do you have the right processes in place to support your growth? If not, what steps do you want to take to improve the infrastructure of your business? The organization you have today does not have to be the same as the one you have tomorrow. Being intentional about the changes you want to make will help you build a better tomorrow.

• Set financial targets and define the revenue streams that will help you achieve those targets. How much revenue do you need to generate to reach your goals? What investments will you need to make to create more revenue? One of the hardest things for many business owners is accepting that financial progress is not a straight line. Frequently, you must invest in the short term to make more money in the long term. Being clear on your long-term goals will help you find the clarity necessary to invest in the people and capital you need today to reach your financial goals tomorrow.

Who should you include in this plan?

When you are developing long-term plans, it is prudent to get input from multiple perspectives. As the leader, you are the ultimate decision maker, but talking with your CPA, business coach, lawyer, mentors, employees, vendors, and even customers can help you make a more informed decision about the future of your business. The stakes are high; apply rigor to your thinking. You will never be able to anticipate every potential obstacle or future need of your business. Still, by talking to various people, you are more likely to come up with goals and plans that are specific, measurable, actionable, realistic, and time-bound.

What should your plan look like?

That is up to you. Many options will arise if you Google images and ask for a 5-year plan. Pick the one that works best for you. The most important aspect of this is the process, not the visual output. The time you take to think about where you want to be in 5 years and your conversation with others will help you find more clarity in your goals. I have posted the typical balanced scorecard I built with my clients. If you are interested, you can download the template and use it.

When should you update this plan?

Update your plan annually. Your long-term goals will change based on your short-term successes and learning. Re-evaluating long-term goals each year will help you to stay focused and refine your thinking.

Summary:

Building a 5-year plan is a best practice to help small business owners clarify their goals and lead more confidently. When you set out on a journey, having a clear vision of where you are going can help you prepare appropriately. The time you spend

1. Defining your financial goals

2. Identifying your ideal customer and how you will serve them

3. Designing efficient and effective processes

4. Crafting people selection and development strategies

will help you to have a blueprint for achieving your long-term goals.

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Thank you for reading this blog

I am a father, husband, executive coach, and former retail executive. My coaching expertise comes from 21 years of leading operations, sales, and marketing teams. I understand what it is like to feel stuck, undervalued, and underappreciated.

I also know what it takes to invest in professional development, climb the corporate ladder, and find fulfillment at work.

Your career path is a scavenger hunt. Each opportunity prepares you for the next. Allow me to help you clarify your path and accelerate your professional development.

Grow your career

Have Feedback Send me a note at

Email: dcunion@yourpathexecutivesolutions.com

Start with the End in Mind: A Strategic Planning Toolkit for Small Business Owners

updated 4/6/2025

As a small business owner, you have a lot on your plate. You're responsible for everything from marketing and sales to product development and customer service. It can be easy to get caught up in the day-to-day and lose sight of your long-term goals. You're likely juggling tight budgets and time constraints and may seek accessible, credible tools to help you grow your business.

Why "Starting With the End in Mind" is Your Business Superpower

"Starting with the end in mind" means taking the time to envision your ideal business future. It's about defining where you want to be in one year, five years, or even ten years, and then working backward to create a plan to get there.

Here's how this approach can transform your small business:

• Clarity: A clear vision eliminates distractions. You'll make decisions more confidently and avoid chasing opportunities that don't align with your core objectives.

• Motivation: When you know what you're striving for, you'll stay motivated, even when faced with the inevitable challenges of small business ownership.

• Efficiency: Strategic planning optimizes your resources. You'll use your time, money, and energy effectively, focusing on activities that drive you closer to your goals.

Your 4-Step "End in Mind" Strategic Planning Framework

Ready to implement this strategy? Follow these steps:

1. Define Your End Goal: Get crystal clear on your destination. What does success look like? Where do you want your business to be in the future? Write it all down with as much detail as possible.

2. Establish Your Values and Non-Negotiables: What are your business's guiding principles? What are you unwilling to compromise on? Defining these ensures your decisions are authentic and sustainable.

3. Define Key Milestones: Break down your big vision into smaller, achievable steps. What are the key milestones you need to hit along the way? This makes the journey less overwhelming and more manageable.

4. Move from Theory to Action: It's time to execute! Develop a timeline for reaching your milestones and work consistently toward your goals.

There is power in writing down your plan. Your brain can only process so much information at one time. When you write things down, you reduce the cognitive burden. This can allow you to connect ideas and opportunities that previously were not visible.

Your Action Plan for Strategic Success

Once you have defined your vision, it is time to turn it into a plan. Here are five ways to get started.

• Set SMART Goals: Use the SMART framework (Specific, Measurable, Achievable, Relevant, Time-bound) to make your goals concrete and attainable.

• Create a Business Canvas: Your business canvas visually represents your business model. It should outline your value proposition, expenses, activities, revenue stream, customer channels, and financial projections.

• Track Your Progress: Monitor your progress regularly to stay on course and make necessary adjustments.

• Celebrate Wins: Acknowledge and celebrate your achievements, no matter how small. This builds momentum and reinforces positive behavior.

• Invest in Individual Coaching: Consider the power of personalized guidance. Individual coaching provides focused attention and customized strategies, often delivering a faster return on investment.    

There is only so much planning you can do. Eventually, you must take action, experiment, and make mistakes to learn and grow. Taking time upfront to build a clear plan will allow you to execute confidently. After you take action, you can reflect on the result, tweak your plan, and continuously improve.

Key Takeaways for the Aspiring Entrepreneur

All business go through phases. When you start your business you have more dreams than plans. As you conduct research, your awareness of opportunities grow, and you are better positioned to understand what your customers need and want. As you begin to provide products and services, you learn more about the market place and the position you can fill within it. Here are three final thoughts around building your strategy.

• Everyone Starts Small: Don't be discouraged by humble beginnings. Every successful business started somewhere.

• Competency Comes from Learning: Mistakes are part of the process. Embrace them as learning opportunities and keep moving forward.

• Confidence is Built on Success: Achieving your goals builds confidence. Focus on consistent progress and celebrate those wins!

Starting with the end in mind, it is a game-changer for small business owners. By envisioning your desired outcome and creating a strategic plan, you'll set yourself up for greater success.

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Thank you for reading this blog

I am a father, husband, executive coach, and former retail executive. My coaching expertise comes from 21 years of leading operation, sales, and marketing teams. I understand what it is like to feel stuck, undervalued, and underappreciated.

I also know what it takes to invest in professional development, climb the corporate ladder, and find fulfillment at work.

Your career path is a scavenger hunt. Each opportunity prepares you for the next. Allow me to help you clarify your path and accelerate your professional development.

Let's clarify your goals

Have Feedback Send me a note at

Email: dcunion@yourpathexecutivesolutions.com

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