According to Thomas Friedman, author of The World is Flat, technological advancements in communication and data collection have leveled the playing field for SMEs. Large corporations are now in direct competition with smaller, localized businesses who can provide equivalent services, as well as offer that “personal touch.” As a fledgling production company, you need to utilize every available tool, like data analytics, to successfully compete against established companies.
Any company desires what data analytics can provide them – especially a small business. It can be leveraged to improve decision-making, reduce costs, increase profits, understand demand, and expand customer base. Most importantly, it won’t break the bank to incorporate into your strategy. Your production company is ready to grow and can benefit from understanding what people want, expect, and need. With data analytics, you will be able to identify patterns and behaviors within existing/potential customer data that can be used to expand your company.
Data Analytics is Affordable and Predictive
Of the challenges you face while establishing your business, cash flow will be a prominent one. Overhead, labor, equipment, travel, and miscellaneous costs build quickly, and you may panic because you haven’t landed enough gigs to even break even. Fortunately, data analytics can help.
Not only are there free analytics tools available online, but using them can help you take control of your company’s financial future. Programs like DataWrangler or Tableau Public are highly recommended for entrepreneurs who want data analytics without the price tag. You may spend additional office hours learning how to use these tools, but visualizing your company’s financial forecast can bring much-needed relief.
Data Analytics is Descriptive and Prescriptive
Like most small businesses, your production company is liable to have competition. Overlooking the past and current market landscape is a common mistake entrepreneurs make leading to failure. Fortunately, data analytics can reveal critical information about current industry demands, developing industry technologies, as well as the appropriate actions to take.
Asking the right questions can help direct your company down the best path. There is a massive amount of farmable data, and certain questions can discern what data to pull from. Important questions such as “what is happening?” and “what needs to be done?” will reveal trends to use to your company’s benefit.
Acting quickly is a major advantage to being a small business. By examining the current data, you can identify popular locations for production shoots, simulate potential outcomes and make an informed decision on the next best step. Operational procedures keeping larger companies organized hinder their actions, meaning you can beat them to leveraging customer trends discovered in the data.
Data Analytics Promotes Confidence
Your production company may be comprised of only a few employees that have to cover areas such as production set-up, administrative management, accounting, social media and online branding. There are natural risks associated with small businesses that can cause doubt, and keeping up morale is one of your key responsibilities. Employee retention is valuable because the hiring process and training costs extra money and time. Involving your staff in the company’s health strengthens their loyalty. By using data analytics, organized into interactive and readable visuals, you can clearly convey past and current reports as well as future potential. These accurate updates about your young company’s standing can relieve any employee concerns and maintain transparency.
Take Advantage of Data Analytics
Incorporating data analytics isn’t easy, but the cost doesn’t have to be more than time and patience. Understanding your company’s position in the production market and where to find new customers are powerful pieces of knowledge capable of increasing profits. Once you train yourself, or find a free training course online, you can begin teaching other employees how to analyze data. Your production company may not be as big as the others, but you’re competing on a level field thanks to data analytics.
About the Writer
Ryan Ayers has been a consultant for over five years within multiple industries including information technology, medical devices and logistics. Many clients call him the BizTech Guru. He is a freelance writer on the side and lover of all things related to business, technology, innovation and the LA Clippers.