Where’s My DATA?
When starting a new brand, there are so many facets of the business you need to drive for financial success. Whether you are an individual or a small team, the amount of documentation passing through your company in a short period of time can be daunting. So, it is necessary to establish a system to organize the information in a way that’s easily accessible at your fingertips.
Everyone can relate to the small business owner who shows up to their tax preparer on April 1st with a box full of receipts and a few spreadsheets. Leaving the burden of deciphering everything to your tax preparer, which leads to lots of questions and causes undo stress, etc., etc., etc.
We have encountered many new businesses who have every intention of being organized but then the overwhelming responsibility of running the company gets in the way. The issue then becomes backtracking to remember who, what, where.
A few reasons why data management is key in the beginning:
Establishing a documented process in all operational aspects to your business is the building block for SOP creation. Regardless of the responsible individual at any given time, SOP’s create repeatable steps ensuring consistency.
As distribution channels increase, specific document requests from new customers can be easily accessed and provided with little effort.
If your goal is to secure funding, organization of your data is key when presenting it to potential investors. Investors are seeking those businesses who can accurately and effortlessly present their financial position and what the next 3-5 years will look like.
In the unfortunate situation of a quality issue or recall, you are in a better position to review documentation and quickly get situations resolved.
We want to further emphasize how important this information is for you when exploring and meeting with potential investors. If you do not have a true understanding (and the data to back it up) of the value of your company, investors may present you with offers that are significantly less than what your brand is worth.
In the words of one of the most noteworthy detectives Sherlock Holmes, “It is a Capital Mistake to Theorize Before One Has Data”. Without knowing your costs, inventory, and margins, it is difficult to make the right business decisions.
If you are looking for some assistance with how to develop simple, effective processes, contact us for a FREE 30 minute consultation.