The Importance of Numbers in Business Operations
If there is any aspect that businesses shouldn't play down on, it's numbers. Your numbers can either make or mar your business. To ignore them is to put your business at risk.
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“Numbers keep businesses accountable, it stops them from making certain moves that are not beneficial.”
The Importance of Numbers in Business Operations
If there is any aspect that businesses shouldn't play down on, it's numbers. Your numbers can either make or mar your business. To ignore them is to put your business at risk.
Why Should Businesses Use Numbers?
Numbers are essential in business and if one ignores them, the business can crumble before it begins. It's not enough to follow trends and make speculations, you need a more solid base which would be to hold on to numbers.
Every aspect of business needs attention but numbers help you give more focus to certain areas that require more focus. As such, we'll be seeing how relevant numbers are in the different areas of business.
1. Pricing
Numbers influence pricing, one of the major challenges business owners face, is in the area of pricing. Some don't know if they should charge high or low, or if they are charging too high or too low.
You can only rightly set the price of your product when you have the actual cost of production. This is why it is important to be detailed in the production process. Knowing that what was spent will have to be recovered with extra profit otherwise you'll be operating at a loss.
2. Market Research
In conducting market research, some businesses tend to rely on theories which is not a bad idea. But numbers help you to be more precise. Production shouldn't kick off without adequate research.
How many people are likely to buy from you? What price will be sufficient for you to place on your product? What percentage of the market do you have already? These questions are not out of place.
You may have other key areas in your marketing research like product differentiation, unique selling proposition, and so on. But don’t neglect numbers during your research.
3. Estimations and Probability
Every business makes estimates concerning the market. The truth is, estimates are not just made out of the blue. There is always a foundation upon which estimates are made and that has to do with records and past occurrences.
One can make good estimates based on what has already happened before. Estimates shouldn't be made by guessing or intuition, it will put the business at great risk. There should be something to hinge on, records should serve as a guide, past trends when studied can also serve as an added advantage.
4. Market Share and Analysis
Assumptions are not always best for a business. To assume you have a larger market share solely because of how much goods you pump into the market is not enough.
The precise and clear analysis will reveal if such is the case, the numbers will tell how large your market share is. A product may be in large circulation and still not meet up to the expectations of the business. With numbers, you can know the exact market share which you have.
This way, you determine when you should slow down with production when you find that you're supplying more than what is being demanded.
5. Data and Monitoring
Data seems to have become the life wire of businesses today. Businesses lookout for data and tries to gather as much as they can. Such data includes numbers and can be in different areas such as finance and marketing.
In the case of monitoring, numbers help to determine if projections are meeting up.
Similar to budgeting, there's a high dependence on numbers because it controls the flow of income and expenditure.
6. Accountability
Without numbers, every business might go off doing what they feel is right. This is etrimental to businesses. To avoid such, businesses have to put their eyes on the numbers, ensuring that they don't go off track.
Numbers keep businesses accountable, it stops them from making certain moves that are not beneficial.
No business would see a red flag and not heed to it, by paying attention to the numbers, a business can avoid making unguarded decisions.
Numbers are very important but it's also important to note that several factors influence numbers. Given these other factors, businesses should pay attention to every aspect of their operations.
Parnda Hedima is a Business, Aviation & Research Consultant who is a member of the National Business Aviation Association. Experimental Aircraft Association, & Aircraft Owners & Pilots Association.
For more information on Business Aviation Marketing and Consultation, please contact us or call us on (239) 227-5768. We can provide marketing and advertising services to your Business and Clients.
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