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In a business world driven by data, most businesses realize statistical analysis is important. The word statistical analysis creates fear in people, which has led to an increased demand and statisticians during the past decade. Professional statisticians organize and translate enormous amounts of data to concepts everyone can understand. There are several ways statistical analysis can help improve a small business bottom line.

First, statistics and data analysis can improve small business operations. Various statistical techniques help to pinpoint the exact problems in your small business, allowing you to solve these problems and become more profitable. These statistical techniques can also apply to your people and their productivity. These techniques will allow you to monitor your staff’s productivity and make necessary improvements. For example, if an employee struggles with their workload, you can offer informed suggestions about improvement.

Second, statistics and data analysis can apply to company finances. There are bookkeeping programs and auditing software for your computer. However, this data will not do your company any good if you do not understand this data as a financial accountant would. Once you understand this data, you can make better financial decisions for your company and be able to organize your budget. Once you have your budget organized, monitor your expenditures and use statistical analysis to discover variances and the underlying cause. Statistics and statistical analysis also helps when estimating quarterly or annual revenue projections.

Third, you can find otherwise undiscovered trends in your business that can apply to business growth. For example, knowing what your customers want and demand is key to running a successful business. There are computer programs whose purpose is to predict future trends. A professional statistician (or a manager) can take these trends into account when adapting to their environment. Trends can also show a chance for the company to push ahead of conventional thinking and set new standards.

Fourth, statistics and data analysis can improve marketing of your business. With the internet’s explosion, businesses now can access analytical tools from social media sites and search engines, and the company itself. This is important because of the need for businesses to understand consumer behavior and activity. The better an organization understand its customers, the better able it will be to satisfy their needs.