Business Analysis is a technique where the business will take every single available information. Be it regarding the market or their potential customers to come up with a marketing plan. Business Analysis is the pin which holds the business together. Without it, you are running your business on intuition, which could be pointless. It will also show you how well your business stands out by comparing to other competitors in similar market using your current marketing techniques. It will also give you an analysis of your previous marketing campaigns. Analysis will show you results upon which you can see for yourself if what you have achieved is great. If not, you can always change your settings and re-do the same. It will show every single progress and results.
Why is Business Analytics important
By having a company, as an investor or an entrepreneur you need to know what you are getting yourself into. You need to have all the data to back up your goals and visions for the company. We should always keep asking ourselves, if it even makes sense to make this particular move. For this reason, you need to do a Business Analysis
You check for profits. If the market shows signs of return on investment you will be encouraged to invest. Similarly if the market isn’t profitable then you will not make the move.
By analysing, you try to understand the customers. You try to find out what it is that they want or the problems they have. Then, we try to provide them with that exact product or services that caters to them.
1) Allows company to control their cost & identify efficient ways
Businesses often fail because of poor financial management strategy or a lack of planning. For your business success, developing and implementing financial and management systems is vital. It is important to keep updating the original business plan. When reviewing your finances, It benefits to consider the following:
- Cash flow
- Working capital
- Cost base
2) Faster and Better Decision Making
We should balance our ability to respond quickly with a clear strategy for our business. This will help you decide whether the actions taken are appropriate or not. You should ask yourself if any internal factors is holding the business back, and if so, what can you do about them? Various aspects like Premises, Facilities, Information Technology, People/staff and skills matter.
3) Conducting a competitor analysis
Since you have been running your business for a while, you have a clearer idea of your competitors. As gathering more information may cost time, money and effort, there are many benefits to knowing more about what your competitors are up to. Any type of information about competitors will be really useful to you. Questions to ask about your competitors should include who, when,where,what.
You will find it useful to do a strength, weakness, opportunities and threats analysis. This will give you a preview of how you are performing in relation to the market in general.
4) Conducting a customer and market analysis
From that marketing strategy you created when you started your business plan, you have already created a plan that meets your objectives. When you are reviewing your business performance, you will need to assess your customer data base and market positioning. You should keep updating your marketing plan as often as your business plan. A business review offers you the opportunity to take a step back and review your plan to look again at factors such as:
- new and emerging services
- changes in your customers needs
- other external factors such as the economy, new technology and so on.
Asking your customers for any kind of feedback will help to identify where improvements can be made. Like for example, to your products, services, your staffing levels or your business procedures. Also at the same time, you learn a lot about your customers like their hobbies, interests, demographics and so on.
At the same time, it is important to remember that reviews can be very effective. They have the ability to give your business the flexibility it requires to beat off competition at short notice. It’s very important to think through all implications of any changes. You will need to plan your finances and resourcing carefully at all times.
5) Breaking down strategic review
You should stand back once in a while and review your business performance. The areas you need to look at are:
- The market performance and direction
- Your products and services
- Operational matters
- Financial matters
- Your organisation and your people
Consequently, When you feel that all the above-mentioned areas are strong, you can start to plan for the next phase and build a strategy to develop your business. If there are areas that need attention, it’s better to deal with them now so that you can move forward. There are ample variety of growth options for every business. It is important that you settle on the right method for you.
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