AI
Why should I use AI when working with Data?
Working with large data sets can be very time consuming and often overwhelming. AI thrives on extensive data. Due to several key capabilities, it is...
This is a 3-part guest blog series by guest author Sarah Nell-Rodriquez, CEO of Be Data Lit, on helping small businesses grow and thrive with data.
Running a small business is no joke. You’re likely juggling daily operations, keeping customers happy, and wearing more hats than you ever thought possible. And let’s be honest—of course, data isn’t at the top of your list. You’ve got a million other things to handle. But here’s the kicker—data should be. If you want to move from just surviving to thriving, data is the game-changer you’ve been missing.
Here’s the catch: many small businesses don’t have access to the same data-driven insights that big companies use to stay ahead. That leaves you guessing about what’s working and what’s not—and guessing isn’t a strategy. Let’s fix that. Below are 5 common problems small businesses face and how data can provide the solutions you need to take control of your business.
1. Unpredictable Cash Flow
The Problem
Cash flow is the lifeblood of your business, and when it’s unpredictable, everything else feels shaky. Sudden dips in revenue or unexpected expenses can quickly lead to financial headaches.
The Data Fix
By tracking sales patterns, customer payment habits, and expenses, you can forecast your cash flow and avoid nasty surprises. Simple tools like spreadsheets or free accounting software can help you stay on top of your financial health.
Example
Imagine you’re running a café. By tracking sales data, you notice a drop every Thursday. You might decide to introduce a mid-week promotion to boost sales and smooth out the dips.
Reflection:
When’s the last time you reviewed your cash flow? Are you confident in your ability to forecast the next few months?
2. Customer Retention and Satisfaction
The Problem
Many small businesses focus so much on attracting new customers that they forget to keep the ones they already have. Spoiler alert: keeping existing customers is way cheaper than finding new ones.
The Data Fix
By analyzing customer behavior and feedback, you can figure out what keeps them coming back—or what’s driving them away. Use this data to build loyalty programs, offer personalized discounts, or improve your service, and watch your retention rates climb.
Example
A local bakery started using feedback surveys and learned that their weekend hours didn’t suit many customers. By adjusting their schedule, they saw a 20% increase in foot traffic during those times.
Reflection
Do you know why your customers stay—or leave? When’s the last time you checked in with them?
3. Inefficient Marketing Efforts
The Problem
Marketing can feel like a money pit when you don’t know what’s working, and for small business can take upwards of 40% of your time. Without the right insights, you’re basically throwing spaghetti at the wall and hoping something sticks.
The Data Fix
Track the performance of your marketing channels to see which ones are bringing in real value. Whether it’s social media ads, email campaigns, or good old-fashioned word-of-mouth, data helps you focus your budget where it matters most.
Example
A small clothing boutique tracked which email campaigns had the highest open and purchase rates. They discovered their “New Arrivals” emails performed best, so they doubled down on that strategy, leading to a 15% sales boost.
4. Poor Inventory Management
The Problem
Overstocking leads to wasted resources, and understocking means missed sales. Finding the balance is tough without the right tools.
The Data Fix
Analyzing sales and inventory data can help you strike the perfect balance. Know what’s flying off the shelves and what’s gathering dust so you can make smarter restocking decisions.
Example
A small boutique used sales data to realize that winter coats weren’t moving as quickly as expected. They offered a mid-season sale before getting stuck with too much leftover stock and avoided a significant loss.
5. Lack of Insight into Sales Trends
- The Problem
Without understanding your sales trends, you’re left in the dark when it comes to predicting demand. That’s how you end up with empty shelves during a busy season or too much inventory during a slow period.
The Data Fix
Sales data helps you identify patterns over time, making it easier to prepare for peaks and valleys. Knowing when to stock up or offer promotions can help smooth out those revenue fluctuations.
Final Thoughts
Running a small business is full of challenges, but the good news is you don’t need to go it alone. By using data to solve common problems like cash flow issues, inconsistent marketing, or poor customer retention, you can take control of your business and start making decisions that drive growth.
It’s time to stop guessing and start thriving. Ready to take the next step? Let’s work together to build a data strategy that makes sense for your small business. Reach out today and start making data work for you!
Readers can contact Sarah by visiting her website linked below
About the author
Sarah Nell-Rodriquez is a driving force in data education, shaping strategies that empower individuals and organizations to thrive in today’s data-driven landscape. At Tableau, Sarah built out multiple foundational courses and led the product strategy, ensuring that data education aligned with business goals. She also traveled the world, teaching Tableau’s network of partners, customers, and trainers how to effectively teach data. Her global work positioned her as a leader in scaling education and ensuring data became a tool for success across industries.
Through Be Data Lit, Sarah now wants to help others “get lit” with data education. She’s focused on making data accessible to entrepreneurs, small businesses, and data professionals. Her platform-agnostic approach enables organizations to scale internal data education as AI reshapes the landscape, ensuring that data education aligns with real-world goals and customer needs. At Be Data Lit, Sarah is dedicated to empowering individuals and organizations to use data for growth, empowerment, and long-term success.