Family Business Analytics
Family business analytics can be the key to growing your family business in size and profitability, significantly - according to leading family business expert Don Schwerzler. “Data mining is not just a strategy for large companies, it is a strategy that can be applied to every family business regardless of size or type of business.”
Many family businesses owners have a “resource” that is seldom recognized or understood - a rich history of transactional data that can be a treasure trove of insights to improve the operational characteristics of their business.
“Family business owners should take time to better understand how data mining can enable them to make better informed, data-based business decisions,” suggests Schwerzler. “Family business analytics can be the process for helping a family business owner realize the true potential of the business.” One characteristic we have discovered with our successful family business clients - the decision making process is moving away from relying on "intuitive" decision makers to an organization that is making data-based rational expectations that enable them to outthink and outperform their competition.
Schwerzler has been studying and advising family business entrepreneurs for more than 40 years and is the founder of the Atlanta-based Family Business Institute and their web organization Family Business Experts.com
Family business analytics is more than simply having your financial managers reviewing financial information – but understanding the operational analytics for every department. For some helpful information on Operations Management we recommend Southern Business Research and their affiliated organization Southern Business Research Analytics (SBRA). The scope of services for SBRA includes:
Ad-hoc or On-demand Research
Business Plan Research
Building Target List
iii. Contact Details
iv. Other Company Details
i. Uploading Leads
ii. Running Campaigns
iii. Updating/cleaning CRM
Social Media Management
Financial Statement analysis
BUSINESS SUPPORT SERVICES
Online Administrative Tasks
QUESTIONS? Use the "ASK THE FAMILY BUSINESS EXPERTS" form !
One of the best methods for assembling and understanding strategic analytics can be produced by using a simple Enterprise Resource Planning (ERP) system. Key here is the “grass roots” application of technology that can help a family business owner how the departmental decision making process can impact the performance of the business. Understanding the family business analytics can help to ensure that the management team is connected to the goals and objectives of the strategic plan for the business.
“When a family business owner asks me about the best way to introduce a son or daughter to the family business – the best way is for them to study the strategic analytics of the business,” suggests Schwerzler. “The NEXTERS tend to be technology savvy - and understanding the analytics of the business can help them make important and significant contributions to the business – quickly.”
Data mining is much more than just understanding operational data. AI technology can now translate past performance data into predicative analytics – to predict trends and future possibilities. Predictive analytics can be a powerful addition to the classic 4 P’s of Marketing!
According to Schwerzler, a good first step for family business owners to take to gain a better understanding of the analytics of their family business is to conduct a SWOT ANALYSIS with their management team. It is easy to do and can generate significant insights from the brainstorming exercise! Best results can be realized by using a family business facilitator to lead the family business planning sessions at family business meetings and family business retreats.
Family business analytics can be important as part of the succession planning process for a family business – especially if the exit strategy of the owner is to sell the business. Analytics can be used to ensure that deal is maximized when “cashing in” is the retirement planning option for the owner
Strategic analytics can also be important for a family business finance expert in finding funding or for developing strategic partnerships.
If you are interested in learning more about strategic analytics and your family business, simply use the ASK THE FAMILY BUSINESS EXPERT form for a fast and confidential response.