Data Driven Decisions

Source: Wise Insights

A few simple pieces of data, such as measurements of the box and back seat, would have saved this guy some time and energy. A small dose of realism probably wouldn’t hurt either.

Common traits of every business owner, regardless of industry or size, is they are heavily invested in their business and are juggling many priorities. Limited time, coupled with being close to business operations, creates a tendency to make “gut-based” decisions rather than data-driven decisions. Like the guy in the photo, sometimes a business owner really wants to get the box in the car, but it just doesn’t fit. While going with your gut cannot be wholly discounted, data should always be a primary driver of business decisions. According to one survey, decision making is up to three times more effective when using data.

In this blog series, we will explore leveraging financial data to drive decisions. The balance sheet and two ratios derived from it - Quick Ratio and Debit-to-Equity Ratio - are up first.