Leveraging Analytics for SME Growth: Business Lessons From a Family Storefront

Disclaimer: The views and opinions expressed in this article are those of the author and may not reflect the perspectives of IIBA.

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When people hear the words “data” or “analytics” in business, they tend to think in the context of big corporations, with teams of analysts and sophisticated software systems. But real business insights can come from the most unexpected places and in the most unlikely businesses.

My mom ran a small, wholesale and retail, frozen food business that taught me more about entrepreneurship and commerce than any textbook ever could. Every day was a balancing act—managing inventory, tracking sales, holding challenging conversations with debtors and creditors, and keeping customers and suppliers happy. Running a perishable goods business in a developing region also meant dealing with unpredictable challenges like power outages and transportation issues. What seemed like a simple family business was a complex operation requiring sharp thinking and quick problem-solving. 

Along with freezers packed with goods, our little storefront was also filled with shelves lined with handwritten ledgers that were only used to track every sale and delivery, not much else. Studying economics, finance, and accounting at the undergraduate level and later specializing in analytics, I started seeing our family business differently. Those handwritten ledgers and cash books weren't just records—they were treasure troves of information that could have been better understood and harnessed for growth. 

For instance, I was able to outline key suppliers, customers, seasonal trends, and partnership opportunities over five years. By analyzing our ledgers, I discovered our top suppliers had consistent delivery delays in the summer, while 40% of revenue came from just five loyal customers. I identified unrecognized sales spikes in November and April, and I spotted a perfect partnership opportunity with a local delivery service that shared our customer base.

But it wasn’t too late. After all, the best time to plant a tree was 30 years ago and the next best time is now.

Right out of school, I started applying some of the knowledge I’d gained to improve our family business. In 2020, I introduced a customer payment tracking system, which led to a 70% reduction in bad debt. We were losing $15,000 annually to unpaid accounts slipping through our manual records. The digital system automatically flagged overdue payments and revealed which products had higher non-payment rates. Within three months, our cash flow improved dramatically, transforming our financial stability.

These experiences taught me a lesson that’s been even further reinforced throughout my career consulting with various sole proprietorships: data isn't just for big corporations. Even small businesses can use insights from basic records to make informed decisions and grow.

These principles apply universally. Below, I discuss some of the ways they can be applied.
 

Understanding the Business Ecosystem

What seems simple at first often demands scrutiny, especially for small businesses, most of which operate in unique environments. 

It's not just about selling products—it's about understanding how everything works together. For our frozen food business, this meant knowing exactly when people bought more seafood, which customers paid on time, and how seasonal changes affected our sales.

Looking at our basic records, we discovered interesting patterns. Some customers always bought the same items, while others had specific payment habits. These insights helped us make better decisions about inventory, credit, and marketing.

Ask yourself the following questions: Is the business seasonal? What environmental and infrastructural constraints exist? What are the profit margins? Understanding customer, supplier, and competitor profiles creates a foundation for meaningful analytics implementation.

Working With Limited/Available Data

You don't need complicated computer systems to use data effectively. Sometimes, a simple spreadsheet can reveal a lot.

In my mother's case, and as with many small businesses in developing nations, available data consisted of basic transaction records: delivery amounts, customer pickups, payment schedules, and instalment records. While a small business in the US might have more structured data, even these fundamental records reveal valuable patterns in ordering and payment behaviour.

We learned to:

• Track which products sold best during different seasons
• Understand customer buying patterns
• Identify our most reliable customers
• Plan inventory more accurately

Our handwritten records became a powerful tool. One of our most valuable insights came from analyzing customer payment histories. By categorizing customers not just by how much they bought but by how reliably they paid, we could make smarter credit decisions. We learned that a customer who consistently made smaller, timely payments was often more valuable than one making large, unpredictable purchases.

By spending just a little time organizing and looking at our numbers, we could see opportunities we'd missed before.

Practical Exploratory Analysis

Small businesses don't need complex visualizations or advanced statistical models to benefit from their data. Simple analyses of order frequency, customer rankings, and supply timelines can uncover actionable insights. 

We didn't need machine learning to understand that certain product combinations sold better during specific months or that some customers preferred credit arrangements over cash payments. A simple pivot table revealing order frequencies helped us optimize our inventory. A basic chart showing customer purchasing patterns guided our marketing strategies.

These weren't just numbers—they were stories of our business's potential that helped us see patterns we hadn’t seen previously.

Improving Business Processes

For business owners who have relied on intuition for decades, introducing data might seem threatening. But analytics isn't about replacing experience—it's about enhancing it. By improving how data is collected and used, we can create a powerful synergy between traditional wisdom and modern insights

While advanced predictive analytics or machine learning can be excessive for small businesses, basic business intelligence tools combined with deep problem understanding can transform operations. Starting with improved data collection can reveal surprising insights that complement existing knowledge.

Why Data Matters for Small Businesses

Many small business owners think data analysis is only for big companies. But that's not true. Even basic data tracking can help you:

• Make smarter inventory decisions
• Understand your customers better
• Improve cash flow
• Spot potential problems early

My mom's business survived and grew not just because of hard work, but also because we learned to listen to our numbers.

Looking back at my mother's business through an analytical lens evokes mixed emotions. I see the missed opportunities and the potential efficiencies we could have implemented earlier. But I'm also immensely proud of the adaptability that later enabled growth. I also recognize the tremendous potential for small businesses to thrive by embracing even basic analytical practices.

If you're running a small business, your data is telling a story. It might be hidden in simple records, sales books, or customer notes. The key is to start looking, start asking questions, and be curious about what those numbers can tell you—whether you're looking to improve inventory management, understand customer patterns, or optimize your cash flow.

Interested in data analysis? The Certification in Business Data Analytics (IIBA-CBDA) recognizes your ability to effectively execute analysis-related work in support of business analytics initiatives. Get certified today.  

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