Go by Your Gut, But Validate With Facts and Figures

"Trust, but verify"your target market and where it makes most sense
This is a quote from Horatio Caine (played by Davidto put those bets. In short you need -- drum roll please
Caruso) in the popular CBS series CSI Miami. It was-- business intelligence!
also the signature phrase of President Ronald ReaganFrom the boardroom to the home office
when discussing relations with the Soviet Union. AsYes, it is true that business intelligence (BI), also known
small business owners, many of you tend to rely onas analytics, used to be expensive and time
gut feelings to make some important decisions. A lessconsuming. It used to be a fancy phrase meant for
charitable way of looking at it is that you are makingboardrooms of large corporations. However, it is as
those decisions based on emotional feelings such asimportant for smaller businesses as it is for larger. In
ego, insecurity, fear and greed. Some of thosefact, considering that smaller businesses have much
decisions can make or break a SMB such as yours. Itless financial resources at their disposal and do not
is prudent to challenge those decisions by collectinghave any resilience to recover from bad decisions, BI
more facts and figures.becomes all the more critical for them. Nowadays,
Decisions, decisionsPCs and servers have become a lot more powerful
Let us take an example. If you need to make decisionsto do the heavy number crunching needed. And thanks
about where and how to spend your scarceto free open source BI software, these reports and
advertising dollars, you know it is a huge gamble.analysis can be done at a cost that is affordable to
However, especially if you are doing business online,small businesses.
you are already collecting mountains of data - theIntuition is valuable, enrich it with data
number of visitors to your site, the number thatTo sum it up, it doesn't mean that you small business
converted to leads and the number that actuallyowners should abandon the value provided by the gut
bought something and so on. In addition, you also havefeelings and intuition that you bring to your
access to demographic and other data - income, age,decision-making every day. It simply means that you
geographical data - freely downloadable from theare going to have to start validating it with more facts
government web sites. You need to be able toand figures that only the right technology can make
analyze your data cross referencing it with theavailable.
demographic data to get actionable insight into who is