When it comes to turning your “metrics into momentum” I often hear the same misconceptions or partial truths about using data in your business.
They seem like harmless statements but in the ocean of bad business advice and one size fits all strategies, it’s essential to be able to spot these misconceptions that may be causing you to leave money on the table!
This reminds me of my least-favorite icebreaker game called “Two Truths and a Lie”. Just thinking about it makes my palms a little sweaty.
The goal is to share two truths and one lie about yourself and the rest of the players have to guess which is which. I never think the facts about myself are interesting enough, and that the lie is obvious and perfect strangers can read me like a Hallmark movie.
Cute, and uplifting but predictable.
I tell my lie, “I am fluent in four languages” and then the discussion starts . . .
“Oh I could see you speaking multiple languages”
“That’s definitely the truth! I’ve heard you speak at least 2”
My dismal Duo Lingo streak would beg to differ. It quickly becomes clear that sometimes there’s a fine line between the lie and the truth.
Sometimes you WANT to believe something so much your brain will try to find evidence to support the story you’re telling yourself.
As an icebreaker, the game is pretty innocent but in business, these fine lines and half-truths are dangerous territory if left unaddressed.
You could be convincing yourself that you’re doing all the “right” things but in reality, you may be:
- Taking lots of action but not seeing results
- Wasting time in the wrong areas of business
- Increasing revenue but leaking profits
- Burning out your small team by not properly filling or delegating roles
So let’s play the game. . .
Can you tell me which are the 2 truths and which is the lie?
1. Knowing your business data is not enough to help you grow.
2. Tracking all of your business data will not help you grow.
3. Growing a business requires a complex strategy and system.
Take a moment to write down your guesses . . . now let’s break them down.
1. Knowing your business data is not enough to help you grow.
TRUTH
Knowing is good, and understanding is best. Don’t confuse knowing with understanding your data, those are two very different things. For example, let’s say you made $50,000 this month.
We KNOW this is a fact.
But if you are using this number to decide what actions to take in your business this isn’t enough. If I told you your goal was actually $30,000 you would celebrate and pop the champagne!
If I told you your goal was $75,000 that would immediately change your mood. Now there is an understanding of what needs to happen as a result of the data.
Did you get the pit in your stomach and start thinking wow, what went wrong? Are you starting to think maybe I need a different action plan?
Understanding the story and trends in your data in relation to your specific goals is KEY.
Let’s stop throwing spaghetti at the wall and calling it a strategy and start making strategic changes that lead to sustainable growth.
2. Tracking all of your business data will not help you grow.
TRUTH
Don’t get me wrong, tracking your data is a great habit.
I just want to make sure you’re not falling into the trap of being a data hoarder. When you take the time to track EVERYTHING it takes A LOT of time from you or your team with little ROI.
I’ve seen clients track data because they FEEL it’s the right thing to do.
Cut to months later with spreadsheets full of metrics that have no relation to their current goals and that are collecting virtual dust because they haven’t had time to review it.
I would much rather you spend LESS time tracking a few key metrics that you will regularly review, analyze, and take action on than see a completed data tracker that you ignore. For your data to be an effective tool for your business you can’t think of it as a rearview mirror, always looking at the past.
Tracking the RIGHT key metrics should force you to keep your eyes forward on the road, be focused, and proactive, and allow you to take action with clarity.
In this LESS can be MORE.
3. Growing a business requires a complex strategy and system.
False
People are complex but business is simple. Here’s the problem, a simple plan does not mean an EASY one. Of course, growing your business will take lots of hard work, there will be set backs and challenges.
Thanks to Pareto’s principle we know that 20% of the work we do delivers 80% of the results. What if you knew what those “20% of tasks were for your business and had a simple system to make sure you had more time to focus on completing and mastering those tasks?
How quickly would your business grow?
I use a 3-step system with my clients to:
1. Identify
2. Simplify
3. Magnify
One of my favorite things that happen during step number 2 is when we simplify and start releasing processes and programs that no longer serve my clients.
Queue, deep therapeutic sigh, and spa music. It’s like a weight has been lifted.
Why is this so important?
A simple system is sustainable. And sustainable growth means you can scale your business WITHOUT overwhelm or burnout.
Have you ever caught yourself saying any of these statements? To some, it sounds like we are splitting hairs but these subtle mindset shifts and changes in how you use data could have a huge impact on your business.
Your turn! Let me know in the comments: do you like to play the “two truths and lie” game?
