By Amaya Souarez, EVP Cloud Services & Operations at Sage

It remains a challenging time for small and mid-sized businesses right now – from record inflation and the cost-of-living crisis to the ever-looming threat of global recession and South Africa's energy crisis.

Evidence suggests plenty of SMBs are actually positive about 2023 – and a recent study by the Centre for Economics and Business Research (CEBR) for Sage found SMBs will be the businesses that lead global growth over the next few years.

But in today's unpredictable landscape, business owners understandably want all the help they can get to weather the storm. And many of the answers could well lie in the data that's already at their fingertips.

The value of existing data

Most SMBs are already sitting on a huge amount of unused data that could provide some of the golden nuggets that are invaluable to unpacking, clarifying and solving the issues that matter.

Take cash flow data, for example. Monitoring the cash coming in and out to ultimately see a business's financial position is key. Who's paying you late, and what are the trends? Who do you need to chase, and when? Is now the right time to invest in that new van or move to new premises?

Some companies struggle to break down data meaningfully. All too often, it remains siloed and of limited use to empower decision-making. It can also feel overwhelming when gathering insights from data or even getting access to certain datasets in the first place.

Having the right insights also doesn't just come from analysing data within the business. From geospatial and transport to environmental data, many public datasets are potentially untapped by SMBs. These could help unlock new opportunities, reveal new challenges, and strengthen resilience to what might be around the corner.

Data is essentially neutral, and for it to do its job, businesses must be able to read and interpret it accurately. It's relatively easy to run a report, for example, but the real question is whether the information can be captured and understood to inform meaningful decisions and changes.

Unlocking data insights through technology and humanity

Here are some practical tips to help SMBs unlock data insights:

• Identify your business objectives: Start by identifying your objectives and what data you need to achieve them. This will help you to prioritise your data collection and analysis efforts.
• Use tools and technology: Invest in tools and technology that can help you collect and analyse data efficiently. There are many free or affordable options available.
• Hire data-savvy employees: If possible, hire staff with data analysis experience, or train your current colleagues in data literacy. This will help ensure you have the skills in-house to make the most of your data.
• Keep data organised: Make sure your data is well-organised and stored in a centralised location. This will make it easier to access, analyse and help avoid errors and inconsistencies.
• Collaborate and share insights: Encourage collaboration and information sharing within your organisation. This can help uncover new insights and ensure data-driven decisions are made across departments.
• Focus on actionable insights: Rather than just collecting and analysing data for the sake of it, focus on insights that can drive business decisions. Ask yourself what actions you can take based on the data you have collected.

Data analysis is not just about technology, and it's also about having the right mindset and people in place to make the most of it. That combination – along with the agility and creativity that SMBs are known for – is a powerful formula to help them navigate the economic challenges around them, both now and in the future.