5 Benefits to Freelancers from Harnessing Your Data

Being a freelancer means that you are probably doing a little bit of everything. While it may seem convenient at your size to act based on gut instinct, in reality there are many moving parts to any business regardless of scale. Breaking down and understanding each of those parts allows you to troubleshoot problems and identify sources of opportunity, which lead to increased profitability. By measuring something, you can improve it.  This is the power of data because it allows you to measure things. Financial modeling then takes that data and shows you how your actions impact your cash flow. Improving your business means more money in your bank.

This option may seem difficult, but if done with a professional it will likely make your task of collecting data easier than whatever you had been doing to collect data prior. Many things can be automated and the professional does the hard part.  Put a little effort here and it will make all the other aspects of running your business easier and clearer.

You might think that you’re too small or too creative to need to worry about data and numbers, but trust us, the benefits are worth it. Here are five benefits to freelancers from harnessing their data:

1. Stay on top of your finances. By tracking your income and expenses, you can see exactly how much money you’re making and where it’s going. You’ll know when you need to raise your rates, when you can afford to take on more work, and when it’s time to start saving for taxes.
2. Spot trends and opportunities. Data tracking can help you see patterns in your business and identify areas where you can improve. For example, you might discover that you’re most productive in the mornings, or that a certain type of project is more profitable than others. Use that information to make better decisions and grow your business.
3. Make informed decisions. When you have data to back up your decisions, you’re more likely to make the right choices for your business. You’ll be able to see what works and what doesn’t, and adjust your strategy accordingly.
4. Stay organized. Data tracking keeps all your information in one place, so you can access it when you need it. No more digging through piles of receipts or trying to remember how much you earned last month. With data tracking, everything is at your fingertips.
5. Protect yourself from mistakes. By tracking your data, you’ll be less likely to make mistakes that could hurt your business. For example, you’ll be able to catch any discrepancies in your accounts before they become bigger problems.

So, how can you start working with your data? Well let’s start with defining your overall business goals and then we can determine what data you need to collect to help clarify your journey to reaching them. You probably track data passively in many different applications or you produce a lot of data already. A proper analysis would bring this all together and paint a clearer picture of your business that will help you make more informed decisions that lead you to your goals. 

Data makes it simple to make informed decisions. Explore the possibilities for your business. Get in touch.