Category: Data Insights

  • Before The Dashboards

    How to Set Your Business Up for Clean, Usable Data

    Many business owners don’t know where to start when we talk about best practices. At the end of this read, you’ll have the knowledge and the resources to guide you through establishing best practices for data entry – leading to an easier transition when your team is ready for data analytics and dashboard build-outs. From what I’ve seen, those who lack the consistency and knowledge of how to collect data, where to collect it, and how to maintain it are the ones who write off data analytics as something out of reach for their business. I want to walk through the actual steps of getting you to a point of confidence and clarity with your data entry.

    First, why does this matter? It’s fairly simple, but it holds plenty of weight. Every dashboard you’ll ever look at, every report you’ll ever read, and every decision you’ll ever make from your data starts here – at the moment someone types something into a form. If that entry is inconsistent, mislabeled, or missing, it doesn’t just sit there quietly. It gets pulled into your reports, baked into your numbers, and eventually shapes decisions built on information that was never right to begin with.

    The Foundation

    First, we have to give everything – and I mean everything – a unique identifier. Clients, crews, employees, jobs, quotes all get their own ID, consistent across every sheet. A client’s identifier is the same on the quote as it is on the job and the invoice. This is absolutely the most important piece to get right before preparing for an easy data integration process. Without IDs, your only way to match a quote to a job is by name, and names are unreliable. When working with data, “Michael,” “Mike,” “mike,” and “Mike ” are all different entries. Add a last name and the opportunity for error widens even more. An ID ties every record back to one canonical entity regardless of how the name was entered – it prevents duplicates, joins your data together, and future-proofs anomalies.

    Here’s what that actually costs a business without it. Say a landscaping company believes it has 340 active clients. Without IDs, “Mike Johnson” might exist as three separate records – one from the quote, one from the job, one from the invoice – entered slightly differently each time. The real number of active clients is closer to 310. Every average built on top of that count – revenue per client, jobs per client, close rate – is quietly wrong, and nobody notices until the numbers stop making sense next to what the owner knows to be true on the ground.

    Consistency

    Uniform templates and forms allow for clear standards and a clear process for how to fill them out. Typically, in small businesses, the owner sits down and creates the exact templates and forms needed, in great detail. After creating them, actually filling them out – with any potential anomalies in mind – helps establish a foundational format and process. Then comes potentially the most important part: replicating that through training the rest of the team. Two employees may have different opinions of what a term means, so clarifying that up front matters. If one form says “location” and one employee interprets that as county while another uses city, it creates inconsistency that’s invisible until someone tries to use the data.

    That kind of small gap compounds fast. A report meant to show “jobs by location” becomes unusable if half the team logged county and half logged city – the report isn’t wrong and loud, it quietly undercounts every location that got split across two different labels, and the owner has no way of knowing which numbers to trust.

    The final part of consistency is audits. No matter how clear the templates are, how much training you do, or how much follow-up comes with it, there will still be mistakes. Audits help identify who, when, and how those anomalies happened. That allows the business to run targeted training – not one-size-fits-all, but specific to how that employee is getting it wrong. This is where standards and process make a lasting impression.

    Timeliness

    We tend to push off documentation. Every industry does this – I have yet to meet someone who enjoys stopping mid-work to reiterate what they just did. But documentation is how we measure growth, and timeliness is a huge part of getting it right. The closer the documentation happens to the actual event, the better. Ideally, a system or workflow assigns a client ID and quote ID and logs the quote the moment it’s sent. That’s not always feasible, but it can be approximated with process.

    Delay has a real cost. A crew member who logs a job three days later is working from memory. A job that actually took five hours might get logged as four, or a material cost gets rounded because the receipt is buried in a truck somewhere. On its own, one estimate is a rounding error. Across dozens of jobs a month, that drift compounds into a labor-cost or margin number that looks precise but isn’t actually true. I’d avoid setting documentation deadlines any looser than end-of-shift, though I do see clients land on end-of-week as their standard. It opens the door to more error, but it’s still better than no deadline at all.

    Access

    Next, we want to limit who has access to input data. Role-based access usually works best here – the goal is to restrict data entry to specific people to reduce inconsistency. This gets overlooked because it feels counterintuitive: more people submitting data should mean more data. But the value comes from consistent data, not from the volume of it. Giving only managers access to a given process or template means less general training, more targeted training, and higher consistency across the board.

    That said, don’t over-correct into a bottleneck. If only one person can submit a given type of record, that person becomes a single point of failure – vacations, turnover, or a busy week can stall data entry entirely. Two or three trained submitters per role is usually the right balance: tight enough to protect consistency, wide enough that the business doesn’t grind to a halt when one person is out.

    Training

    Templates and standards only hold up as long as the people using them understand why they exist. That’s why training can’t live only in the head of whoever’s been there the longest. When a new hire learns the process informally, from whoever happens to train them that week, the standard drifts a little more with every new employee. By the time you have five years of “however so-and-so explained it,” your data isn’t following one system anymore, it’s following five slightly different ones. Building the templates and the standard into actual onboarding (not just handed off as tribal knowledge) is what keeps the process intact as the team turns over.

    Centralize

    A cloud-based system isn’t strictly required, but I’d push back on calling it optional. A local spreadsheet on one laptop is one crash, one spilled coffee, or one accidental deletion away from losing months or years of records – records that can’t be recreated after the fact. Platforms with automatic backups protect against that outright, and they also make the data easier to organize and access as more people need to touch it. Backing up any document you keep should be a standing part of your routine.

    Organization

    Organizing clients by as much detail as possible pays off down the line – city, service type, frequency, lead source. Once the basics are solid, capturing adjacent data like material cost, labor cost, and subcontractor activity adds even more value for your team to work with later.

    Automation

    Once the process above is running consistently, automation is the next lever – but it only works on top of good habits, not instead of them. Automating a messy process just produces mistakes faster. What automation actually buys you is the removal of the manual step where most errors creep in: instead of someone retyping a quote into a spreadsheet, the form submission pulls straight into it. It’s more technical to set up, which is why it sits at the end of this list rather than the beginning but for a business with the foundation already in place, it’s often the single biggest time-saver available. I would caution from implementing automation without the foundational process. When the automation inevitably fails, it makes it difficult to troubleshoot without that prior knowledge.

    The Payoff

    None of this is exciting work, and it’s rarely the reason someone starts a business. But it’s the reason a dashboard build-out takes two weeks instead of two months of cleanup first. Every identifier assigned, every template followed, every record logged on time is one less thing that has to be untangled before your data can actually tell you something useful. Get this part right, and the transition to real analytics – the dashboards, the trend reports, the numbers you can actually act on – becomes the easy part.

    If you like work from a checklist rather than re-read this, we’ve turned these steps into a free, downloadable guide (available under Resources on our website) that breaks each one down into measurable actions you can start on this week.

  • The Data Triangle

    3 components to get the most out of your data

    Data is a tricky tool. It can have an incredibly positive impact on decision making, or a completely negative one, if not handled correctly. Clive Humby made the point back in 2006 that data is the new oil. Raw data has to be processed just like crude oil has to be refined before it has any value – and oil that’s mishandled doesn’t just fail to help you, it causes a spill. Without the right tools and know-how, data can hurt your company just as easily as it can help it.

    The small businesses I work with have the most to gain, and the most to lose, from trying to implement data on their own. Done right, data leads to understanding, understanding leads to action, and action leads to growth. But two mistakes I see most, no matter the size of the company, are: not understanding the numbers properly, or taking the context of the business and running with it — disregarding the numbers that back it up.

    There are three components necessary to get the most out of your data: Context, Numbers, and Visuals. Each point of this triangle needs the other two to function effectively. Let’s walk through each one.  

    1. Context

    Context is what’s going on in or around your business and industry that provides insight. It generally comes from three periods:

    • Historical: what has happened before – what solutions worked, what failed, and the circumstances surrounding it.  
    • Current: immediate awareness of the environment and conditions you’re operating in right now.
    • Future: with current and historical context together, we can anticipate what’s coming.

    Bring that into the trade world. A landscaping company in Ohio has different context than one in Texas. The seasons differ, the fertilization schedule changes, and so on. Knowing how terminating a service line could impact total revenue and gross profit is valuable context. Without it, a dip in revenue from one month to the next can psych you into taking action you don’t actually need to take. Context explains the numbers and allows you to effectively interact with the visuals.

    Here’s what that looks like without it. Say a power-washing company sees revenue drop 15% in February compared to January. Without context, that number looks like a warning sign, right? Maybe the crew is slipping, maybe a competitor is undercutting on price. An owner reacting to the number alone might cut marketing spend or eliminate a service line to protect margin. But if February revenue drops 15% every single year because of weather, the “problem” isn’t a problem at all – it’s a pattern. Worse, if that owner cuts the wrong line in a panic, they might be cutting their highest-margin offering based on a number that never needed fixing in the first place. We could use that to alter our operations and marketing every February.

    2. Numbers

    There’s a myth that carries a lot of weight in our world: “the numbers don’t lie.” I’d argue they certainly can, if you don’t confirm they’re reliable. You’ve probably heard the phrase “correlation does not equal causation” – two things moving together doesn’t mean one is causing the other.

    Back in college, I ran a small experiment on exactly this. I set out to see if household income could explain birth defect rates – something that, on the surface, should have almost nothing to do with the other. What I found: the lower the household income, the higher the rate of birth defects. I wrote it up like a genuinely interesting discovery, and I intentionally saved the deeper statistical check for the very end of the report.

    Here’s why that mattered: a statistical model can tell you not just whether two things move together, but how much one actually explains the other, and whether it’s plausible that one is causing the other at all. In my case, the two numbers moved together, but the model showed the income figure barely explained the birth defect rate – nowhere near enough to support the claim. On the surface, “lower income causes birth defects” could look true if you only trusted the numbers moving together. Add that deeper layer, and it falls apart.

    The real explanation? Lower income correlates with higher stress, higher stress correlates with higher smoking rates, and smoking during pregnancy correlates with birth defects. That chain explains the pattern far better than income alone – but without context, you could easily convince someone that lower income was the cause.

    I don’t run a full statistical check on every number that crosses my desk, but I do double- and triple-check my numbers, because I know how they can lie. No one likes statistics – I don’t think you want to hear about how R2 was low, correlation coefficient was high, and β was weak. But there are easier ways to trust the numbers. The easiest way being can your data be explained by context outside the numbers themselves. If they can’t, that’s usually when a deeper check is the right next move. Numbers help explain the context, and they set expectations for what the visuals should show.

    3. Visuals

    Some people think visuals tell the whole story on their own. On the contrary, visuals are interpretations of the numbers – nothing more, nothing less. As humans, we understand pictures fast. Our brains process shapes, colors, and patterns almost instantly, which means there’s a lot less mental translation happening when you’re looking at a visual – and a good visual can carry a surprising amount of context on its own. Reading a spreadsheet and trying to spot where and how numbers moved over time is tedious work. A line gradually climbing toward the top right of the screen tells the same story in seconds instead of hours.

    Visuals lead to insight, and insight leads to action – which makes choosing the right visual for the numbers significantly important, even if that means a visually repetitive dashboard. A simple, effective dashboard is worth more than a flashy one. When you’re looking at something that adds up to 100%, pie charts, stacked bars, and area charts work best, because the shape itself represents a whole, with each piece as a share of it. A line graph, on the other hand, is what you reach for when you’re showing revenue over time. I’ll admit, I reach for a fancier chart now and then – but more often than not, the simpler the graph, the faster we can act on it.

    How This Connects

    Have you ever spent hours, or days, studying a topic or trend, and then had to explain it to someone in seconds? The human brain can process a visual graph in roughly 80-500 milliseconds – much faster than I could get through the first sentence of an explanation.

    If I tried to walk you through how revenue increased over time, except for an odd dip in month seven – which is strange, because we actually added a new crew that month, but we also cut a service line with margins below 10%, and there was a lot of bad weather – you might, politely, ask me to stop talking. But if I handed you a dashboard on revenue alongside a plain-English explanation, you’d understand why the numbers look the way they do, and you’d have the confidence to act on it.

    That’s what happens when the three pieces work together. But it’s worth naming what happens when one is missing: visuals without context create false confidence – a clean-looking chart can lead you to the wrong conclusion just as easily as a messy spreadsheet. Numbers without visuals rarely get looked at closely enough to matter. And context without numbers is just a story – one that might feel true without actually being true.

    As a business owner, it’s important to know your numbers, and even more important to understand them. Context, numbers, and visuals together give you that opportunity – and with it, the ability to make confident, informed decisions that move your business forward.

    If you’re not sure which leg of the triangle your business is missing, take a look at some of our free resources for guidance.