There is a critical business principle that you need to learn and implement in your solo Internet business that will serve you extremely well. In all digital businesses it will become either an invaluable friend or a nightmare of an enemy.
Some stay in business for years and spend a lot of valuable daily time on managing this area of their business, while others adapt and implement an automated system that does almost all of the manual work for them.
I'm talking about implementing and operating a system of records and data keeping that will aid you in maintaining your business and your customers.
The Four C's of data that I alluded to in the title of this post are simply this: correct, confidential, customized, and consistent.
We've all heard that we are smack dab in the middle of the "information age." Business these days is all about our world of knowledge and how it can be harnessed to do business better, more efficiently, and at a lower cost.
It's about reaching varied and diverse customer markets instantaneously at minimal cost. It's also about communicating and working together in teams or partnerships to leverage personal effectiveness and creativity.
Here's what each of the C's stand for:
1. Correct. Accurate and correct information is a must in every business. You will need to keep data on:
- your products (specifications, prices, descriptions, features, and benefits to the customer, where they come from, etc),
- your vendors and suppliers (if you use them),
- your customers (personal information, how to contact, possibly user names and passwords, possibly credit card information, site preferences, etc),
- your web site and its content (information files, html page files, and other data forms that will be periodically updated),
- your marketing and advertising (where you do it, what you say, how well it worked, future ads and promotions, etc),
- your sales and financials (here accurate record keeping is a must),
- your tax records (regardless of whether you hire a tax consultant to actually prepare the forms - you will need to collect and transmit the data),
- your personal files (like ideas for new products, things you want to remember, and suggestions that customers make for the benefit of your business).
All these records can become of questionable value if they are not accurate and precise. Data is the basis on which your company is able to connect and transact business with both suppliers and customers.
If you don't adopt an accurate, swift, and automated data input and recovery system, you'll jeopardize your business life. Keeping everything in memory or on 3X5 cards is no way to do business when so many automation tools are available at a very affordable price.
2. Confidential. It goes without saying that you need to protect proprietary business information, supplier information, your customer-given personal information, and your business financial and operational information.
Online business has a special challenge in keeping all this data secure and behind locked doors. There will be some that will attempt to compromise or steal your data records - count on it happening at some point. Again, technology allows us to purchase or hire systems that will do the job of security. Make sure you always treat securing confidential business information as a top priority.
3. Customized. Great advances in data customization are taking place regularly and you need to understand how customizing data to your own particular business needs will grow and boost your solo business. Customized data will help you target your marketing, personalize your business in the mind of your customer, and more efficiently operate based on the specific wants or needs of your partners and clients.
4. Consistent. Records must be kept regularly and methodically. You can't afford to get behind in keeping data current. Make it a goal to update your records preferably daily, or at least weekly. If you get behind too far, it will become a greater burden to fix your records and may lead to a habit or tendency to let things slide.
Data is most accurate and timely when it is "freshest" or current. There are data software systems that automate much of the manual tasks in this regard.
You input the data once (or the customer or supplier inputs the information) and the system lets you apply it and manipulate it for many other tasks or uses. Your data remains accurate and consistent throughout all your business records.
Here's a no-brainer data suggestion that many of us are guilty of overlooking: always back up your data on a regular basis, at least weekly!
We get complacent about such chores, but all it takes is one incident and your entire business could be in jeopardy. I use a stand-alone external hard drive for my files, but there are several other good options depending upon your needs.
Good data will allow you to better evaluate how your business is doing, how your sales are progressing, how well you are meeting or exceeding you goals, and it will "save your bacon" at tax time.
