Efficiency has become a business buzzword over the last few years. This is in large part because of the ability to collect and look at real-time data in a way we weren’t able to do before. This data is invaluable but it has paved the way for more pitfalls for a business owner.

I will be the first person to tell you – the data is important and it’s something that I’m constantly looking at and trying to get more of. But, if you focus too much on this great information, you will lose sight of the bigger picture.

Paralysis by analysis is a real thing and rampant with business owners. With all this information, there needs to be a constant vetting of the business all for the sake of efficiency. But here is the problem, you can be efficient at things that don’t matter or are a waste of time.

For instance, you may be trying to be more efficient with your time by qualifying leads over the phone. This may seem like a great idea but this will lead to fewer appointments and cost you money. You may set a minimum to order at $500, all in the name of efficiency or to not focus on the small stuff, but that will run a lot of great potential customers out of your store. Many of your largest customers may have started out with a very small order.

Efficiency or Revenue?

Efficiency is great but revenue is better. Profit is even better than that! Never lose sight of your goals in the numbers. Never lose sight of the bottom line in the name of efficiency.

Sometimes, you have to go make it happen. It’s better than sitting around thinking of ways to be efficient. Do that while making it happen! Many people gather data and do nothing with it, what a waste! Streamline the most important metrics and focus on the most important ones.

The data is great, efficiency is great as well. But, you need results. Action always beats inaction.