Many family businesses fail. Not because they lack hard work or good ideas.But because they don’t use their data effectively.
They’re flying blind.
Reacting instead of planning.
Guessing instead of knowing.
The Village Store Mentality
Think of the village general store.
It orders more of what sold last week.
It does its books to save tax.
And that’s where the data stops.
But what about the bigger picture?
Who are their customers?
What are their buying habits?
Are there trends they’re missing?
Ignoring this data means missing opportunities.
Data Isn’t New
Data isn’t a modern invention.
Bespoke tailors kept customer measurements.
Hatters kept head-shaped blocks for repeat clients.
No computers. No AI.
Just smart record-keeping.
They didn’t call it “data.”
But they knew it was the key to staying in business.
Small Business vs. Big Business
Big businesses have armies of analysts.
They slice and dice data into a hundred metrics.
They know who buys, when they buy, and why.
Family businesses often lack these resources.
But that doesn’t mean they can’t use data wisely.
Even basic information—who your customers are, what they buy, when they visit—can transform your business.
Robots Aren’t People
Here’s where data goes wrong.
A HubSpot email reminder:
“This is a friendly reminder that we have a meeting booked on:
13 Jan 2025 09:30 GMT (+00:00).
I look forward to meeting with you.”
It’s accurate.
But it’s robotic.
It doesn’t sound like a person.
Now imagine receiving this:
“Hi Stephen,
Just a quick note to confirm our meeting on Monday, Jan 13, at 9:30 AM. Looking forward to chatting with you.
James”
Still automated.
But it feels human.
The Dangers of Losing Your Humanity
In the early days of computers, people were told:
“The system says you don’t exist.”
Or, “The system has deleted you.”
The problem wasn’t the data.
It was how it was delivered.
Your business can’t afford to sound like a machine.
Not if you offer a personal service.
Using Data the Right Way
Measure the Right Things:
Revenue and churn are lagging indicators.
By the time they show a problem, it’s too late.
Focus on leading indicators—like customer satisfaction, foot traffic, or repeat visits.
Break It Down:
Complex problems often have simple roots.
Break down your process into steps.
Find the weak link and fix it.
Stay Directionally Correct:
Don’t obsess over perfect results.
Focus on whether you’re moving in the right direction.
The Bottom Line
Data doesn’t have to be daunting.
Because data is only useful when it’s humanized.
And a family business is only successful when it understands its customers better than anyone else.
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Copyright Stephen Bray 2025