Intuition and Data

A seasoned business owner who is in touch and deeply aware of the intimate details of their business operations and economic activities would tell you they "just know" when it comes to weighing costs.

Now, most of the time, when operations are small and employees are not numerous, this methodology could suffice.

However, what if the cost profile picture of a business could be as crystal clear as a perfectly reflected image of trees on the surface of an alpine lake? Intuition is refined through experience, trial and error, and mastery of knowledge. Intuition can be enhanced through the support of proper data generation and analyzation.

When it comes to the nuances of cost drivers for products or services that a company provides, intuition may be proven and support by a deeper dive analysis. Although this process can add cost, it may be offset by identifying larger costs that were hidden or misunderstood regarding their relationship to profits.

As always, a proper balance between efficiency and the value in putting in the extra effort to confirm that intuition is serving one properly should be sought to maintain a sustainable pace.