Your business has experience. But does it have a memory? — Nik Zirwatul Fatihah

OCTOBER 13 — Small business owners possess a wealth of knowledge about their operations, such as peak sales times, popular products, and trusted suppliers. However, this experience does not always translate into effective business management. The owner may instinctively know when a day will be good or which ingredients remain unsold, but they might not fully understand the impact of these patterns on profitability or waste.

For instance, a hawker who has been selling food for several years might simply state, "I already know my business," without realizing that recognizing a pattern does not equate to leveraging it for improved decision-making. A savvy business would know not only which items sell most but also whether they generate the highest profits, and whether unsold ingredients result in significant monthly waste.

As businesses grow, the volume of information increases, making it challenging to manage everything in the owner's head. Cash payments, QR payments, delivery platforms, and online orders add to the complexity. The sheer amount of data can overwhelm the owner, leading to ineffective record-keeping and missed opportunities for improvement.

The key to enhancing a small business lies not in implementing expensive software or complex accounting systems but in establishing a simple system that captures essential information. A notebook or spreadsheet can suffice to track stock levels, costs, and customer preferences. The crucial aspect is using this information to identify patterns and make informed decisions.

Begin by asking a single question: What can I learn from my experience to improve my business? Focus on one problem at a time, such as reducing food waste or optimizing profit margins. Recording relevant data for a month can reveal valuable insights. For example, tracking food waste might show that a month's worth of unsold ingredients amounts to a substantial RM3,600 over a year.

However, it is crucial not to overwhelm the owner with an excessive record-keeping system. Concentrate on what is necessary to make one decision better. If certain days are consistently slow, analyze those days' sales. If specific customers seem to disappear after their first purchase, examine their purchase patterns. By addressing the root causes of problems, the business can evolve and improve over time.

Ultimately, the goal is to transform the business into one that learns from its owner, rather than merely accumulating information. A better routine, clearer records, reduced waste, accurate pricing, and more efficient purchasing decisions are tangible benefits that result from applying experience to the business. Experience does not have to be confined to the owner's head; it should become an integral part of the business itself.