Speaker 1: Sometimes we look at tracking numbers and our production and think, wow, that's a lot of time that we're wasting. But the truth is, it's what's going to tell you what to do in the future. And if you aren't doing it, you're going blind. Hi, everybody. Welcome back to the channel. I'm Neil Winteregg with Matterhorn Business Development. And it has been a little while since we brought you some new content. And so we are back. And I'm going to start off here today with the first video of a series that we're going to be doing talking about statistics and the value of statistics for running a business. The reason we're going to be talking about that is because I've seen a lot of things in the media and in the news regarding bad employees or bad management or the silent quitting phase that's going on. So I'm going to be talking about some of these things and giving you some ideas on what you can do to be in control of your business. And I want to thank our channel sponsors, Metapulse, who we use to actually track our own statistics, as well as the statistics of our clients and the businesses that we are working with. So if you are interested, click down below on the Metapulse link and you can get a 14-day free trial. Now, I'm here to talk about statistics because it's the number one thing that we get comments on from some of our videos in the past. And they are usually comments of disgruntled employees and employees who probably shouldn't be working at the jobs that they're at. And they're saying, oh, you know, statistics are terrible. They're a waste of time. I don't need a statistic, this, that, the other thing. And it's really a misunderstood concept. And so today I'm going to break down the number one thing that you can actually use statistics for in your business. And I'm going to look at this from a production perspective of the business and the profitability of the business. Let's say you make bricks and you have three different types of bricks. And every week or every month or whatever it is, you look at the financials of the company and you go, wow, look how much money we've made. And if you just look at dollars, you're going to think that the business is doing really well. But if you actually looked on a weekly basis, how many bricks you were actually producing of your three different categories, you might see something different. Let's say your top of the line brick is your most expensive brick. And it's also the most profitable brick. Your middle of the line brick is medium money. Okay, profit. And it's something that you should focus on. But it's not the priority over your super profitable bricks. And then you got your entry-level bricks. The bricks that people buy, they're cheap to make, they're cheap to buy. And they maybe are good for accommodating or going along with some of your other brick patterns. But they're really there so that people find out about you and then maybe want to buy some of your other bricks. So if you're looking at your financials every week or every month, you're going to go, wow, we made $100,000 this month in brick sales. This is amazing. We're happy. But if you actually looked at all three of your brick manufacturing lines and looked at them from a statistical perspective, you might find out that the production of your top of the line bricks has actually gone down. And the production and then sales of your lowest category of bricks, your least important brick has actually gone way up. Meaning you're making less money, but you're putting the same amount of effort into producing these bricks. An executive looks at these different types of breakdowns and based off of what he sees with these statistics, will make changes and adjustments to how the company is doing. So if I'm an executive and I see that our production and sales of our top of the line brick is going down, that's the first thing I'm going to focus on. And I'm going to go in there and I'm going to find out maybe that we have had a problem with sourcing materials or we have lost some employees who make the top of the line bricks. And so therefore, we're putting our attention on the easy stuff or maybe we had a machine go down and nobody thought about fixing the machine because we had all these other bricks to make, so we stopped caring about it. The executive is focused on the maximum production and the maximum profit of the business and taking care of the employees along the way. Without proper statistical analysis of what's actually happening in these subcategories, you might be putting a lot of effort and resources into something that doesn't warrant it. And if you just look at money and dollars, you're not going to see that you are losing money in certain areas because you're going to think, well, we made as much money as we did last month. Well, you did because you made more cheap bricks and sold more cheap bricks, which have zero profit or very little profit compared to your highest category or even your mid-range category of bricks. This is where statistical analysis comes in. A good leader and a good executive is not focused on the dollar amount, but how we're getting there and how to fuel the fire, so to speak, to make more of the best bricks, your most expensive category, because we're not interested so much in this least category unless we're selling lots of expensive bricks, lots of medium bricks, and no inexpensive bricks. Well, why is that? Well, an executive is going to go in and find out why aren't we making and selling these inexpensive bricks when everything else in the company is on fire and doing the best it's ever done. That's a good executive. Coming in, finding out what's going on, finding the stops, removing those barriers, keeping the employees happy. Without proper statistics and without proper knowledge of your business, you're going to be blind because this big executive could sit up there and think that they're making money only to find out that they're losing money and by the time you spot it, it's too late. Then what happens? Well, the company gets smaller, you have to lay off staff, you downsize, you aren't taking home a paycheck, et cetera, et cetera, all because you weren't looking ahead. Statistics let you find out what we were doing versus what we're doing now and figuring out which one works better. Do we do it this way or do we do it that way? Well, you look at your graphs. The statistics tell you what was working versus what isn't. A person is going to tell you this worked better but then you look at the numbers and you find out it didn't work better. And if you trusted your entire future business knowledge off of the word or comment of one employee, you might go down the wrong path. Now, I'm not saying the employee's wrong, maybe the employees liked it better that way. Well, that doesn't necessarily mean that that's good for the business. You have to figure out what works for the business based off of the numbers. If you aren't keeping track of these statistics, you will invest time and money into time sucks and lose money and you will be hurt by that. All because you went to an idea or an opinion rather than what the numbers told you. So statistics are an analysis. They tell you what to do or what you were doing that was working and then they make you keep doing that over and over if you want to see these numbers doing better. So that's a broad overview of what we would use statistics for in a production area, as a manager or as an executive interested in the future of the company and the profitability of a company. In one of these other videos, we'll be getting more onto employee management and things of that nature with statistics. But I'd love to hear your comments down below. I can only address so much in a six or seven minute video. So if you need help or you have questions with statistics or management, just contact us below at adventure2profit.com and we'll help you get there.