Financial reports can feel intimidating, especially for founders without a finance background. But understanding the basics can dramatically improve decision-making and confidence. In this practical guide, Rebecca Nankya Ssemugabi breaks down how to read a balance sheet in simple, everyday language, supported by a hands-on balance sheet generator you can try yourself. M ost founders don’t struggle with running a business. They struggle with understanding the numbers behind it. And few reports feel more intimidating than the balance sheet. But here’s the truth: a balance sheet is simply a snapshot of what your business owns, what it owes, and what’s actually yours at a specific point in time. The Balance Sheet in One Line Every balance sheet is built on one simple equation: Assets = Liabilities + Equity Assets are what the business owns Liabilities are what the business owes Equity is what belongs to the owner(s) If this equation balances, the balance sheet makes sense. A Simple Exa...
Note: This post is for beginners, so you can skip this and read other posts if you are proficient in social media data analysis.
What is Analytics or Data Analysis?
Useful information is called data. It can be in multiple forms, such as descriptive or numerical. For example, the number of people who have visited your site or liked your post. In Pakistan, Analytics is underrated and not fully utilized compared to other digital marketing branches. The emphasis is on promotion and interaction. Digital marketers and page owners neglect the data and numbers and what story these facts and figures depict. The situation is not very different in other countries where SME businesses don't concentrate on data analysis. So let me educate you based on the matrices you should be looking at and how you can deduce inferences from them and improve your content strategy.
The number of visitors: This is the most basic metric you would encounter on FB, IG, Twitter, or other platforms. The inferences you can make from this metric are: how many people are coming to your page? Do they come on a particular day or time? Are they increasing or decreasing? From these questions, you can infer that you are doing a good job if people regularly come to your page. If the number is decreasing, then you should improve your content.
When do they visit your page?
It is also another useful metric that can tell you when visitors see your posts. Is there a trend that they visit your page, for example, on a particular day of the week or a particular time of day? For example, I used to work at a university. Our primary audience was university students. They would like posts in the afternoon when they had a lunch break or in the evening when they reach their homes, i.e., 7-9 PM. You can also see if your audience is available at a particular time and then schedule your posts at that time slot.
Who is your audience?
The demographic factors, such as gender, age, location, country, profession, roles, etc., tell you about your specific audience. For example, if you see those female users are the majority of visitors, you should post relevant content of interest to them. Female and male social media celebrities fail to recognize this insight. The female/male celebrities keep posting content relevant to the female/male audience and neglect others. This way, they lose a significant audience's attention.
What is the audience looking for?
Facebook provides insights on post engagement. Similarly, other platforms also tell what posts performed well. If you see that a particular post, such as a video, animation, image, text, or memes, is getting attention, you should be doing that more.
These are some of the most important insights you should be looking for. Once you get comfortable with them, you should search for more metrics and infer results from them.
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