How Numbers Tell Stories in Business
“Numbers have an important story to tell. They rely on you to give them a voice.”
72% of business owners admit the amount of data in their business is stopping them from making important decisions. But what if we could make this amount of data more digestible? Well, we can.
Storytelling can help us put numbers into perspective. They help us build the narrative of how we can get from point A to point B. And more importantly, they help us convince other people of this. But how do you tell a story with numbers? Let’s dive in.
Why Data Storytelling Is Important in Business
Thanks to the internet, almost anyone has the opportunity to reach audiences worldwide. This means that storytelling has become more important than ever before. Steve Jobs said it best: "The most powerful person is the one who tells the best stories."
This is true for accountants and finance people, too – they're not just crunching numbers anymore. They're using data to tell stories that help businesses grow. Using stories, you can show how different customers are affected by their revenue and profits. And by telling these stories, you can convince people to take action and make changes.
When there’s a problem in the data, look for the story behind the numbers. This way, you can make smarter decisions and increase profits. “What does this mean and what should we do about it?”
Data storytelling isn't just about explaining numbers. It's about persuading people, making things clear, and inspiring action. Being good at data storytelling can give you a substantial edge. It helps you communicate better, make smarter decisions, and drive your business forward.
How to Tell a Story with Numbers
Okay, so telling stories with numbers is important. But how do you do it? Let’s take a look at some common practices.
Set Up a Structure
Setting up a solid structure is crucial – it’s something to fall back on. Simply throwing charts into a presentation or report isn't enough to engage your audience or convey meaningful insights. True data storytelling involves more than just displaying data – it requires a narrative structure that shows insights with relevant context and supporting details.
To set up an effective structure, it's essential to understand the key elements of a good story. Every story has a beginning, a middle, and an end. In accounting, where data often revolves around fiscal timelines and deadlines, these natural points serve as anchor points for your narrative. Fiscal deadlines may seem arbitrary, but they provide a framework for decision-making. The story unfolds between these points, guiding a company or client from one stage to another.
Look at the Bigger Picture
Keeping the bigger picture in mind at all times is really important. While the data might provide valuable insights, it's essential to keep the overarching goal in mind. Ultimately, the bigger goal is what matters most, and every piece of data should contribute to reaching that goal.
By focusing on the bigger picture, you can ensure that your data story is meaningful and relevant. Take a look at your end goal, assess where you are now – your story is how you get from point A to point B. Rather than getting lost in the details, strive to understand how each piece of the story fits into the larger story and leads toward the ultimate objective.
Consider how each data point contributes to the overarching goal and what it means for the bigger picture. This helps ensure that your storytelling remains focused and impactful, guiding your audience toward the desired outcome.
Use Visuals
“A picture is worth a thousand words.” That’s a cliche saying, but for a reason – it’s true. Visualizing data is important for businesses because it helps make sense of big piles of information. When you're showing data, you need to find a balance between telling a story and using visuals. If you focus too much on one and forget the other, your message might not come across as well.
Visuals unlock important insights that might be hidden in all that data and make them easy for everyone to understand. When you look at data visually, you can spot patterns and relationships that you wouldn't notice otherwise. This can lead to new ideas and help businesses focus on what matters most.
Good data visualization tells a clear story in a way that's easy for everyone to get. It's not just about making things look nice – it's about making sure the message comes across loud and clear. And when visuals are attractive and user-friendly, they even grab people's attention and keep them engaged.
Key Takeaways
Let’s recap:
Data storytelling is important in business because it convinces people and drives action.
Structured storytelling with a clear beginning, middle, and end helps make decisions effectively.
Always focus on the big goal to make sure every data point matters.
Visualizing data helps everyone understand complex information easily.
Good visuals not only make data clear but also keep people interested.
With this information in mind, you know how to tell stories with data, and how that gets you from where you are to your main goal.
