Are Graphs The Most Underrated Business Tool?
by Arina Smith Business 06 September 2021
Graphs are one of the most useful tools you can utilize for your business. Not only will it help you disseminate data faster, but it’ll also do it in a way that is more detailed compared to other methods. Done correctly and it will surely benefit you and your business.
Fortunately, there are many graph makers available online today. Graphing tools like Venngage can definitely make a huge difference. They provide great value in the business world: if you know how to use them to their full potential. In this article, we take a deeper look into their benefits.
What does a graphing tool exactly do?
Graphs are known to enhance the scope of your evaluation. Since they present data visually, cognitive reasoning can be improved. Data visualization is an effective tool that will help you assess your business’ performance better. In business management, you will need graphical analysis to show crucial information. Moreover, you can track your market targets better with the help of these visual aids.
Graphs can show relationships among your variables. In the business world, relationships may involve sales and marketing figures, profit and loss information, and the likes. They can also display one set of variables simultaneously against another variable. These visual representations can show trends in your business that may not be as obvious when presented in a tabular form. Moreover, their creative visuals can also make your business presentation seem more prepared and thus more impactful.
What are the most popular types of graphs?
There are several types of graphs for you to choose from, depending on your needs. They present different data types in varying manners.
Line Graphs
They are known as the simplest types of graphs. They present data in a very straightforward manner, and so they are easy to understand. Minimalist presentations go well with this type of graph since they consist only of lines.
Bar Graphs
If you need to present a single data series, bar or column graphs are the best option for you. Since bars are heavier compared to lines, they can give better emphasis on your point. Make sure to refrain from distracting colors that would affect your overall presentation.
Scatter Graph
Scatter plots are great for determining the correlation between two data series. You may use this if you want to draw the best fit line when doing regression analysis.
Pie Graphs
Pie charts can be hard to read at times. But, with the best graphics, you can make these palatable for your audience. Use pie charts when illustrating the percentage breakdown for a limited number of data points.
Histogram
If you have not heard of histograms before, these graphs show the dataset distribution. They effectively illustrate the percentage of different categories. With histograms, you can see which of your data categories are the most populated.
How are graphs useful in business?
When used correctly, graphs can be one of the most functional business tools. These graphical representations can help you grow your business by assisting you in visualizing the data at hand. Here are the ways that graphs can help you improve your business.
Graphs will help you know which of your products are properly marketed.
Graphs allow you to analyze the individual sales value of your company over the years. If there is a steady climb in your sales, this will be evident in your graph. Thus, you can conclude that your business is on the rise. From then, you can pinpoint your effective strategies and decide which to maintain.
However, your business graph may indicate otherwise and show a decline. This gives you a warning that will urge you to check on business aspects that need improvement. This forecast will provide a headstart that will help you prevent undesirable trends from actually happening.
It can help you compare your businesses with your competitors.
If you would read and study the annual reports of other companies, you would see that they use several graphs. Thus, this would help you compare yourself to other businesses! A single business graph from their report can tell a whole story, and so you can potentially know where your company stands. With that, you can set ambitious yet realistic targets for the future.
Start making free graphs for business plans today!
Graphs might be underrated to some—but they do not have to remain so. When properly used, they can elevate your business and make a significant impact on your growth. Ditch the tabular form and start presenting your data visually—watch your team make better sense of the data at hand.
If you want to create visually appealing graphs but do not know where to start, do not fret. There are numerous websites available online that provide beginner-friendly templates. One of them is Venngage, which has a custom graph maker for you to try for free. You can choose one of their pre-designed templates and edit your diagram in minutes!
For now, gather all your data. Then, think of the type that would present these data best. If you used to stay away from graphs, now is the best time to change that.
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