99: Finding Profitable Opportunities Using “Deliberate Data” with Dr. John Johnson

Mar 16, 2021

In this insightful discussion, Dr. John Johnson, founder of Edgeworth Economics and Edgeworth Analytics, shares his expertise on the critical role of data in business growth. He dives into common pitfalls in data interpretation, like the distinction between correlation and causation, and emphasizes the importance of questioning statistics. Johnson also recounts his entrepreneurial journey, illustrating how deliberate data strategies can lead to informed decisions and success. His book, 'Everydata,' reveals how to sift through the noise of information we encounter daily.

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INSIGHT

Question Data Correlation Claims

Data interpretation requires skepticism, especially with media claims that seem too good to be true.
Simple checks like questioning causation vs correlation reveal whether conclusions are reliable.

ADVICE

Develop Intuition for Data

When consuming data, pause and question the context, source, and possible agendas behind it.
Develop intuition for spotting red flags without needing advanced statistics knowledge.

ADVICE

Verify Data for Big Decisions

For big decisions, thoroughly verify the data source and context.
Limit deep verification to major issues due to limited bandwidth for constant scrutiny.

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Data can be a confusing topic for most people, but what about when it has to do with your business? How is your business using data? Are you even using data at all? Dr. John Johnson, expert witness, professor, and founder of Edgeworth Economics and Edgeworth Analytics argues for businesses using data to grow.

Dr. Johnson understands why so many people fall victim to studies and findings that may not be entirely accurate. He talks through confirmation bias and how we, as consumers, can find the red flags when listening to interpretations of data. We are urged to take time to think before we accept statistics and data as fact.

He also dives into how he started his own firms, Edgeworth Economics and Edgeworth Analytics, and how he himself uses data to track his firm’s growth, recruiting, and revenue. Often, his firm is hired to find why a product or group of products is or isn’t selling, which strategies make the most profitable sense, and how a business can change to ensure more sales. Aside from that, Dr. Johnson also acts as an expert witness in corporate lawsuits, sifting through the data to find out what is really true, and what has been inflated.

There’s no mistaking that data is important for modern businesses, but what’s more important is how you use and interpret this data to come up with accurate conclusions. His book, Everydata: The Misinformation Hidden in the Little Data You Consume Every Day goes into the data all around us, and how we can sift through it to find truth.

In This Episode We Cover

The expert witness and testimony field
Checking your own bias and making sure your decisions are based on accurate data
Understanding the context around the data that is being recorded
Tracking growth and recruiting so you know where you’re succeeding
Using common sense when looking at different data points
And So Much More!

Links from the Show

Check the full show notes here: http://biggerpockets.com/bizshow99

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