Statistical factor analysis breaks down the number of variables for a given problem and reduces them to a few factors for modeling purposes. These models then use statistical factor research analysis to determine the best possible course of action for your business, based on the variables. These variables can be any macro or microeconomic issues, which affect how your business operates.

Whenever a concept like statistical factor analysis comes up, most people's eyes glaze over because of the complicated nature of the verbiage. However, this powerful tool can help your business grow by using statistics to help predict the future of your business or the industry in which you operate. If you want to employ factor analysis in business, there are few items to consider before fully committing resources for these services:

1. Understand the basics of statistical factor research analysis.

2. Evaluate the purchase of statistical factor analysis software for your business.

3. Consult a statistical factoring professional.

Action Steps
The best contacts and resources to help you get it done

Learn the essentials of statistical factor analysis

Statistical factor research analysis is not something that a person can fully understand in a short period of time. However, you can get an idea of how factor analysis for business problems work. After all, you would not want to invest time and resources in something that was a total mystery to you or your staff.

I recommend: View the statistical factor analysis webinars available at the Association for Institutional Research website. Take the online SPSS tutorial, which explains the statistical factor analysis software and its uses.

Examine the software options for business factor analysis

Your company may have the expertise and the know-how to conduct statistical factor analysis, but lack the software to complete the task. In this case, there are a few software options available to your business.

I recommend: Contact the SSPS sales department for a quote on their business factor analysis software. Download and try the 30-day free trial from StatistiXL before you decide to purchase the factor analysis reporting software.

Engage the services of a statistical factor analysis professional

If your business doesn't have the knowledge base or expertise on staff to conduct a competent factor analysis, employing the services of a consultant may be your best option.

I recommend: Contact one of the statistical factor analysis professionals available at the Alliance of Statistical Consultants. Get in touch with the statistical consultants at Minimax for a price quote on your factor analysis needs.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Be sure to conduct a thorough price analysis of all of the available statistical factor analysis options before you commit to a particular option. If the price is more than the cost savings of the factor analysis, then it would not be a cost-effective solution.