Are you looking to build a successful startup from scratch? Well, you’ve got to look for ways to set yourself apart in a competitive landscape. And also something that can help you with smarter decisions. The solution- you can launch a data-driven business!
Surveys suggest that 91% of companies believe that data-driven decision-making drives growth. It means you can get an early advantage by embracing the mindset, right? Besides gaining a competitive advantage, you can increase profits and lower costs with the approach. But what’s the secret to embracing data for your new venture?
You’ll probably worry about the cost and complexity of the process, but we’ve got some tips to help you overcome your qualms. Here you go!
Collect information that matters
Data can be a lot of numbers, from customer demographics to employee information, market insights, and more. In fact, too much information can burden a startup running on shoestring budgets and minimal resources.
Why not stick with only the numbers that are actually valuable to your business? Figure out what metrics are important and focus only on them. For example, an e-commerce startup can stick with metrics such as conversion rates, customer lifetime value, and customer acquisition costs.
The approach can save you loads of time and cut the complexity of going data-driven for your young startup.
Create a viable process
Well, gathering relevant information is a good start. But where do you go from there? Of course, you’ve got to create a viable process. Begin with a Data Catalog that stores all information in a single repository.
It enables different departments and employees to access the information they require for their respective tasks. After implementing a repository, you need to choose reliable analytics tools to make sense of the numbers, identify trends, and make data-driven decisions.
You can even find free ones to save money for your startup. What else could you want? At this stage, you also need a data team to ensure data quality, integrity, security, and compliance.
Cultivate a robust culture
What’s in the startup culture? A lot! It creates a roadmap for the future and defines how an organization will work along its growth journey. If you want to build a data-driven culture within your startup, cultivate it from the outset.
It means everyone on your team is comfortable with the idea of using data and crunching numbers to make big and small decisions. Encourage employees to look at the data regularly and train them to interpret it.
Set up regular data review meetings to discuss your metrics and identify opportunities for strategic improvement.
Wrapping up
Data-driven organizations are the future, so embracing the approach is the best thing you can do for your business. While you may stress about the cost and time for the initiative, it’s hardly a burden even for startups with limited budgets and tight timelines. And the process is far less complex than you imagine. Just follow these three steps to unlock the full potential of your business. You’ve got this, boss!
