- Are you an entrepreneur looking to keep your startup afloat in the troubling economic times ushered in by the COVID-19 Pandemic?
- Have you ever looked at Data Management as a probable solution to change your start-up’s orientation and approach?
- Do you know how data can help you create a leaner, fitter and more streamlined organization in every vertical?
In the last few years, effective data management has emerged as one of the best approaches to doing business. While big businesses have already made the shift to reading and learning from data, now small businesses are looking to make the shift to data.
Businesses have been storing, analysing and processing data from time immemorial. However, the advent of sophisticated software means that the entire process has become much more user friendly.
In this article, we will look at how startups can use data management to not only sustain their businesses, but also grow during the COVID-19 Pandemic.
5 Ways Startups can use Data Management: The List
1. The right Data can help Startups improve their Decision-Making capabilities-
One of the cardinal problems, which every startup faces, is limited resources. This inhibits their decision-making capabilities, as they are slow to act. This in turn, limits their first mover’s advantage and hampers growth.
If startups have access to the right kind of data, they can decisions far quicker and spontaneously. Data like how many people are going to use the new product, geographical location; user spending, etc. are some data, which can help startups exponentially.
2. Effective Data Management can help reduce Costs and bring down wastages-
Startups need to realize that data management is like a roadmap for a business. This shows, which paths to avoid, and which ones to take. This has a huge impact when it comes to cutting down costs and frivolous expenditures on marketing, sales and advertising campaigns.
Data Management can also help in reducing unnecessary wastages, which are made through bad investments. By learning from data, cutting down costs and reducing wastages, startups can help their balance sheets in a major fashion.
3. Data helps in creating a Technology-First Approach for a Startup-
Every time your marketing head proposes a way forward, you can ask him to support his claims with data. This will help you create an organization and work force, which uses data to justify expenditures, streamline organization and improve revenues.
Bigger organization and investors (including VC firms) get impressed with startups who have a technology-first approach. This shows decisiveness, the use of technology and a vision for the future. As an entrepreneur, you are going to find common grounds on data.
4. Best use of Data Management helps in better coordination among Business Verticals-
Every aspect of your startup- social media, ecommerce, supply, logistics, marketing, sales, etc. needs to have a data driven approach. According to gartner mdm, all verticals in a business can use data management to streamline operations and improve performances.
This also means that if a startup is using data, it will automatically translate into better coordination and integration among the various teams. Everyone will be aware of what is it that they have to do, and what are some areas, which they have to avoid.
Read More: 6 Best Accounting Software for Startups
5. Using Data can help improve Revenue figures and enable Planning for the future-
Every business does what it does to improve their revenue figures. This show growth attracts the best talents and gains the attention of probable investors looking to invest or buy stakes. For a startup, data can help achieve all the above-mentioned things.
From planning (where the company will be in the next five years) to showing growth areas, to exposing problem areas, everything ultimately boils down to improving growth figures for the startup. Briefly, without data management, no startup can have a plan for the future.
The potential of using data is limitless. Data helps counter human beliefs (which are prone to error) and backs up strategy in the most full-proof manner. Startups should realize that data management is not an expensive proposition to invest. They should also understand that the ROIs from effective data management are always going to outweigh the investment costs handsomely.