Why data plays an important role in startup success?

According to data, 20 per cent of startups fail in their first year, and only 50 per cent survive through their fifth year.

·        Data Work as a sixth sense for prospecting sales

·        Evaluate where your company stands compared to competitors

·        Data helps you make better decisions

·        Data helps you to  understand markets and customers

Startup businesses are a risky proposition. In order to stay competitive in the dynamic business world, Sustained growth is the only way to ensure the survival of your startup. This means that if things aren’t done in the most effective way possible, businesses will never make it past the first year.

One of the common mistakes owners make, while crafting a business plan, is skip over big data. But the use of big data can be very influential to the success of the company, as it offers a lot of opportunities and challenges to the businesses and can be very influential to the success of the company.

Big data can give numbers backed by bits of knowledge on consumer behaviour and can play a critical role in helping new businesses in regions like marketing, advertising, operations, inventory management, customer service, etc.

Big data and its influence on startups

Big data can help new businesses in recognizing and reaching out to the correct target market for launching product(s) and giving better profit for marketing investments. Additionally, it can also help in understanding the client's needs and utilizing their requirements for structuring or updating offerings.

Why data is important for startups..?

1- Base for target marketing

Due to a limited budget for marketing, startups need to have an unconventional wisdom of marketing to achieve a high consumer conversion rate. Advertising and marketing without data-based insight are similar to attempting to hit an objective in an unfamiliar dark room with only 2 to 3 bullets in your gun.

While Big Data science is evolving and is not fully precise, but it provides you with the direction in which to shoot so that your probability of hitting the target is maximum. So with the staggering help of big data, one can without much of a stretch adjust to the market conditions and accomplish a higher return on investment with increased sales.

2-Help in Tracking Potential Customers

Developing a customer base is essential for any kind of business success. In order to achieve success in the business world, it is essential to completely understand the market and customers. Being able to predict, fulfil and surpass the customer’s expectations, this is exactly the thing that helps startups succeed and scale.

Big data analytics is one of the strongest tools available to help manage a growing market share. Definite data and bits of knowledge help create personalized consumer engagement strategies. Such methods can be helpful in finding the areas for growth and product improvement, indicate trends and buying habits of the customers or detect the currently underserved market niches.

3-Data help to know your competitors

Your competitors offer their products and services and highlight their features, their customers leave feedback and highlight the flaws, there are discussions and suggestions on various forums and online networking with respect to the direction such products and services should evolve.

Analyzing this goldmine of data will help you identify the room for improvement, underserved niches and various trends, avoid the mistakes of your competitors and provide exactly the features and services with the target audience wants.

4-Increase Productivity

Most startups carry out their businesses with a limited budget and are very eager to earn maximum value out of it. Data allow users to run the ‘Experiment-Fail-Learn-Repeat’ cycle pretty economically

It does not just help new businesses in reducing their marketing or advertising expenses, yet in addition, gives an additional enterprise-grade experiences like anywhere accessibility and unlimited adaptability supported by the highly reliable infrastructure.

This makes organizations more agile and enables them to understand and react to the changing market requirements more dynamically.

Summary

In the quest for growth, it is important to know the possibilities and go after very small tangible benefits. Startups can execute different big data solutions over various areas.  It can be beneficial when challenges are clearly defined and applied to different tasks.

A full set of data also provides integration of the startup into the purchasing company and it can help sway the interests of the potential buyers because it provides the necessary data around the business’s success.

So Looking at the numbers can help greatly mitigate against business risks, and ensure it will provide some ROI and not bring down the company.

About Prakash Bhosale:- 

Prof. Prakash Bhosale is the entrepreneurship consultant for startups. He is a serial IT, Media entrepreneur  & leading business consultant He has Over 15 years of experience in education, corporate, IT, e-Marketing, Consulting domain. He is a columnist on business & entrepreneurship with newspaper, magazines, portals, published over  1100 articles. He is the writer of the 4 books on business, entrepreneurship, business ideas. He also guides   PhD fellows, business plans, DPR preparation.

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