Data Analytics: 3 steps to kick off your startup’s data-driven journey, with or without a data team

When business data is properly collected, transformed, and applied, any company can achieve ROI, regardless of its stage or size.

With modern technology, you no longer need a team of 5 to 10 data specialists to get there. Here’s how to start the data-driven journey in your startup, with or without an internal data team.

1 - Define your goals and objectives. What do you want to achieve that you can’t without data?

What are you doing now that data will help you improve? In 3 months, 6 months, and 1 year, what results do you want to see from your data maturity?

This is essential because it provides a roadmap for building your data strategy. By knowing which decisions you want data to inform before investing in it, you can create a data strategy that serves your goals—not the other way around. To start, think about your company’s overall goals, independent of data.

Write them down in a list. Then, consider how data can be used to inform and achieve each of those goals. Write that down as well, and you’ll have a clearer view of what data can and should do for your business.

2 - Set up a "Modern Data Stack"

A Modern Data Stack is the set of systems you use to collect, transform, and activate your data. It is divided into 3 main parts:

1. ELT (Extract, Load, and Transform) pipelines extract data from your production database and the various SaaS applications your team uses. This is how you centralize your data in your data warehouse.

2. The data warehouse is where all your data is stored, cleaned, and centralized. It keeps everything organized, structured, and secure. It is your single source of truth.

3. Reverse ETL pipelines send your transformed data back to the applications, software, and systems your team uses, operationalizing data in everyday workflows and democratizing access to this information.

In the past, having a modern data stack meant having a custom data architecture built by a team of data engineers. These setups consisted of several niche tools interconnected by pipelines, developed over months or even years, and requiring significant time and resources to maintain.

But now, there are options to build or buy a _modern data stack_, and you no longer need an internal data team to build or maintain your framework. For startups and SMBs, companies with end-to-end solutions like Erathos are a much faster and simpler way to launch data operations.

With ELT and data modeling capabilities built by data engineering specialists, you can get your modern data stack up and running in a matter of hours. Plus, having an interface designed for non-technical users means company data can be accessed across the organization, without requiring an internal data team.

To learn more about how Erathos can help you achieve data maturity in your startup, book a conversation with one of our data specialists.

3 - Establish data governance

One of the most important parts of investing in data analytics is ensuring you have the right systems to keep your data accurate, reliable, secure, and accessible. A proper data stack lays the foundation for this, but beyond that, it is important to establish ownership and accountability when it comes to your business data. Having a data team or hiring a data analyst is one way to do this.

If you have a data specialist or a team of specialists, they can take charge of your data analytics operations, being responsible for the ongoing maintenance and management of your data and how it is used.  

But with a complete modern data stack built for non-technical users, you can also develop this governance internally with your teams, without a dedicated data department.

By establishing clear KPI definitions and responsibilities, each stakeholder or team knows exactly how to measure success for what they are accountable for. The time when data analytics was reserved for large companies and corporations is over.

With today’s modern technology, early-stage startups can use data and gain benefits, driving innovation and staying ahead of the competition.