4 Reasons Why Startups Should Take Advantage of Business Intelligence
Since starting my customer discovery, I have noticed that a lot of startups do not track their metrics. I don’t just mean the metrics that VenturX focuses on (Product Market Fit, Real-time Runway, Conversion, and Engagement); I mean most startups do not look at any metrics on a weekly basis. At first, I thought it was because some people may be less analytical types than others. But one day, a startup finally told me the answer.
“I don’t have enough data to track! [It is not reflective of my business.]” — Local Montreal Startup
What do we mean by data?
Data is a collection of facts and quantities used for analysis. In this case, we mean tracking your customer interviews and meetings, revenues and expenses, industry metrics, how many customers signed up this week, how many customers are retained, etc.. All data is good data as long as it is tracked accurately and updated regularly. Business intelligence is the process of analyzing data to make business decisions.
1. I don’t have enough data to input!
Quality over quantity. Keep in mind that 2 early adopters who love your product is far better than 100 surveyed people who are only so-so about it. Those 2 that really felt the problem your startup is trying to solve should definitely be tracked.
What to do next: Investors want to see how much you have evolved over time. Tracking early is the only way to show improvement!
2. I am too busy to input my data
Time is Money! If you don’t start tracking from the very beginning, you might end up losing running into dead ends without even knowing it!
What to do next: Spend 10 mins/day to track your data with VenturX and save yourself months of pursuing the wrong path. Almost all startups who ignore data tracking don’t see how much time is wasted. It is just a way for founders to be very conscious of where they invest their time and money.
3. I won’t want investors to see my metrics
Investors do want to see that startups are using business tools to monitor their customers, finances, teams, and project. Not only do you need to have intimate knowledge about how well your startups is doing but you also have to be able to prove it. There is nothing better than seeing a visual of how your business is doing. Investors are keen on data driven results and decisions which is a great habit to form for all startups. Don’t worry if your progress at that stage looks bad, the improvement is the most important part. If you only track when you are rising, it doesn’t look like you improved by very much. You need to show how much you have learned.
“It is not about how much you fall, it is about how quickly you get back up.” — Barbara Cocoran
What to do next: Sign up today www.venturx.ca to get into the good graces of VenturX’s list of investors.
4. It is not reflective of my business
Business intelligence focuses on the business as a whole, not just one particular part. The business includes customers and users, finance, product,etc.. Some founders are technical product managers while others have team management skills. All founders need to be focused on the overall well being of the business, not just the parts they are comfortable with. This is a big reason why some founders feel discomfort when seeing that their metrics are low regarding some parts of their business. The good news is that modern business tools also come with hints on how to improve on weaker parts of the business!
What to do next: Make sure to use a credible and well-rounded tool like VenturX to get the most benefit!
The bottom line is why wouldn’t startups want to use every resource in their toolbox including tracking their data to make smart decisions? Corporations have been using business intelligence with all their C-level executives forever so wouldn’t startups want to model after those best practices?
VenturX is a startup success tracker that focuses on early stage startups who want an operational view of their Product Market Fit, Conversion, Real-Time Runway, and Engagement. Its unique SMART scoring mechanism will provide hints and daily SMS notifications when you reach danger zones in your scores to help you quickly improve. As an added value, you can also submit your metrics and application directly to Seed and Series A investors on the platform with just one click! For more info, go to www.venturx.ca
Why Venturx? In comparison to corporate business tools that are not customized for startups, this is is only a fraction of the price. So this is a very affordable tool with credible value, real time metrics, and even connect to investors who favour analytics and metrics at the startup stage.