Start-Ups Should Invest In Analytic Support Early
Three Simple Steps That Will Increase Funding & Learning
I support and advise a fair number of start-ups. Typically, they come to me with doubts. I get a lot of referral business — which is a good thing because too many start-ups believe they are too early in the process to think about analytics. They couldn’t be more wrong. More here.
First, it is never too early to plan for success. This works both inwardly and outwardly. An analytic plan or two will help you cash in on the power of analytics — learning. Secondly, it will convince potential investors that you have the maturity and discipline, not only to succeed but to monetize that success.
Step 1 — A Simple Map
It begins with a simple map of your business. At Corsair’s, we call this your business storyboard. It is a framework that lays out your business model, your decision-making priorities, and ultimately outlines a data collection strategy. For an expert, this is rarely more than a three-hour exercise. I have walked some startups through in a little over an hour. More here.
This is a far harder sell than it should be. And yet, every client who does it — raves endlessly about the value they received. That feedback comes from businesses of all sizes. The learning you will get as an organization from this simple mapping exercise can change the entire dynamic of how you prioritize and plan. It also pre-loads you for a lot of tough questions that you will encounter if you are actively selling clients or pitching investors. More here.
Step 2 — A Simple Blueprint
I am sure you have a technology plan… smirk. Actually, I rather doubt you do. Indirectly, you are likely acting on one. But if you want to position yourself for success, you should have a blueprint for where your technology will be in the near future.
Every investor wants to know where their money will go. This is a compelling piece of the answer. Every external vendor will try to persuade you that their technology is critical — this is the lie detector. Every technology investment you make without a blueprint like this — will cost you double. Not a bad return on a few days worth of work.
Step 3 — A Strategy To Bank On
Data monetization might be the most misunderstood concept in analytics today. News flash — no one is selling data anymore!
That said, your data is valuable. In fact, today, your data may be more valuable than anything else your business does. But you need to develop a strategy/framework that helps you consider how you will monetize it. As a start-up, the answer is probably a year or two away, but the strategy to get there needs to be present today.
I have been in many a boardroom when clients announce — and here is my data monetization strategy. Eyes light up. Checkbooks loosen. It is a veritable data swoon. Why would you leave that out of an investor pitch? Why would you risk finding yourself on the outside looking in, when a few years have gone by. You will eventually need a data monetization strategy. No matter when you build it, you will be 18 months or more away from executing on it. Do it now! More here.
But wait there’s more…
This article was organized around the functional mapping/planning that you will want to do. The reality is that many secondary benefits are baked into the outcomes. Any organization that takes these three steps will also find themselves with:
So why do so many start-ups put this off for so long? Sadly, it is a matter of education. Entrepreneurs are always learning — but they are focus on the focus of their business. This keeps them so busy that many entrepreneurs fail to visit the doctor or look after their own health. Is it any wonder that they also fail to consider the health of their business.
Point is, you can’t do this yourself. It will take too long. But a solid expert/adviser can make this happen quickly and affordably. Better still, it pays back quickly (and on the long-term). Having these plans in place will save you time and money. They are also likely to greatly increase your odds of getting funded AND the amount of funding you are offered. VC like a great plan.
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