What is Data ?

At one point or another we've all come across the term " data". We hear, read data-this & data-that all the time, but what really is it, what is data?

In its simplest form, Data refers to facts and statistics collected together for reference or analysis . (en.oxforddictionaries.com)

Any piece of fact or statistic; so to a Startup this can be:
Client Contact Details , Product Details, List of Products Sold , Leads, Conversions , etc. It's all data, any piece of detail that can give (has the potential to give) you information .

The challenge however for most Startups is obtaining valuable information from this Data. In the words of Jim Bergeson "Data will talk to you if you are willing to listen ."

Data can only be turned to information if effectively Collected, Stored, Tracked and Managed.

1) Collect Data:
The first step is to collect the data, so for instance for every inquiry ( lead ) you collect their Name, Phone Number, Method of Referral, Location, Age Range and other demographic - this can be termed Leads Data .

Startups should collect as much Data as possible (without bugging the client of course), collect everything. The more the data, the better the inference.


2) Store Data:
Next we store the data, no point writing it down on a random piece of paper to be thrown away. It's important to store the Data either physically (using the example above, you can get an exercise book to log all inquiries) or electronically (using a Spreadsheet or other Application).

So you need to have a repository, a database where all uniform data is stored. This serves as a point of reference when you need to, for instance, call a client, or as raw data for analysis (to be discussed below).


3) Track Data:
Then we track this data. The value of Data lies in its utilization; collected Data needs to be analyzed to be of any Business Value .
This is the step most Startups neglect, the process of extracting information, valuable information, from the collected data .

So still using the example above, we can track the Leads Data over time, aggregate to obtain:

The Average Age Bracket for all inquiries , Top Inquiry Location, Top Inquired Product , % of Leads being converted on a monthly basis, % of Male / Female inquiries , the list is endless.

We have the ability to draw as much information as our data can give.

This is very crucial as Startups can, using the information extracted, measure Business Activities & take informed Business Actions / Decisions.

For instance knowing my Leads fall between 20 - 25 years of age, i can define my Marketing & Advertising Strategies with a focus on Universities as opposed to Companies. In the same way, identifying my Top Selling Product can direct my focus & marketing energy to a particular Product Line.


Basically the idea is to obtain Information from Raw Business Data & apply it to Business Planning.

Analyzing this Data to obtain various Metrics can be done manually or electronically which generally is more effective.


4) Manage Data:
The last step is Management, Data Management.
Over time, performing Step 2 & 3 (Storing & Tracking Data) can be a nightmare if data is Stored & Tracked manually.

As your Data grows, the need for an automated system become glaring as manual tasks take time & are highly inefficient .

Having to flip through multiple pages just to obtain a Client's Contact or spending hours with a calculator just to obtain Total Sales Revenue is not only time consuming, but highly unproductive. A task that should take a single button click, takes an entire day, robbing you of productive business hours .

Above we've established the following:
First we Collect Raw Data | then Store | Track | and lastly Manage .

Step 4 is basically the process of integrating steps 1 - 3. Creating a faster albeit easier way to Collect, Store and Track data.

So rather than having a Spreadsheet for all Leads (potential clients), and another independent Spreadsheet for all Conversions ( actual clients), you have a single Database (made up of multiple Spreadsheets) all interconnected, enabling you easily analyze the data from a single point.

The benefits of having an Electronic Database cannot be overemphasized, I'll write a post soon focusing entirely on that.

Most Startups however can't afford (and often do not require) complex Systems, having a professionally designed Microsoft Excel Spreadsheet often suffices.

This Spreadsheet, at a minimum, should track the following Metrics:

- Business Expenses By Category
- Monthly Product / Service Sales | Revenue
- Top / Bottom Selling Product/Service
- Month - Month (MoM) Growth Rate

Making Informed Business Decisions is crucial to the survival of any Startup. Collecting & Tracking the right kind of Data helps provide the necessary insight to make such decisions .

As put by Arthur C. Nielsen "The price of light is less than the cost of darkness."

Data can help provide the light; as good decisions are drawn from good data. Learn to Collect, Store, Track & Manage Your Data Today!

Source:
http://www.designvat.com/FAQ/Understanding-Data-For-Startups.html

Better info

Truly insightful read.
We are now in the world of data.

This is good. I wish to gain from it.

Bonethugss:
Truly insightful read.
We are now in the world of data.

Very true. Data is the new oil.

designVATExcel:


Very true. Data is the new oil.

Honestly I plan to enroll for an online data analytics course.
Btw do you sell spreadsheets?

If you’ve just started thinking about your success metrics and don’t know yet which are really important in your case, you should begin by researching metrics other companies in your industry use. This article: https://eze.tech/blog/8-startup-metrics-you-should-care-about-first/ will help you to understand what matter most.