Building a Strong Foundation
In the fast-paced world of startups, every decision can be a make-or-break moment. But how do you ensure you’re actually going in the right direction? The answer lies in data-driven decision making (woooah).
Imagine navigating a dark forest with just half a map. Spreadsheets and siloed data sources (like separate systems for marketing and sales) are like that – they offer limited visibility and can lead you astray.
This is where a data warehouse comes in – it acts as your compass and map, guiding you towards success.
Let me introduce our data consistency enemies (soon to be allies).
enemy 1: good old spreadsheets
Spreadsheets were once the go-to for data analysis. To be honest, they still are for a variety of use cases.
But when you start having more complex needs (or just growing data volumes) they become a pain. I would say these are the 3 main reasons:
- Inaccessible: Data becomes siloed across different spreadsheets – collaboration might still function in some degree, but when the V2, V3, V3_final start showing, everyone starts panicking
- Limited Functionality: Spreadsheets can’t handle large datasets or complex calculations efficiently. They just freeze.
- Non consistent: When you have two spreadsheets giving two different values for your ARR, who’s right?
enemy 2: siloed platforms
Also, outside spreadsheets, similar challenges arise with siloed data sources. Each department might have its own system, but these systems often don’t communicate with each other. This fragmented view messes with your ability to see the bigger picture and identify key trends.
And, what you’ll end up doing: export as a .csv and do a quick analysis outside.
If only there was a way to have all that data flowing somewhere…
Introducing: the data warehouse
A data warehouse acts as a central repository for all your company’s data, regardless of its source (e.g. marketing tools, customer relationship management systems, customer success platforms). Imagine it as a giant, organized filing cabinet that stores all your information in a structured way. Advantages for startups:
- Single Source of Truth: Eliminates discrepancies and ensures everyone is working with the same accurate data.
- Accessibility: Provides easy access to data for various teams, fostering collaboration.
- Scalability: Can accommodate your growing data needs as your startup scales (some services even do this scaling automatically).
- Improved Decision Making: Provides a holistic view of your business, allowing you to identify patterns, track trends, and make data-driven decisions with confidence.
Building a data warehouse might seem daunting, but it’s an investment that pays off in the long run.
How can I start?
In our next blog post, we’ll delve deeper into the exciting world of data stacks.
If you want to keep your focus on your own product development, you’re on the right path! And that’s were we come in: we’ll implement a full data stack on your startup, and help you enhance your business understanding through this new Single Source of Truth 🎉
