Why Data Analysts Can’t Become Startup Founders
Whenever I talk to data analysts, I notice a recurring theme — they’re excited about the idea of startups but convinced they couldn’t possibly do it themselves.
The enthusiasm is there, but so is the doubt. They think they lack the big idea, the coding skills, or the business knowledge required to build a successful startup.
But are these doubts really justified? Let’s dig into the common reasons data analysts have given me for why they’re not going to become founders, and whether those concerns should hold them back.
No Good Ideas
Data analysts often say “I don’t have any good ideas.” It’s easy to look at successful startups and think their founders had genius insight that sparked their ventures. But in reality, great startup ideas often emerge from deep familiarity with specific problems — something data analysts are exposed to every day.
Four Idea Generation Patterns for Data Analysts
- Productize your most impactful and repeated analysis work
You’re likely performing certain analyses repeatedly because they drive significant value. For example, maybe you’ve built a model that predicts optimal email send frequency, balancing engagement with unsubscribes. What if you could package that model into a service that other companies could use? Which industry would most benefit from that model? - Productizing your most successful A/B test
Imagine you’ve run a series of onboarding experiments that significantly improve user retention. This could be the foundation for a personalized onboarding service that adapts to real-time user behaviour, helping other companies replicate your success. - How will AI change analytics work
The explosion of AI in analytics is creating opportunities for early adopters. As a data analyst, you’re witnessing firsthand how AI is transforming workflows. By identifying gaps or inefficiencies in current AI tools, you could develop new products that help businesses leverage AI more effectively. - Check your team’s software budget
You’re always dealing with real problems at work. Just look at your team’s software budget — there’s probably a tool everyone dislikes but still uses because there’s no better choice. That frustration is actually a great source for startup ideas. If you can build something better, you’re not just helping your team — you could be solving the same problem for many other people too.
Can’t Code Well Enough
Another roadblock is the belief that not being a strong coder disqualifies you from starting a tech company. But this concern often stems from a misunderstanding of what’s actually required.
Backend Engineering as Data Modeling
Backend engineering is fundamentally about data modelling, something you’re already skilled at. You’re used to handling complex datasets and structuring them meaningfully. Translating these skills to backend development is more straightforward than you might think. The databases, queries, and logic you deal with daily are the very same building blocks of backend systems.
Front-End in Plain English
As for the front-end, modern tools make building typical interfaces accessible even for non-coders. With the rise of low-code and no-code platforms, creating functional prototypes and MVPs has never been easier. And the advance of coding copilots means that coding is increasingly done in plain English.
Business Knowledge, Network, and Marketing
A big fear is often the lack of business acumen, network, or marketing experience. However, I believe data analysts can easily apply their own strengths to these disciplines.
Bring Your Data Mindset
You’re already skilled in making data-driven decisions — apply that same mindset to the business aspects of your startup. For example, treat your marketing strategies like you would an experiment. Test different channels, measure the results, and iterate. This approach not only plays to your strengths but also reduces the risk associated with marketing efforts.
Find Channels That Suit You
There’s no one-size-fits-all approach to building a business network or marketing your product. If you enjoy writing, consider content marketing; if you’re more outgoing, networking events could be your thing. Even optimizing paid ads can be approached with the same analytical rigor you apply to data analysis. The key is to find channels that align with your natural tendencies and strengths.
Join a Mastermind
You don’t have to figure it all out alone. Joining a mastermind group can provide you with the support and guidance of others who are on a similar journey. These groups are invaluable for sharing knowledge, testing ideas, and gaining the confidence to push forward.
Startups Are Hard, Expensive, and Risky
This is the objection I find most credible. Startups are challenging, they require significant time, and they come with no guarantee of success. So I won’t dispute these are real considerations. But let me give you the other side of the story.
The Real Barriers
The real obstacles are often psychological rather than practical. Yes, the risk of failure is real, and the financial cost can be high. But consider the potential long-term risk to your mental health of not pursuing your entrepreneurial dreams. The regret of never trying could be more damaging than the challenges of launching a startup.
Money Concerns
One way to mitigate the financial risk is by consulting on the side. As a data analyst, you have valuable skills that are in high demand. Consulting can provide a steady income stream while you work on your startup, easing the financial pressure and giving you more runway.
The Hours Feel Different
While the hours required to build a startup are undoubtedly long, they often feel different than hours spent working for someone else. When you’re working on your own project, driven by your own vision, the work can feel more fulfilling and energizing. It’s not just about the destination but the journey itself.
Unparallel Learning
Starting a company is an experience that few get to have. Even if it’s just once, putting it on your bucket list can provide a powerful motivator. And if you do it, you’ll find that the journey it takes you on teaches you hard and soft skills at a pace quicker than you have ever experienced before.
Start Small
You don’t have to quit your job today to give this a go. Take that side project you’ve been thinking about, and push yourself to get it live. Try to drive a little traffic to it. And feel the buzz when you get your first customers.
Think Again
I hope this article might inspire somebody to re-think whether founding a startup might be for them. If you want to talk it through in more detail, feel free to connect with me on LinkedIn.
