Reading time: 6 minutes

As your startup grows, the amount of data you need to store and manage will increase over time. Therefore, your startup needs to know how to manage big data correctly to prevent data loss or damage. Without a data management strategy, your business may become overwhelmed, leading to chaos. This article will run through some ways in which you can manage and maintain your data.

Outline Business Goals in Data Management

Firstly, before you start managing big data and deciding which strategies you want to use, you should set your goals. Knowing what you want to do with the data and what data you need prevents the data management software from becoming overcrowded and disorganised. Thus, you should keep only the information you want to use to keep things manageable.

Your startup may have goals such as:

  • improving decision making;
  • increasing data protection;
  • using data warehousing to enable data mining;
  • ensuring many people can access data at once without software lagging;
  • creating or improving processes;
  • creating buyer profiles through customer data;
  • finding customer buying patterns; and
  • training employees on data use.

After outlining your goals, you can choose appropriate methods and a data management system to execute them. Your business can utilise many types of software, such as:

  • relational databases;
  • cloud services;
  • decision support systems; and
  • transactions processing systems.

Cloud Computing

To manage increased data flows, your startup can use cloud computing services. With cloud services, your company can store data on an offsite server that a vendor usually owns. This will enable you to have an automated backup strategy, professional support, and easy access to your data. In addition, with a cloud, you can manage your data with ease, and it will be easier for several people to access the data simultaneously. Your cloud can be as big or small as you require to ensure adequate data storage. 

To use a cloud service, you need first to have a plan. Your startup needs to plan who has access to the data and how much data you will move into the cloud. Next, you need to know whether you can use a public, private or hybrid cloud.

With a public cloud, all servers and storage are owned and managed by the cloud provider. In a private cloud, the cloud computing resources are used exclusively by your business and can be physically located at your startup. A hybrid cloud will mix private and public, and your data and applications can move between the two cloud types. 

You will also need to ensure that all data entries are accurate and do not duplicate pre-existing data. It is a good idea to back up the data yourself, even if the cloud provider is already backing it up.

NZ Startup Manual: A Legal Handbook For Founders

Essential reading for anyone building their startup. This free guide includes practical advice and seven real-life case studies.

Download Now

Use Metadata

Metadata is information about the data you are using or managing. To manage data, you can include information about the data, so it is easily discoverable for future use. In addition, specific information is more searchable in a large amount of data and can save you time and stress. 

For example, let us say you have a large amount of data containing customer names, email addresses, most bought products, and payment methods. It would be challenging to scroll through all the information to gauge which product is the most popular among the customers. Instead, you can use metadata to create field descriptions and filter the data to showcase which product is the most bought among customers. 

You can use metadata to include information such as:

  • author;
  • field description;
  • when data was created;
  • where data was created;
  • why data was created;
  • file size or type; and
  • last modification date and time;

Reduce Duplications

During increased data collection, it is likely that some data entries are duplicates of pre-existing data. Duplications cause data software to become overcrowded and reduce accuracy if both entries have different information. Your startup should have processes in place to minimise duplications of data. However, your methods should allow data to be updated to ensure data stays accurate and clean.

For example, a customer may make repeat purchases, and you may be recording what each customer is buying. If the customer bought one item twice, then the item type they bought may only be recorded once. However, your process should update the entry if the customer buys a different product, so their information will show that they bought two different products at two different intervals. 

Maintain High-Quality Data

As data flows increase, you may lose track of how accurate data is. The principle with data flows is if the input is garbage, the output will also be garbage. This is known as garbage in, garbage out, or GIGO. To minimise GIGO, you need to ensure that your business records high-quality and clean data continuously to make better business decisions. When recording data, it should be:

  • accurate;
  • complete;
  • valid;
  • unique; and
  • consistent.

Key Takeaways

With increased data comes increased issues, and your startup needs to be prepared to manage such data flows. You should first outline business goals in data management, then choose methods to help you execute your goals. You can use cloud computing to efficiently manage high volumes of data and metadata to ensure data is organised. Reducing duplication and ensuring high data quality is vital to keep data manageable and accurate.

If your startup needs help managing data flow, you can contact our experienced startup lawyers, who can assist as part of our LegalVision membership. You will have unlimited access to lawyers who can answer your questions and draft and review your documents for a low monthly fee. Call us today at 0800 005 570 or visit our membership page

Frequently Asked Questions

What is cloud computing?

Cloud computing is an application-based software that stores your company data on remote servers, which can be accessed through the Internet. Cloud computing services can either be public, private, or hybrid. 

How can I maintain high-quality data?

To maintain high-quality data, you must ensure that data inputs are accurate, complete, consistent, and valid. This will minimise GIGO, so data is available and ready for use. You can also reduce data duplications through cross-checking and having processes in place, so duplicate data is not recorded. 

About LegalVision: LegalVision is a commercial law firm that provides businesses with affordable and ongoing legal assistance through our industry-first membership.

By becoming a member, you'll have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal assistance your business needs, for a low monthly fee.

Learn more about our membership

Need Legal Help? Submit an Enquiry

If you would like to get in touch with our team and learn more about how our membership can help your business, fill out the form below.

Our Awards

  • 2019 Top 25 Startups - LinkedIn
  • 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice Winner – Australasian Lawyer
  • 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2021 Law Firm of the Year - Australasian Law Awards
  • 2020 Law Firm of the Year Finalist - Australasian Law Awards