Pros & Cons

Start An Analytics Tool

Pros & Cons

Trying to understand the pros and cons of starting an analytics tool?

Here are all of the pros and cons of selling analytics tool online:

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Traffic to your website A analytics tool gives people a reason to visit your website and to keep coming back to you!
Meaningful business connections You never know who you will meet as a analytics tool. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
High margins The gross margins for your analytics tool are typically around 75%, which is considerably high and allows you to grow your business and manage costs easily.
Control of workload With starting an analytics tool, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.
Gain exposure and experience This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!
Unlimited income potential With starting an analytics tool there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.
Amazing perks and discounts Working in the analytics tool comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.
Predictable income stream Your businesses income stream tends to be predictable based on the number of customers you have signed up. This makes financial planning and outlooks much more seamless!
Higher likelihood of getting referrals This business is all about referrals, which can be a a very impactful way to attract and retain customers. It's critical that you have a great referral program in place that incentivizes your customers to tell their friends about your product.
Simple business model A analytics tool has the advantage of a simple business model, which makes launching and building the business more seamless.
Control your own destiny Starting An Analytics Tool allows you to control every aspect of your life and make your own dreams come true every day.
Greater Income Potential With this business, the sky is the limit in regards to your income potential.
Express your opinions With starting an analytics tool, you can express your opinions and knowledge to your audience, which allows you to build your own reputation and identity.
You can work from anywhere! Not only can you start your analytics tool from home, you can also run your business from anywhere in the world. This is the entrepreneur dream.
Strong Demand & Relatively Recession Proof The demand for analytics tool is increasing year over year and the business is known to be relatively recession proof.
You get to inspire others Your business is one that encourages and inspires others, which in itself, can be very fulfilling.
You establish yourself as an expert With starting an analytics tool, you establish yourself as an expert in your niche, which builds your credibility. In return, customers are more likely to trust you and refer you to other friends and family.
Can build solid foundation of clients It's unlikely you will have one-off customers as a analytics tool. Typically, you have a solid foundation of clients that use your product and services regularly.
Make money while you sleep The advantage of starting a analytics tool is that you have the ability to have passive income and make money while you sleep. This is the dream for many entrepreneurs.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Niche Market A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.
Churn In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.
Time commitment With starting an analytics tool, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.
Difficult to build trust with your customer With starting an analytics tool, there can be minimal face-to-face interaction, which means it can be a lot more difficult to establish trust with your customers. You'll need to go the extra mile with your customer to grab their attention and business.
Complex development process. The development process for a analytics tool can be quite complex, which may cause delays and challenges when launching and growing your product.
Complex maintenance Your analytics tool will require a long-term investment due to the need for updates, bug fixes, and security vulnerabilities. It's important that you (or someone on your team) stays on top of this at all times.
Impatient customers You may offer an engaging user experience for your customer, but customers expect a lot and may be impatient if they aren't pleased with your product or service.
Be prepared to get out of your comfort zone! Although this is exciting for some entrepreneurs, it can be a big challenge for others! You may find yourself in uncomfortable social and business situations, jumping into tasks and responsibilities you aren't familiar with, and pushing yourself as far as you can go!
You might struggle financially (at first)! If you bootstrap your business or choose not to pay yourself (or pay yourself less than you were making at your corporate job), this can be financially taxing. It's important to adjust your lifestyle and set a plan for yourself so you don't find yourself in a stressful situation.
Learning Curve When you start your own business, you no longer have upper management to provide you with a playbook for your roles and responsibilities. You should know the ins and outs of every aspect of your business, as every decision will come down to you.
Equipment Breakdowns Over the years, your equipment can get damaged, break down, and may need repairs which can be expensive. It's important you prepare for these expenses and try to avoid damages/wear & tear as much as possible.
Takes time to see results & make money Results and revenue do not come overnight with a analytics tool. Often times, it takes weeks, months or even years for your work to monetize.
Technical issues can be frustrating Technical issues are common in this business. If you struggle with the technical side of things, you may want to consider outsourcing this responsibility to save yourself the time and frustration.
More challenging to earn passive income It can be more of a challenge to make passive income in this business. Often times, the amount of revenue you bring in is limited by the amount of time you have in the day.