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You’ve probably heard the term ‘business instincts’ but what about ‘data-driven decisions’? Far more reliable than a gut feeling, data gives factual insights derived from real information. The science of data is important for organisations if they want to understand what is working, what is not and how the future might look.
A company that can provide valuable and reliable data analytics is sure to be a worthwhile service to many organisations. So, if you were thinking of starting your own data analytics company, then you’re in the right place. Ahead of helping other organisations with their data needs, it’s important to set your company up the right way. After all, it doesn’t take a rigorous data analysis to know that properly protecting your company is an essential part of achieving business success.
What Exactly Is Data Analytics?
Data analytics involves collecting information, assessing any trends or patterns shown and coming up with insights based on the findings. There’s a number of different kinds of data analytics that serve different purposes.
For instance, an organisation might want to see which one of their products or services are selling best, compared to the ones that are not. Perhaps they need a data analysis to assess the efficiency of their own systems and processes. Data analytics can be utilised in a multitude of ways for various reasons.
When starting a data analytics company, it’s imperative to narrow in on the type of data analysis services you will offer. Think about who your potential client base may be, what solutions you can offer them and how you’ll attract their business. From there, you can start to do more research on the market, competition and anything else that will impact your data analytics company. We strongly recommended putting all your research and ideas onto a business plan, so you’ll never lose track of everything you’ve worked on.
Is Data Driven Analytics Of Interest To Companies?
Yes, companies need to have the right information before they can make important decisions. A lot of the time, companies don’t have the resources or correct skill set within their organisation to conduct a data analysis. That’s where they will seek out external help, like that of a data analytics company to provide these services to them.
How To Start A Data Analytics Company In Australia
The first step to starting a data analytics company in Australia is to register your company. Without registering your company, there’s not really much you can do business wise. In order to start operations and trading, you will need to have a legally registered company.
The process for registering a company in Australia starts with the Australian Securities and Investments Commission (ASIC). There’s a good chance you’ve heard of ASIC before – they are the main regulatory body for companies all across Australia. As such, ASIC will play an important role not just in the registration stage of your company, however when it comes to running it as well. It’s a wise idea to get familiar with ASIC and thoroughly understand your duties under it, such as ongoing obligations, fees and updates.
Company registration can be a bit difficult if you’re not familiar with the legal side of registering a company. Even though the application to register a company can be done online, it would be naive to think of it as a simple task.
To register a company, you’ll need to know what legal structure you want your data analytics company to have, who the directors and shareholders are as well as how the company will be governed. All of these choices will have a huge impact on the future direction of your data analytics company, so it’s imperative to get it right from the start.
Having the help of a legal expert is a wise idea, as they can make this process much easier. A legal expert is well versed with ASIC, can advise you on the best legal structure for your company and make sure all the necessary details are sorted to fit your company’s goals and vision. Get in touch with one of ours today.
What Kind Of Contracts Do I Need For A Data Analytics Company?
After your company has been expertly registered with ASIC, the next item on your to-do list is to get all the right legal documents drafted. This is another important step as it will determine how well protected your data analytics company is. Unfortunately, many companies run into avoidable trouble that drains their time and resources simply because they didn’t have strong legal agreements in place.
Be sure to avoid this situation for yourself and your company by getting legal agreements drafted early on. A few legal agreements to consider getting include:
Service Agreement: This is the primary agreement you will have with your clients, outlining matters such as the scope of work, payment terms, confidentiality and dispute resolution procedures.
Privacy Policy: If your company is going to have a website that collects personal information from users, then it’s necessary to have a privacy policy in place to comply with privacy laws. A privacy policy lets users know how your company will collect, use, disclose and manage their information.
Website Terms and Conditions: A website terms and conditions sets out the legal responsibilities of both the website owner and users, including usage rules, disclaimers and limitations of liability.
Employment Agreement: Thinking of hiring employees? It is important to have a contract specifying the terms of employment such as role description, salary, work hours and termination.
Non-Disclosure Agreement (NDA): An NDA will make sure that any information you need to keep between you and another party can remain confidential.
What Else Do I Need To Start A Data Analytics Company?
The next part in properly starting your data analytics company involves an understanding of the law. You don’t need to sit down and read a bunch of legal textbooks, however it does pay off (sometimes literally) to seek expert legal advice.
There’s a number of laws that will impact your data and analytics company. Australian Consumer Law, Data and Privacy Law and Employment Law are some of the main legal areas you will need to consider. Matters such as protecting the privacy of your clients, ensuring your services are up to consumer law standards and providing employees with their basic entitlements are not to be taken lightly, as they are your legal obligations as a company.
There might be other, more niche laws that apply specifically to your industry or your locality, such as council permits and approvals to run your company. Obviously, that’s a lot of different laws to keep up with! It’s a good idea to chat with a legal expert about your regulatory compliance concerns – they can do the legal research while you focus on launching your data analytics company.
Next Steps
A data analytics company can be a great new company, however it’s imperative to take care of the legal considerations to give your company a strong start. To summarise what we’ve discussed:
- Proper legal setup is crucial for the success of your data analytics company
- Define your data analytics services, identify potential clients, and develop a business plan
- Register your company with ASIC, understand legal obligations, and decide on a legal structure
- Draft essential legal documents such as service agreements, privacy policies, website terms, employment agreements, and NDAs
- Understand key laws affecting your company, including Australian Consumer Law, Data and Privacy Law, and Employment Law
- Seek legal advice to ensure compliance with relevant laws and regulations
If you would like a consultation on starting a data analytics company, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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