When it comes to digital marketing analyst, there are several aspects that professionals have to deal with. For example, from setting up the website’s domain name to analyzing big data and forecasts, a marketer needs to pay attention to various sectors to ensure sales can increase over time for their clients.
Furthermore, most businesses aim to see their products on the shelves of top retailers and market chains, both in their country of origin and the international waters.
However, these businesses have limited media exposure and knowledge about marketing and analyzing the numbers to predict accurately and precisely.
That’s where a digital marketing analyst comes into the role play. It is the job of an analyst to promote the businesses and ensure that they can quickly achieve the turnovers so that the numbers can seem to be promising.
“Mediocre marketers think in terms of campaigns. Great marketers think in terms of growth frameworks. “ – Neil Patel.
Why do Startups and Equities Need Marketing Investors?
“Stop selling. Start helping” – Zig Ziglar.
Startup businesses need a lot of funding to promote themselves, get proper media coverage, and even increase their production and introduce several other products or services to the market.
Being a digital marketing analyst, you should know that the consumer supply and demand chain is changing dynamically at a tremendous speed. Therefore, it is becoming difficult for startups to develop different business ideas parallelly to gain more customers. Still, the initial years can get quite tricky in terms of earning profits.
That’s why these startups look for new investors who can provide them with funds and the channels for growing the businesses while increasing the revenues. So if you are still in doubt about the startup investments, don’t get too concerned.
The qualities of a digital marketer can help any company build their business from ground level and that is what makes them the right choices for startups and small businesses to onboard.
Here are more reasons why startups and equities need funding from finance players, angel investors, or digital marketing analysts:
- Startups usually have a unique business idea that makes them stand out in the crowd. However, to give the concept a real-life form, they need ample funding from investors to do R&D.
- Most entrepreneurs look for investors who can provide them with huge network coverage for publishing, marketing, and promotion. It is possible only for a digital marketing analyst to provide such exposure to the businesses, starting with digital media to influential channels.
- Marketers turned into investors can provide businesses with in-depth ideas and knowledge about the marketing domain. According to several studies, it has been proven that with the help of the best finance management tools and techniques, a marketer or a digital analyst can easily manage their investments by focusing on market statistics.
- Also, a marketer usually has a vast network that can help the startups attract a considerable audience section. This is one of the main reasons for which entrepreneurs often seek help from a marketer.
So How are Digital Marketers Shifting into Investing?
It can be challenging for startups and equities to hire marketing analysts because they don’t come cheap. Plus startups need massive market coverage, limelight, and investment to kickstart their journeys. This is why several marketers are now shifting their focus to becoming angel investors in such businesses in exchange for company stakes.
If you keep track of the changing dynamics of the finance world, you will find several self-made millionaires have been marketers or analysts at one point in their careers, and now, they have their investing firms.
For example, Carl Icahn, a US-based investor, is considered to be one of the dragons of the finance world. Since 1968, he has invested in different businesses and companies like Time Warner, Marvel, Netflix, Phillips Petroleum, and many more. Presently, Icahn Enterprises has assets worth over $8 billion.
Another such personality is Jason Calacanis, whose name is pretty well-known as one of the best angel investors in the finance market. He not only invested in Uber, the world’s most popular transit company but also in several other startups. So his network is extensive and quite widespread, a network that most startups need today.
Seeing such more prominent players, it’s clear that as a digital marketing analyst, one can easily have the upper hand in earning fame, money and broadening their network. Therefore, it’s best to carefully consider the benefits of investing in other companies before making any conclusions.
Can a Digital Marketing Analyst Invest in Startup Businesses and Equities Easily?
As a digital marketing analyst, it’s common to doubt whether there is any profit in investing in startups or not. But, to be honest, becoming an angel investor is not easy and can’t be done overnight.
The initial investment is mainly made from your self-made money, which is why many digital marketing analysts think hundreds of times before deciding.
However, having proper technical skills can help a digital marketing analyst earn profits from investments.
For example, suppose you are proficient in analyzing big data and generating reports and forecasts. In that case, it will become much easier for you to predict whether an investment has chances to flourish in the future or not.
So, it’s pretty clear that a digital marketing analyst or a marketer can start investing in startups to make a profit. However, before that, there are some details that you must be aware of, mainly the reasons for which active investment can be profitable in your career in the digital market, be it as an analyst or an investor.
Why Should a Marketer or Digital Marketing Analyst Invest in Startups and Equities?
“Always wake up with a smile knowing that today you are going to have fun accomplishing what others are too afraid to do.”– Marc Cuban.
Coming to the main topic, it’s time that you know about the main reasons a digital marketing analyst or a marketer needs to learn about investments in startups or equities:
Marketers are the best in studying and forecasting the market demands
One of the main reasons you need to be an investor is the skills you developed and nourished while working as a digital marketing analyst.
For example, when working as a digital analyst, you know how to study the changing market dynamics, consumer supply, demand chain, and trends followed by other competitors.
Furthermore, you know how to find patterns from big data, analyze them, and generate reports.
That’s why investing in startups and businesses will be a good idea. You won’t have to take help from others to provide the company with exposure insights for its growth.
Predictions and analysis can be made accurately
When you are working on making a proper investment decision, it is essential to understand whether the forecasts submitted by the company are reasonable and practical or not.
As a digital marketing analyst, it will be easier for you to judge the business predictions regarding sales, profit to be earned, net worth, and other such figures.
Hence, you won’t have to put too much effort into deciding whether the investment will be profitable for you or not in the coming years. In addition, it will allow you to make a bid for more shares or equities in the startups.
It gives more opportunities to learn about other markets too
As a digital marketing analyst, let us imagine you work for a healthcare company. So, you know the healthcare market inside and out.
But what about other markets, like retail, supermarkets, the food industry, and so on?
These markets are multiplying, and several new startups have already established a robust and firm foothold.
It’s pretty clear that by becoming an investor, you will get more opportunities to learn about other markets, their trends, how dynamic the supply and demand chain is, and several such facts.
You might be a natural stock picker
One of the main qualities of a digital marketing analyst is that most professionals know how to decide which stock will be better for giving you positive investment returns. Moreover, this knowledge usually develops nicely over the years of analyzing companies’ growth.
With such a skill, you can choose between the startups and decide which stocks will be the best to invest your money into. Furthermore, you will reduce the chances of making a wrong decision tenfold.
Learning the finance market will be good for you
As an investor, you can know more about the finance market which is not impossible otherwise for a digital marketing analyst. Hence, you can understand the dramatic changes and trends being followed in the investment market and how it affects other industries and the nation’s economy.
In addition, you will know the risks of the finance market and the opportunities, which will further help you make the best decision.
Investing in startups is tangible and quantifiable
Believe it or not, startup investments are far better than digital currencies, stock and exchange markets, or trade markets. Knowing the marketing trends, you can quantify the business accordingly. These marketing trends aren’t going to disappear the next day, which is why the risks are lessened.
However, with other types of investments, the risks might be more in comparison to the profit you can earn. In addition, you will have a stake in the startup as you will have some equities with you. This is not possible in any other investment type.
You already have a creative and thoughtful mind
“Imagine a world in which every single person on the planet is given free access to the sum of all human knowledge.” – Jimmy Wales.
One of the best advantages of investing as a digital marketing analyst is your creative and thoughtful mind. In addition, you have the idea of growing the marketing channels or attracting the influencers, which will be profitable for both you and the startup where you will invest.
Hence, there is no need to help other professionals or learn about marketing tactics and ideas.
Factors to Keep in Mind as a Marketer/Digital Marketing Analyst Before Investing
When you are investing in a startup business or a company, there is a huge list of factors that you should consider. It’s not easy to make a decision, even if you have several digital marketing analyst skills. A wrong decision might cause substantial monetary losses, which is why you need to be cautious before taking the next step.
So, here are some of the significant aspects that need you must consider making a profitable and lucrative investment plan:
Products or services offered by the company
“It’s hard to find things that won’t sell online.” – Jeff Bezos.
To begin, you need to see what the company offers in terms of products or services. Usually, most startups have limited product ranges or diversity in the services, which might jeopardize you. That’s why you need to analyze the marketing trends of the industry to which the startup belongs and study whether it has any profitable future in the market.
Funding needed and equity to be obtained
Different startups have different funding needs, and hence, the equity shares you can earn will also vary.
For example, if company A asks for $50,000 in return for 10% equity, company B might ask for around $70,000 in exchange for the same equity.
So, understanding what the company needs and how successful this venture will be, you need to place the bid. If the investment has risks, you should claim more equity shares which will not let your money go down the drain.
Profits, losses, and turnovers
“We must move from numbers keeping score to numbers that drive better actions.” – David Walmsley.
As a digital marketing analyst, you understand how important numbers are when investing in another company.
So, it is expected that you will pay close attention to the profit or loss the company has suffered in the last two consecutive years, whether they have reached the break-even point, and their past turnovers. This will let you know if you should invest in the said company or not.
Since you have worked as a digital marketing analyst, you will know how vital the forecasts are to understand whether the results obtained were as good as expected or not.
After hearing the market, the company is targeting and their past numbers in terms of finances, you will be able to decide whether or not the forecasts are realistic.
Furthermore, you will also know if the company needs an investor now or is self-sufficient enough to go for another year or two.
Why are Investing in Startups and Equities Better than Stock Investments for a Digital Marketing Analyst?
As a digital marketing analyst, there are two major platforms for investing: trade/stock markets and startups. Usually, we have heard people earning a fortune for themselves by putting their money in the trade markets like forex, stock exchange, cryptocurrency, and so on.
However, these channels are highly volatile and unpredictable, which increases the risks by ten folds. Furthermore, one needs to learn the entire trading market and other related aspects to make profits. That’s why investing in startup businesses is way better than the trading platforms.
The primary active investment benefits you will enjoy as a digital marketing analyst are:
- Trading markets are risky and can result in huge losses if somehow you fail to make the right call and end up selling more assets than what was needed or buying liabilities that are not required.
- Even though investments in startups and equities are taxed as per the federal tax rules, they are legal, and there are fewer chances of being caught in a fraudulent case.
- Also, you can invest in more than one startup and use the profits to grow your marketing channels. Managing multiple active investments is thus much easier in comparison to having several accounts in the trade market.
- With active investments, all you have to learn is about the investing process because, with your skills of being a digital marketing analyst, you will be able to grow the channels with ease. However, stock or crypto investments can’t be mastered in just a few days.
In this entire discussion, we have brought forward several aspects of the relationship between active investments and a digital marketing analyst.
We have discussed how such a professional could benefit from investing in startups and equities, but we have also presented the best ways.
Therefore, if you doubt whether the plan of putting your money in the startups will work or not, you will get the clarification that will help ease your worries.
You have to use your analytical skills and understand how to invest in different industries, from retail to online sales.