Why You Should Be Leveraging Public Company Data To Get Smarter About Your Own Startup

 As a founder of a startup or early-stage eCommerce business, you’re constantly making decisions: What to prioritize? Where to invest? How to allocate resources? But without context, these decisions can feel like educated guesses, at best.

This is where public company comparables can come into play. By leveraging the financial data and guidance shared by larger, publicly traded companies, you gain a lens into your industry—one that offers valuable context and clarity about the environment your business operates in.

In this blog, we’ll explore how to use public company data to benchmark your own business, understand industry trends, and make better decisions.

Why Context Matters for Startups

Running a startup often feels like operating in a vacuum. You have your own metrics, your own goals, and a limited view of how your performance compares to others in your industry.

Public companies, on the other hand, publish detailed financials in their quarterly and annual filings (10Qs and 10Ks), as well as offer guidance on their outlook. These documents provide:

• Metrics: Gross margins, marketing as a percentage of sales, operating expenses, and more.
• Trends: Management commentary on market conditions, customer behavior, and growth opportunities.
• Insights: Strategic priorities, challenges, and pivots based on real-time data.

For startups, this isn’t just interesting—it’s invaluable.

How to Use Public Comparables to Gain Context

1. Benchmark Your Margins

One of the simplest ways to use public company data is to benchmark your gross margins, operating margins, and net margins.

For example:

• If the average gross margin in your industry is 60%, but your business is sitting at 40%, it’s a signal to evaluate your pricing, COGS, or operational efficiencies.
• Similarly, if public companies are spending 20% of revenue on marketing and you’re spending 40%, it’s worth analyzing whether your customer acquisition strategy is sustainable.

By benchmarking against these metrics, you can spot inefficiencies and opportunities to improve.

2. Learn from Their Outlook Guidance

Public company CEOs and CFOs regularly share their outlook in earnings calls and reports. This includes their expectations for revenue growth, margin pressures, and market trends.

Here’s why that matters:

• Early Warnings: If a major player in your industry signals slowing demand, it could mean you need to tighten inventory or revisit your forecasts.
• Opportunities: If they’re investing heavily in a new product line or market, it could signal an area worth exploring for your business.

For startups, this is like having a crystal ball into where your industry might be headed.

3. Understand the Bigger Picture

Public company data provides more than just numbers—it tells a story about your industry’s current state and future direction.

For example:

• What’s happening with supply chain costs?
• Are companies seeing stronger growth in direct-to-consumer (DTC) channels or wholesale?
• How are they managing profitability in a high-inflation environment?

By tapping into these insights, you can make decisions that aren’t just reactive but strategic, based on the broader context.

Why Comparables Offer Clarity for your Startup Finances

When you combine context from public comparables with your own business data, you create clarity in three key areas:

1. Clarity on Performance

Benchmarks give you a clear sense of whether your metrics are competitive. If you’re below industry norms, it identifies where to focus improvements. If you’re above them, it reinforces what’s working.

2. Clarity on Strategy

Public company strategies can inspire your own. For instance:

• If competitors are increasing marketing spend to drive top-line growth, should you consider doing the same?
• If they’re diversifying revenue streams, is there an opportunity for you to launch a new product line?

3. Clarity on Risk

Guidance from public companies often includes potential risks—economic downturns, supply chain disruptions, or customer shifts. Understanding these risks helps you prepare and adapt your business plan accordingly.

How to Access Public Comparables

Getting started with public company data doesn’t have to be daunting. Here’s how you can access and leverage this information:

1. Review 10Ks and 10Qs: These filings are publicly available through the SEC’s EDGAR database. Look for sections on management discussion and analysis (MD&A) and financial statements.
2. Listen to Earnings Calls: Most public companies host quarterly earnings calls where they discuss performance and future plans.
3. Use Tools: Platforms like Yahoo Finance, Bloomberg, or Seeking Alpha often summarize key metrics and insights from public filings. I personally use a tool called 'SheetsFinance' which is a (paid) Google Sheets plugin that allows me to get this data synced straight into Google Sheets. 
4. Follow Analysts: Equity analysts frequently share reports and summaries that highlight key takeaways from public company performance.

The Startup Advantage: Learning from the Big Players

As a startup, you don’t have to operate like a public company to benefit from their data. In fact, your ability to adapt quickly gives you a unique edge.

• Where public companies might take months to shift priorities, you can adjust in weeks.
• While they need to appease shareholders, you can focus on your customers and growth.

By learning from their successes and challenges, you can position your business to thrive in a competitive landscape.

Final Thoughts on using Public Company Data for your Startup

Comparables offer context, and context offers clarity. By analyzing public company data, you’re not just benchmarking your business—you’re gaining insight into your industry, identifying opportunities, and making smarter, more informed decisions.

In the fast-paced world of eCommerce, clarity is a competitive advantage. The more you understand your environment, the better equipped you’ll be to navigate challenges and seize opportunities in 2025.

What’s one insight you’ve gained from studying your competitors or public company data? Share in the comments—I’d love to hear your thoughts.