How to become a business data analyst

Are you searching for a career where you can use your math skills in real-world situations? Read our guide to learn how to become a business data analyst and why it may be a good role for you.

What does a business data analyst do?

Business data analysts collect and analyze data to help businesses improve and streamline products and business activities. In this role, your daily tasks may involve:

• Collect data via software and surveys from internal and external sources
• Clean data by removing errors and redundancies
• Build statistical models that can identify trends and forecast outcomes
• Use insight from data to identify areas for improvement
• Use data to support the development of new business strategies
• Create visual reports and dashboards to simplify findings for all stakeholders

The Bureau of Labor Statistics (BLS) indicates that the median annual salary for business management analysts in 2023 was $99,410.

Steps to become a business data analyst

If you're looking for information on how to become a business data analyst, consider taking the following four steps to start or advance this robust career.

Step 1: Earn a bachelor's degree

A bachelor's degree is not required to become a business data analyst. However, some employers prefer candidates that have one. Earning a bachelor's degree in data science, computer science, business management, statistics, or finance can prepare you with courses in:

• Statistics
• Probability and data analysis
• Data visualization
• Data science communication
• Programming in R and Python
• Regression analysis

This information can give you the practical tools you need to succeed in business data analyst roles.

Step 2: Build your portfolio

Practical experience is highly valued in data science fields, so building a portfolio that demonstrates this experience can be important.

Internships, volunteer work, and personal projects can help you to build experience analyzing data and solving real-world business problems.

Finally, consider using publicly available datasets to analyze and present findings. As you work through each project, you should look to gain the following skills to show off to employers:

• Data visualization tools like Microsoft Power BI and Tableau
• Data manipulation and retrieval in structured query language (SQL)
• Data cleaning and preparation
• Statistical analysis and modeling

You can also consider taking courses to gain some of these skills.

Step 3: Start your career in an entry-level role

Many business data analysts will start out in entry-level roles. What you do in this role will vary based on the needs of the company you work for. However, you will likely collect, clean, and structure data.

In an entry-level role, you may also analyze data and use visualization tools to turn your actionable insights into something all stakeholders can understand.

Step 4: Consider an advanced degree

Once you have landed your first entry-level role, an advanced degree can help you secure leadership roles.

A master's in business analytics or a related field that provides rigorous coursework in the following areas is ideal:

• Computing and modeling
• Machine learning
• Business processes
• Econometrics
• Visualization
• Risk analytics
• Strategy

Get started on edX

Sign up for edX boot camps and courses in data analytics to learn the fundamentals of the field and gain hands-on experience to help you land your desired role.