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6 Tips To Create A Great Design For Your Startup

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In the last few years, I have seen a host of sites appear that help you with design for your business or personal brand. Seeing as I know nothing about the subject of design, I thought I would interview the founder of the very popular DesignCrowd business, Alec Lynch, to educate us all. Alec started the business because he saw a problem with businesses buying designs from traditional methods. He viewed the process as slow, expensive and even risky. The risk he saw was that it could take a few months and then after all that you could hate what you ended up receiving from the designer.

Talented designers struggled to break into the design industry. In Australia, for example, there are 20,000 designers employed full time but around 60,0000 have graduated from design courses and don’t have employment. The numbers are similar in other developed economies. DesignCrowd attempts to fix the traditional problems of the industry by allowing customers to get designs faster (first designs by the morning), offering better value for money, allowing more creative designs (with over 400,000 designers), allowing designers to compete on creativity as opposed to cost, and allowing more choice with an average of 60-100 designs for your project.

DesignCrowd was launched in January 2008 out of Alec’s mums garage in a design industry that now is now more than $50 billion dollars. The first 2 years of the company were funded my credit cards and loans from Alec’s friends and family, in 2009 they raised $300k AUD in angel investment and grew the business fourteen-fold over the next two years. In 2011, they raised a Series A venture capital round of $3 million with Starfish Ventures.

Since then they have grown the team from three people to thirty-five people. In 2013, they raised a Series A1 again from Starfish Ventures and then in 2015 they raised a Series B led by Airtree Ventures for a further $6 million AUD. Their current revenue run rate is $20 million per year, and more than 75% of their customers are outside of Australia.

“The main thing that separates a wannapreneur from an entrepreneur is action. Don’t get too lost in books and start your business on the side or buy a domain name, but just take action”

Similar to Blue Dot, who we interviewed earlier, Alec and his team approached dozens of venture capital firms before they found the right one. Some of these approaches were relationship building, and others were actual pitches. In order for them to raise a round of funding it typically took 3-12 months to put a deal together. Alec says, “the more firms you approach, the more chance you will have of being successful in funding your startup. If you end up speaking to a large number of firms and you don’t get much interest, it probably means you need to look at your pitch, the product or the even your team.”

Having multiple, interested investors through this process can also assist in creating that magical, competitive tension that works in your favour.

Time Square and Virgin have used the platform, and there have been quirky projects like a tattoo design that says who’s your momma and a snowboard design – the options are limitless. Expect to see DesignCrowd expanding further in the USA and UK as well as other geographies.

The secret sauce of online marketplaces

One of the hardest challenges to overcome in any marketplace business is getting both sides of the market onto your platform. DesignCrowd took the logical approach and started by getting the designers first. They did this by running a crowdsourced contest and offering some money to have their own logo designed. This contest was promoted at design colleges and universities to attract designers to the marketplace.

As they acquired customers and projects were put up on the site, more designers came to the site and started telling each other in a very organic way. The other way they have increased both sides of the marketplace is to make some small acquisitions of websites and design communities, which has helped inorganically, grow the bottom line.

Many marketplaces have a natural “viral loop.” When a customer posts a project and requests a design with an offer of money, this creates content. Essentially this is a job listing that Google can now index, and it can be shared with other designers.

As designers respond by uploading designs, once the project completes each of those designs become public on their own page linking to the overall project and the designer who created them. This also creates content for Google and bloggers which helps attract designers and new customers.

 
 
Below are the six tips that Alec Lynch gave me for creating a great design for your startup.

1. Attract a good designer

To attract a good custom web design company to your project you need to write a good brief, that’s not too long and not too short. Really short briefs signal to designers that you don’t really care or you might not be clear what you want. If your brief is too long, it can imply that your work is too difficult and is going to take a designer too long. In a marketplace context, a designer could be more inclined to gravitate towards a project that is easier. If you have lots of ideas about your design, you need to find the essence and the direction you want to go in a simplified way. Prioritise the parts in the design that are most important to you. Amarillo web design company will work with you to understand your unique business needs and goals, and create a custom website design that reflects your brand identity.

2. Pay your designer a fair price

You should be offering an amount of money for your design that your startup is comfortable paying and think is good value. Ideally you want to be offering more than the average amount of money in the marketplace, and then you will naturally attract the best designers that are on the site. It’s also worth handpicking designers from the directory that’s available.

On a platform like DesignCrowd, you can offer small participation payments to top creative digital agencies that come off your budget, to encourage them to work on your project. Designers typically put more effort into these projects and prioritise them over others, which can help you get the best design.

3. Consider using the same designer again for future work

Sites like DesignCrowd allow you to work one to one so once you find a designer you like, this can be an easy way to move forward without having to run contests in the future. Around 20% of projects on DesignCrowd are follow-up projects. Even if the designer you used two years ago is not active, there is usually a 95% chance that they are still available on the site, so you can reach out to them again.

This was something that I found very comforting to hear. In the real world, you would normally only have a relationship with one designer that could be risky for your business if they become busy or go full time with another client. With a marketplace, you can go to other designers quite easily and basically have an unlimited design team. All the designs are also submitted to the site with industry-standard source files so that designs can be easily manipulated by other designers if need be.

4. Get all the elements of your design right

You want a design that is effective and helps you achieve your business goals. If these goals are related to growing revenue, then your design needs to match those goals. Brand awareness, brand loyalty and brand association are all things that you should aim for. In terms of colors, if you look at the top 100 brands in the world through interbrand, the most popular color is blue and then followed by red. While you don’t have to use these colors, it’s worth knowing what the best use.

If it’s a website your designing, then you want a design that helps convert traffic into sales. Understand the different elements of your website like your calls to action, your design / layout, your colors and your copy and make sure they are all based on converting traffic. All these elements need to be continually tested and improved in order to get the best result.

David Ogilvy Quote “Never stop testing and your advertising will never stop improving”

5. Use all the tools of a marketplace

On DesignCrowd, you have access to a directory of designers where you can go and look at their portfolio. There is a polling tool that allows you to poll your customers, friend’s family and employees about what they think of your design. For those of you who are looking to hide your projects from Google and competitors, there is also a function that allows you to do this. In terms of social media, make sure you use it throughout your design phase to gather opinions on what you’re doing and see if you are on the right track.

6. Avoid common design errors

Don’t make your design too complicated or have too much detail. If you’re getting a website design, don’t have too many things on the page and keep it simple for the user. You should try not to make the mistake of having a design that is effective to you or meaningful to you, rather than what will resonate more with your target audience. To uncover what will work, you can try testing your brand or design using Google Adwords to see what get’s the best outcome. You could also look at trying different domain names at the same time.

Final Tip

“No matter how good your idea is there is a fairly probable chance that someone else in the world has that idea. It may be the case that no one else has acted on that idea, but there is always a chance that they will if it’s a good idea. That said, you will always have competitors”

If you are working on a design for your startup check out DesignCrowd for some tools that will help you stand out from the rest.
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Startups

5 Strategic Power Moves to Successfully Build Your Empire

Transitioning from idea to empire is a journey of strategic planning, execution, and constant evolution

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how to build your empire

The journey from a fledgling idea to a thriving empire is both exhilarating and daunting. The Startup Launchpad is not just a process but also a strategic framework that enables visionary entrepreneurs to become market leaders. This framework comprises five power moves, each a critical steppingstone in building a successful business.

These moves—Ideation, Business Plan, Online Presence, Strategic Marketing, and Launch and Growth—are the blueprint for turning aspirations into achievements. (more…)

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How to Avoid Startup Clichés and Buzzwords When Pitching Investors

Using jargon can make you sound like you’re trying to fill space instead of providing meaningful data

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How to pitch investors better

Entrepreneurs frequently seek startup funding through a variety of channels. Yet, none seem as challenging as successfully pitching to experienced investors. After all, investors are pressed for time and eager for opportunities. These characteristics make it challenging to motivate them, especially if you’re bombarding them with a pitch full of jargon. (more…)

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From Idea to Empire: 5 Power Moves for Your Startup to Thrive in Today’s Market

As an entrepreneur, I’ve learned that understanding market dynamics and choosing the right business model are crucial

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How to thrive in the startup market in 2024

As an entrepreneur, I’ve learned that understanding market dynamics and choosing the right business model are crucial.

A few months into the startup, I was quick to gauge why it is necessary to go beyond the nuances of operational efficiency and the art of sustaining a business amid growing competition.

Collaboration is key.

The HR and the recruiting teams work with departments to foster a culture of collaboration, but what’s indispensable to business performance is the sync between the marketing and sales teams. What we’d consider as entrepreneurs is the need to ensure seamless collaboration to predict and achieve business goals together. In turn, this will help secure long-term recurring revenue for the business.

Besides, entrepreneurs need to focus on revenue as they gear up to take their startup from $0 to $1 million. The journey is filled with critical decisions, from identifying your target customer base to choosing the right funding strategy.

So, what next?

Read on… because here are five practical, results-driven strategies that you as a founder can implement to make a mark in their industry.

#1. Embrace the Lean Methodology

What is lean methodology?

It is all about pivoting resources to create more value for customers with fewer resources. 

This principle encourages you to be more agile and allow rapid iteration based on customer feedback rather than spending years perfecting a product before it hits the market.

Want to implement it?

Here’s what you can do.

Build “Measure-Learn” Loop: What I did was develop a minimum viable product (MVP), a simple version of the product. You can do the same since it allows you to start the learning process as quickly as possible. After launching MVP, measure how customers use it and learn from their behaviors and feedback.

Here’s what I can recommend here:

  • Identify the core features that solve your customers’ primary needs and focus solely on those to develop your MVP.
  • Know the feedback channels where early users can communicate their experiences, suggestions, and complaints.
  • Analyze user behavior and feedback to make informed product development and iteration decisions.

#2. Focus on Customer Development

Let’s talk about taking our startup to the next level. 

It’s not just about getting customers – it’s about really getting to know them. We need to dive into their world, understand their struggles, and see how our product or service can make a difference in their lives. 

It’s like we’re detectives, piecing together the puzzle of our business hypothesis by actually chatting with our customers

What would you ideally do here?

Understand Customer Segments: I’d say, start dividing your target market into segments and develop a deep understanding of each segment’s demographics, behaviors, needs, and pain points. The idea is to get into their shoes and really feel what they feel.

Ensure your Product Clicks: When starting up, think of what you offer and consider whether it clicks with what our customers need. My thought was “Does my product solve their problems? Does it make their day better?” Put yourself through a tough grilling session to show customers the value proposition and ensure that the product’s promise matches what our customers are looking for.

I’d recommend the following actions here:

  • Talk to them – through surveys, interviews, or even casual chats. The goal? To gather real, raw insights about what they need and expect.
  • Use the collected data to create detailed profiles for each type of customer. This way, everyone on our team really understood we were serving. I think this should help your startup as well.
  • Try out different versions of our product with a few customer groups. It’s all about feedback here – understanding if you’re hitting the mark or if we need to pivot.

#3. Foster a Data-Driven Culture

The digital world is highly data driven since it fuels key decisions in a startup. 

I believe it’s essential for us to build a data-driven culture. This means, you’ll move from making decisions based on hunches or assumptions. Instead, the focus should be on data analytics and insights to guide our strategies and improve our outcomes.

What can you do?

Use Data Analytics Tools: You should be using these tools to gather, analyze, and interpret data related to customer behavior, market trends, and our business operations. Here, consider the adoption of pipeline forecasting that leverages AI to find patterns in marketing data. 

In turn, you’ll get areas for improvement since it can analyze historical data and predict the outcome for you to plan your.

Action Items:

  • Pinpoint key performance indicators (KPIs) that align with your business objectives and ensure they are measurable and actionable.
  • Next, you can consider training your team to understand and use data analytics tools. This might involve workshops or bringing in experts to build a data-savvy workforce.
  • Once everything is in place, regularly review data reports and dashboards. This gives us a clear picture of a startup’s health and helps adjust your strategies and predict future trends.

#4. Strengthen Your Financial Acumen

A good grip on financial skills is important to steer your business towards growth and making sure it stays on track. For this, you’ll have to understand the money side of things, which helps you manage your cash flow. Think of figuring out smart investment moves and sizing up any risks that come your way.

Here’s a tip on how you can get savvy with your finances.

Maintain Rigorous Financial Discipline: I’m really focused on cultivating a strong company culture, one that truly resonates with our mission. So, I’d suggest fostering open communication and encouraging a sense of ownership and collaboration among everyone in the team.

Action Items:

  • Get to know your financial statements inside out – I’m talking about the income statement, balance sheet, and cash flow statement. These are like the vital signs for your business’s financial health
  • Use financial forecasting that helps predict your future money moves. With this, you will have a heads-up on upcoming revenues, expenses, and how much cash you’ll need. Also, research on the available financial forecasting tools that can make predictions spot-on.
  • Don’t go at it alone. Regularly touch base with financial advisors or mentors. With them by your side, you’ll have a fresh perspective on your financial strategies to ensure you’re on the right path to hit your business goals.

5. Prioritize Team Building and Leadership Development

It is crucial to focus on building a solid team and developing strong leaders. This means putting our resources into the people who are going to propel our company forward. 

What you’ll aim for here?

Creating a culture where everyone collaborates and every team member has the chance to emerge as a leader.

What I would do:

Cultivate a Strong Company Culture: This culture should mirror our mission and foster open communication. It’s important that it encourages everyone to feel a sense of ownership and work together.

Invest in Leadership and Team Development: As founders, we’ll have to make way for opportunities for teams to enhance their skills, face new challenges, and grow in their careers.

Some concrete steps that you should consider taking:

  • Begin with clearly communicating your startup’s vision, mission, and values so that every team member is on the same page.
  • Conduct regular team-building activities and workshops to boost skills and strengthen a sense of unity and collaboration.
  • How about starting a mentorship program within our organization? The more experienced team members could guide and support the growth of newer or less experienced folks.
  • Alas… encourage feedback at all levels. We should keep striving to create an environment where open, honest communication is the norm and everyone feels safe to speak up.

I know it’s one thing to get your head around these ideas and quite another to actually make them a part of your everyday business life. But that’s where the real magic happens, right? It’s all in the doing. 

As a startup founder, this means more than just being a big dreamer. How about rolling up your sleeves to be the planner who pays attention to the smallest details. Ultimately, these tips and more tactics around it will help carve a leader in you who listens and cares and the learner who’s always ready to adapt

So, as you’re either starting out or moving forward on this entrepreneurial adventure, keep these practical tips right there.

May these be your guiding lights, helping you steer through the wild and exciting world of building a startup that’s not just a dream, but a thriving reality.

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12 Things I Learned in 12 Months of Working on My Startup

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Image Credit: Unsplash

A few weeks ago I launched my startup. It took exactly 12 months from the initial idea until the moment I saw my app in the App Store. And these were some of the most challenging, fun and exciting 12 months of my whole life. (more…)

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