It seems that everywhere I go people can’t stop saying how they think Canva will be the next billion-dollar company and how everyone loves their online design platform. Canva Co-Founders Melanie Perkins and Cliff Obercht have been able to convince the likes of Bill Tai, Lars Rasmussen and Guy Kawasaki to join their vision for a revolution in online design technology.
Canva only launched on the 26th of August 2013 and they now boast some amazing stats like:
– Over 5 million users who have created more than 30 million designs,
– Nothing but word of mouth marketing (until recently)
– 600k of unique visitors to the site monthly
– Over 14,000 blogs have written about Canva
– More than 2000 videos have been made about the product
If that was not impressive enough, Canva has raised $12.6M USD to date and has gone from 2 million users to 5 million users in just 4 months. The reason Canva has been so successful comes down to a number of points, which Melanie shared with me in a recent interview.
The whole philosophy of Canva is best described by their Chief Evangelist Guy Kawasaki (former Apple Evangelist), who says that they are democratising design the same way Google democratised search.
The fundamental point that I drill into with Melanie is how an earth they were able to convince influential people to support them even when they hadn’t even built a product and Canva was nothing more than a cool idea.
Below are the nine startup lessons that Melanie taught me about Canva’s journey when I interviewed her.
1. You must have determination and guts
The strongest attribute Melanie has is determination. It takes a long time to create a company and there is a lot of rejection, failure and times where it would be a reasonable thing to give up. A great example of determination is the fact that it took Melanie three years from meeting their first investor to actually landing the first investment.
Let’s face it, most startup founders would give up after 12 months, but if you keep an eye on what you are trying to achieve and really keep focused on the vision (the vision is what people will rally behind in time), you will eventually break through and come to the right solution.
2. Influence one lighthouse person (the butterfly effect)
One of the sole reasons Canva has been a big success is that Melanie focused in the early days on finding one highly influential person in their space and getting them to help with their startup – stop trying to meet hundreds of people and just concentrate on a few big names.
The first person that Melanie was able to connect with was the very well-known venture capitalist Bill Tai. She met him in 2011 when he was in Perth for an event called inventor of the year and he told her to look him up when she came to San Francisco.
Like any clever entrepreneur, Melanie took action and six months later she arrived in San Fran where she planned to stay for two weeks. After meeting Bill there, Melanie ended up staying for three months. Bill told Melanie that for him to invest in Canva she must find a technical team to build the product because at this stage it was no more than an idea.
After raising the problem, he then introduced Melanie to Lars Rasmussen, who agreed to help find the technical team. One year later they had a technical co-founder that Lars referred to them. The beauty of this whole process was that Melanie was able to get some amazing people to buy into her vision even before she had any product at all.
When I asked Melanie how she was able to influence so many high profile people, she said to me that she has a diagram, which she calls the butterfly effect. The diagram shows once she was able to influence one powerhouse person like Bill, her network followed a butterfly effect and she met everyone else through some sort of link to Bill.
Every single step along the way you could say “if that didn’t happen nothing would have happened” – that’s the butterfly effect. You don’t know what could have happened or would have happened. How do you find people like Bill? The same way everyone else does; through conferences, LinkedIn, email, telephone, along with persistence.
3. You don’t have to be a coder
Many startup founders have a limiting belief that you must be a coder of some sort to be a founder of a tech company. First of all, every new startup can be considered a tech startup because almost every product will be connected to the internet in some way.
Secondly, Canva Founders Melanie and Cliff had no coding experience what so ever. With their first startup Fusion Books, they outsourced all the technical part of their business to another company.
This was a great lesson for them because it allowed them to focus on learning how the technology works, educating themselves on product management, and it even helped them to develop project management skills.
They learnt on their second startup Canva that because the product was heavily reliant on technology they would require a technical co-founder. The genius of their startup was that they had a highly skilled person, Lars Rasmussen that was doing the hiring of software engineers.
This resulted in only the best engineers being hired and allowing both founders to focus on their strengths because the technical side was taken care of. When they eventually brought in a technical co-founder, they had someone who had equity in the company and who was then motivated to see the business succeed.
Also, keep in mind that highly skilled engineers are attracted to things that are very challenging and have never been done before so if you’re startup’s vision aligns with this, the odds are stacked in your favour.
4. Having a startup track record helps
If you’re attempting to convince investors to invest in you before you have a product, Melanie recommends that it’s preferable that you have some sort of track record in business beforehand. When Melanie and Cliff were searching for investment for Canva before they had a product, they were able to show a track record through their first startup Fusion Books that had already had success.
The beauty of Fusion Books was that Melanie and Cliff were able to start with a small niche, prove their skills, and then go wider with Canva. This is great advice for any startup that is in the early stages of executing on an idea.
Bill Tai wanted to invest in Canva even though there wasn’t a product yet because he was very surprised that Melanie and Cliff were able to build a profitable company beforehand (this is extremely rare). He also loved the vision, which is why he chose to help.
5. Don’t be obsessed with the drug called Venture Capital
A lot of startups suffer from the drug that can be venture capital funding. They become obsessed with raising capital and it becomes what they use to benchmark whether they are successful or not. Melanie explained that venture capital funding can be like a time bomb, once you raise, your startup must grow like crazy otherwise if it doesn’t, you will very quickly have no company at all.
The benchmark you should be using to measure your startup’s success is when customers give you their money, which is also a much better way to raise capital. This demonstrates that people other than yourself believe in your startups solution and that it’s solving a real world problem.
If you decide that you must raise venture capital then you should only do so when you know roughly how many people you need, you have a clear execution plan, you know what steps you need to take, and you have a product market fit.
6. The problem you solve must be ambitious
A factor that helped Canva stand out from other startups was that their solution was ambitious. The reality is that highly successful people are attracted to ambitious, challenging and world transforming ideas.
If you want to attract amazing people like Guy Kawasaki to your startup, then your startup must meet this criteria and that’s exactly what Canva did, which is why they attracted great talent. This great talent then attracted more great talent and the success cycle compounded again and again.
Ambitious problems take time to solve and take a long time to build momentum, but when you do solve these types of problems, there will be no shortage of successful people desperate to help you with your vision.
“Solve customer’s problems and make sure that the customer is representative of a large market and then you will have a pretty good formula”
7. The pitch deck needs to be all about the problem
Part of the journey whenever you are trying to sell your startup idea to people is to be able to use a quality pitch deck. Given the number of times Melanie had to pitch to investors, I asked her what advice she would give other startups when putting together a pitch deck.
Melanie explained to me that before Canva’s first investment, they had revised their pitch deck over one hundred times. The feedback that Melanie got consistently was that investors didn’t know much about the design landscape so this had to be addressed in the deck.
It’s a good idea to address anything that is tricky or confusing about your product right up front. When you are putting together your pitch deck, you need to start from a macro perspective and begin with the problem you are solving first. You need to be spending 80% of the deck on the problem and only 20% on the solution.
Your pitch deck needs to explain to investors the huge opportunity that exists, the large market for your solution and the macro landscape that exists. Instead of telling your solution right up front, focus on demonstrating its importance first. The other key point is to make sure your solution is a problem that people care about and want to be solved.
“Anyone can have a solution but if no one cares about it, unfortunately, you are not going to have a very big company”
8. Understand the risk appetite of the person your pitching
One of the most powerful lessons Melanie taught me is around knowing when to pitch to certain investors based on your startup’s life cycle. Different investors have different risk appetites so as your startup hits each milestone, different investors barriers to risk are removed.
If we look at Canva’s life cycle, they started with a strong vision, then they had a skilled team, then they had a great product, then they had a highly engaged community, then they had very strong performance graphs and now they have a strong monetisation model (thanks to Canva for work).
As Canva hit each milestone, Melanie said that different types of investors wanted to be a part of their vision. In the early stages, the only box that Canva ticked was a great vision and so this didn’t meet many investors risk appetite, although it did interest a few.
The Canva pitch to investors was rejected many times but what Melanie realised was that when investors said no, what the investor was really saying was that the current phase of their startup didn’t meet his or hers individual risk appetite.
“The rejection is often not because of the reasons you think they are rejecting you”
9. Regular contact after the pitch is crucial
I think that anyone can get in contact with an influential person at least once, but to keep in touch with someone who is high profile, takes real skill. When I presented this challenge to Melanie, she described how she was able to overcome this.
She explained to me that after the initial contact with an influential person, she would tell them what the next milestone was that Canva was going to achieve, and then when they achieved it, she would let them know.
In-between key milestones she would send influential people a copy of any Canva press to help keep her startup front of mind. The key Melanie says is that when you tell someone you are going to do something then just do it.
If you continue to do what you say you’re going to do, and you’re persistent, it will build up your credibility over time with the influential person. The other key trick is to send updates of your startup every few months – don’t overdo it with weekly updates.
Favourite Book – Designing the obvious (product design book) – Robert Jr Hoekman
Best Venture Capital Advice – The Venture Hacks Bible (Melanie used this PDF to learn what was involved in raising capital)
Favourite Quote – “Happiness is when what you think, what you say, and what you do are in harmony” – Gandhi
Favourite Startup Tool – UserTesting.com (understand how users are using your site)
If you have any of your own startup tips then please comment below and make sure you visit Melanie’s latest creation Canva For Work here.
8 Key Factors That Discourage Investors From Putting Money Into Your Startup
Today’s ideas are tomorrow’s winning businesses. Ideas executed brilliantly and with proper investment bring your business success. That is how the world of business got the likes of Apple, Google, McDonald’s, Amazon and so on.
But why in spite of the brilliant and promising ideas at the core of their business, many startups fail to attract investors? Why do investors hesitate to put their money into some startups? Well, investors have reasons and only by deciphering these reasons we could get hold of some deterrent factors that hold them back.
Let us explain some of the vital factors that prevent investors from putting their money in the startups below:
1. Inefficiency or Absence of Leadership Qualities
Inefficiency is the most significant deterrent factor for pulling the success of most startups. This can also be referred to as the lack of leadership qualities. Investors always want to make sure that they don’t lose their money through a company that has an extraordinary business model but no efficient and skilled business leader to make it successful. When fetching investment from investors, you need to offer a clear prospect and detailed plan of how you are going to achieve the goals.
2. Lack of Trustworthiness
An investor puts his money on a venture purely on the basis of the credibility and trustworthiness of the business. This is why besides having a sound business plan with clear objectives, you need to establish the integrity in terms of the security of the investor’s money and how the fund is going to be invested to give results as per business plan.
If an investor has a feeling that the startup may not have enough customers to fulfil its financial liabilities or if it finds that the business is hiding some information, it may further push the trust of the investors down. Total transparency and establishing the faith of the business brand are crucial for finding investors in favor.
3. Lacking Experience in Business Management
You have a great business idea backed up by a sound business plan and solid trustworthiness based on your background, but you have zero experience in managing a business. This is a serious reason for an investor to deny making any investment in your business. An investor cannot put his money just to allow you trying and learning your management skills the harder and riskier way. Uncertainty is the single biggest turn-off factor for any investor and lack of managerial experience is synonymous to that.
4. Business Model is Not Sound Enough
You have a business idea, some efficient, competent and experienced professionals as leaders, the great stamp of trust and pretty much everything that make a company look promising. But what about your business strategy and business model? Are they sound enough to take on the market competition and challenges for business growth? Well, this is what investors are most interested in.
In most cases, a business model is what makes an investor think twice and even take a backward step from investing in a startup. After all, your business model and strategy will decide how your business and products will be able to withstand competition and become victorious.
5. Taking Investors for Granted
This is a big mistake on the part of many startups. Just by becoming confident in the potential and the soundness of the business model and prospect, a business can consider getting investors on board requires just a little effort and time. But in reality, getting investors on board is the toughest thing a business can think of.
This is why without proper and meticulous preparation, it would be foolish to approach investors for your business. Most investors receive hundreds of such emails and a similar number of approaches through other means and they coldly just let them pass. This is why you need to send them very detailed proposals backed by strong recommendations and referrals.
6. Targeting the Wrong Investor
Every business has a target customer base, right? Not all customers are interested in every product in the market. Similarly, not all investors are interested in your business. Investors based on their prior experience and industry exposure, put their money in businesses that they know like their own palm of their hand.
So, targeting an investor who has no interest in your business will only drain your energy and bring you unnecessary frustration. When you are seeking investors for your software startup, don’t approach someone investing in real estate business.
7. Non-Realistic Proposal for Funds
Investors normally come with huge experience of your industry and so they have a clear idea about the fund requirements for your business startup. Moreover, they already have invested in other ventures or have gone through many proposals. Naturally, they have every bit of estimate already in their mind. So, any proposal claiming a lofty and unrealistic amount will only face rejection.
This is why it would be wise to become meticulous about your estimation of the required fund and calculation of various cost factors. Have meticulous details about every facet of investment backed up by breakup of the costs. Only when you can convince them with correct estimation, investors can take interest in discussing the matter further.
8. Make Sure Your Product Solves a Customer Problem
Will any investor put money in building a simple calendar app now? No, simply because such an app idea has no value for the end users now. Will an investor put money in a product that has already been outdated and has no use? No, no investor has to even go through such a proposal for dismissing them.
Well, to fetch investment, your product must be thoroughly customer-centric. It not only has to solve a problem but has to deliver some competitive value in comparison to similar products in the market.
Obviously, finding an investor for a new business is not an easy task, considering the huge competition that businesses need to deal with. But, if your business idea is unique and you fill all those requirements correctly as mentioned above, finding investors may not be as tough as it sounds.
5 Must Have Branding Tools for Your Startup
Your brand is more than just the colors on your website. And for startups, it’s important to create a strong and memorable brand from the beginning if you want to stand out from the competition, scale your company, and find your ideal customers faster.
Here are 5 simple tools that will help your company avoid branding mistakes, take charge of your visual identity, and set a solid foundation for future growth:
1. Graphic Design Software
The word “design” doesn’t have to be overwhelming. Before deciding on your startup’s logo, colors, designs, and overall tone, consider working with a brand strategist who can translate the core ingredients of your startup into a visual identity that speaks to your target market.
Brand strategists have expertise in the psychology of colors, shapes, textures, and words, and they will work with you to make sure that your branding appeals to your target audience. Once you have those basics of your brand established, there are several tools that can help your company refresh and maintain your visual identity.
The absolute best graphic design tool for non-designers is Canva. While the free version has a lot of functionality, the paid plans offer more customization such as the ability to import your exact brand fonts and colors.
But if your company handles all of your design in-house, you will need something more advanced than Canva. In that situation, I would recommend Adobe Creative Cloud to startups who work on their designs in-house, as it includes top-notch design software like Photoshop, Illustrator, Lightroom, InDesign, and more.
“Branding is what people say about you when you are not in the room – Jeff Bezos
2. Visuals & Creative Imagery
Have you ever wondered where your competitors get those beautiful branded photographs that end up on their website? While it’s possible that they worked with a photographer, it’s also likely that much of their imagery comes from stock photos.
Here are my recommendations on the exact places to purchase stock imagery to improve your company’s branding:
- Creative Market – A treasure trove of quality visual imagery where you can buy anything from stock photos, to branding mockups, to social media templates (Facebook cover photo, anyone?), to custom fonts… the options are nearly endless.
- Adobe Stock – Beloved by designers, and the platform offers tiered pricing plans based on your image needs and download quantity.
- Pixels – If you’re on a tight budget and just need to grab an image or two for a blog post, you may be able to find what you need on Pixels – which is great because all of the photos and videos on Pixels are free!
3. Social Media Scheduler
You’re a leader. You’re an entrepreneur. Your staff, board, funders, and admirers depend on you to make big decisions, lead the ship, and plot the vision towards your company’s future. You don’t have time to stare at a blank screen every day wondering what to post on Facebook.
By using a social media scheduling tool, you can sit down for a few hours, schedule batches of content, and schedule the dates and times when it will post to your accounts over the next couple of months. Then, once the content is posted, you only need to worry about responding to comments and engaging with your customers. 21st century efficiency at its finest.
Popular social media schedulers include Buffer and Hootsuite, both of which include free and paid plans. Not sure what exactly to post? Check out these social media ideas from influential businesses. And if the idea of writing and planning months of content still overwhelms you, our next tool will help you stay organized and on-brand.
4. Editorial Calendar
When it comes to your content, it’s time to step it up a notch and start thinking like a media outlet. Every piece of content that you put out as a company, whether it’s an e-mail blast, blog post, social media post, podcast, or video, needs to be aligned with your brand.
Each major magazine maintains an editorial calendar which outlines the overarching theme for each of the upcoming 12+ months. By establishing a monthly content theme in advance, they create a framework to generate and organize their ideas.
Consider creating an internal editorial calendar that will guide your startup’s content over the next 6-12 months. The software tool you use to maintain your editorial calendar isn’t that important — I like to use Trello, but you can also create a simple numbered list in Google Docs or Microsoft Excel. You may be surprised at how quickly the creative juices flow once you have an editorial calendar in place.
“Design is the silent ambassador of your brand.” – Paul Rand
5. In-Person Networking
Offline efforts count towards your branding too! And if you run your entire startup from behind your laptop screen, you miss out on ample opportunities to build your business offline and gain local referral partners.
If you’re new to in-person networking, start by visiting Meetup.com or Eventbrite.com where you can browse for events in your area. Think outside the box when it comes to selecting events to attend. For example: If you’re a chiropractor, it makes sense to attend local holistic health meetups. But you could also attend a travel event and meet digital nomads who don’t yet realize that a chiropractor can help them recover after long plane rides.
Remember that you’re not at the networking event to make instant sales, you’re looking for referral partners and connections. Don’t be the person who tries to shove your sales pitch down everyone’s throat upon meeting them.
As you can see, there are many simple online and offline resources that can help you spruce up your branding, reach new customers, and pique the interest of your target market. If you take branding one step at a time and start with the tools above, you will be well on your way to creating a brand that your customers will cherish and remember.
Have you used any of these branding tools before? Are there any additional tools that have helped your startup’s branding shine? Share your thoughts below!
5 Ways to Deal With Startup Uncertainty
Starting your own company may sound like a dream come true in your mind, on social media, and to all the people looking on in envy from their office jobs. But when the fantasy fades, you realize how much uncertainty you now have in your life. The inherent risk in any startup is that you are trading the certainty of a normal job for real growth and freedom. What people get from office jobs is much more than a steady pay check and free coffee. It’s a sense of certainty that their lives, work, and finances are in order.
You will have to give up certainty to fully take on the risks of this lifestyle. It will be roller-coaster and something you need to prepare for. Logically, it’s easy to know that. But emotionally, there are so many ups and downs in an entrepreneur’s life. Stress, frustration, and decreased motivation are inevitable.
Here are 5 ways you can deal with startup uncertainty:
1. Stick to a morning routine
There’s many ways to start a morning routine. What’s important is to have a stable, predictable routine. This centers your mind and gives you some order to your day. You manage your business and you can do whatever you want. No boss and no one telling you what to do, it can be mix of productive to outright messy days. By giving yourself some stability, you start the day off in a predictable way so that you can jump into work each day.
It’s as easy as taking your dog to the park, having a cup of coffee, and listening to a motivating audiobook for 20 minutes. You may need meditation to get into the state. Whatever it is that you need to get from a sleepy/hungover mindset to that of taking on the day.
“If you win the morning, you win the day.” – Tim Ferriss
2. Make time for high performance books
Speaking of audiobooks, everyone – especially entrepreneurs, need motivation. Get a few motivating books from other business leaders. This will do incredible things for your mindset and the way you think. Most of them help by keeping you excited for bigger goals. Look for classics from Jim Rohn and Tony Robbins. Or the newer motivational personalities like David Goggins and Rachel Hollis. You’ll be surprised at how much hearing someone’s hardships on their journey will help you on your own.
It’s easy to get a packed calendar working an office job. Everyone else in the company seems to be demanding your time for one meeting or another. Pointless meetings are even the reason some people leave their jobs in the first place. The issue with having your own startup is that while the pointless meetings are gone, so too is any semblance of structure from a filled up calendar.
Spend one evening and fill the upcoming week as much as possible. I recommend Sunday afternoons to think about your goals. Plan big tasks every day throughout the week. That way you always know what you should be working on and stay on track.
4. Hit the gym
This one is actually part of my morning routine and it’s benefits can’t be overstated. Exercise helps fight off anxiety and stress. There’s no better way to funnel your business frustrations more than into the weights. By the time you’re done, your body and mind will be much more relaxed. A necessity when it comes to the tension of being an entrepreneur. Whether that’s staring at your laptop or making sales calls.
“Daily exercise is an insurance policy for future illness.” – Robin Sharma
5. Be grateful
Gratitude was one of the feel good things that I always used to skip whenever it was mentioned. I wanted cold, calculated strategy or tools I could use to build a business as fast as possible. Many brilliant minds in not only self help but also in business, speak about the need for gratitude.
Here’s why it helps me when the business is going through growing pains or everything seems like it is going wrong. I get filled with doubt and uncertainty and gratitude is the quickest way to relief.
Yes, starting your own business is a massive effort, but there is always some job out there. You decided to launch something of your own because you don’t want a baseline existence. You want to grow and build with the freedom someone can only give themselves.
That alone is enough to be grateful. But if you need more, how about that most people are too scared to do what you’re doing. Or that you are taking the time to believe in yourself and live a life of taking chances.
That speaks to your character and self-worth. Much more than the life of quiet misery so many people in the world allow to decide their entire lifestyle. Be grateful you have this opportunity and make the most of it.
The Best Side Hustle You Can Start Today In Just 15 Minutes
The best side hustle you can start in 15 minutes is blogging.
It can be writing, making videos or speaking about topics you love through a regular podcast show. All of these acts are a form of blogging.
15 minutes is not long
That’s why blogging is a good choice.
A video that’s less than 15 minutes is easy to make and will work well.
A short piece of writing can be written in under 15 minutes.
A 10-minute audio conversation on one single question will give people heaps of value and detail in one particular area.
Starting is not where the power lies. Doing this side hustle every single day is how you get what you’re really looking for.
Many successful people are doing this
Whether it’s Hollywood actors like Will Smith or writers like Tim Ferriss or musicians like Ariana Grande — everyone is doing it.
Why is everyone doing the side hustle of blogging?
- It’s how we connect with each other.
- It actually works.
- It’s a way to create an audience which can become a business.
I didn’t invent this side hustle
I just tried it for myself and saw how powerful it was.
It got me:
- New clients for my 9–5
- A new 4 day a week day job
- Clients to coach via Skype
- Features in major publications like CNBC
- The opportunity to meet amazing human beings like LinkedIn influencer Michael Chapman
The side hustle of blogging gave me meaning for my life
Before this side hustle, I was washed up, uninspired, negative and pissed off with the world.
Spending 15 minutes to start the habit of blogging got me out of my head. It forced me to search all over the internet and find things to talk about. Pretty soon I was spending 2+ hours a night researching personal development and figuring out what I wanted to blog about.
Blogging led me to want to help the homeless, share my very private battle with mental illness, come to grips with my startup failures and share the lessons, and even overcome my fear of public speaking in the process.
Now I have a meaning for my life thanks to the side hustle of blogging. I reckon it can do the same to help you grow and get you to the next level. You can blog about whatever you want and then watch it grow from there.
Why is blogging the best side hustle?
It’s how you be creative.
It’s how you express yourself.
It’s how you grow.
It’s how you attract the right people into your life.
There are many side hustles you could choose. Blogging is one of many. In my opinion and based on my experience, it’s the best. There are so many avenues you can go down.
“Attracting what you want in your life has a lot to do with what you’re putting out into the world”
Blogging is a fantastic way to put out more of what’s important to you, into the world. Like a magnet, blogging attracts more of what you put out into your life.
Oh and don’t forget the income
Investing, giving back and making an income are all possible through blogging too. Part of my monthly income comes from blogging.
This allows me to back causes that help those in need, invest in stocks that provide me with a passive income and have money to spend on the occasional treat such as dinner dates and drinks with my co-workers.
That money comes from:
- Ghostwriting for other people
- Posting on Medium.com
- Coaching clients via Skype
- Consulting to businesses on how they can create content that aligns with their brand
There aren’t too many side hustles that can do that for you
Seriously, blogging is a game-changer. It’s a habit you can start in 15 minutes and repeat daily without much effort. Choose your poison — writing, video or audio — and then get started.
Do it for around twelve months and then send me an email with what you experience. I already know, having challenged lots of people already to start this side hustle, that it will work. It just requires patience and the habit of doing it daily.
15 minutes to start today.
And then 15 minutes every day for the rest of your life.
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