A Different Kind of Brand Guide For Startups
Having advised early-stage startups at the UC Berkeley SkyDeck and worked with mid-stage series C round funded companies, I’ve seen a wide range of business models with amazing ideas. Some take off others do not. The challenges are many and they really test your focus and commitment. Here are some thoughts that might be helpful for all companies in these dynamic times.
Why branding, marketing, and flexibility are critical.
Startups give you their pitch: they define their breakthrough technology and the reason they will take over a market or even invent one; they persuade some folks to provide seed money; and they move forward. What now? The real challenge at this stage is customers, growth, and the pivot. So, how do you shape the ongoing brand story that keeps it alive?
The persuasive power of the pitch deck.
How you present your story — yes, story — is what a good pitch deck is. It shapes the view of a problem that the funders, the partners, and the team care about. This is where everyone buys into the facts and the current problem, and ultimately the cost. Every problem has a cost, whether it’s trying to get from here to there without a car and missing that meeting or flight (think Uber) or trying to coordinate multiple remote teams to get a project done on time (think Slack). All of these problems shape and define the strategy you present to solve them. The detail you provide becomes more important the more you grow and who you’re presenting to — the ask.
Tell stories that fit the listening of the funder.
When you focus on key funders, know what matters to them, know what their knowledge base and experience is. You must strike both a realistic connection to the problem and an emotional connection to them from their point of listening. It’s not just numbers and logic. The story of the problem and the solution must fit their goals in funding. Be very clear about this as you engage with each funder.
Be ready to pivot.
The pivot is the next phase of growth when the company discovers they have to revisit their market, change their target, expand the target customer, or give their next round of funders the reason that they want to hear for the funding they will provide. When Airbnb was attempting to expand in their early days their success during the 2008 Democratic convention in Denver did not impress the funders. The fact that they did branded cornflakes boxes with the image of Obama and Senator John McCain and completely sold out did impress the funders and that’s what they encouraged them to do. However, they were not deterred from their business model and continued to focus on the short-term rental market.
Know your product core.
This may mean expertise in specific technologies or understanding a market and having a unique solution. This is essential since you must know what your value is in the market. This allows you to shift, grow and find new opportunities to enhance these strengths.
Be clear about who your customers are (and how they may change).
This really defines who you speak to and how you speak to them and gives you some foundation to work from. But this can change and that flexibility is essential in both branding and storytelling about the company and to whom you’re selling. You may be developing home diagnostics tools that have never before been used by consumers, however you find that initial trails require you to focus on ER’s and medical techs in the field. Customers and brands have to shift as they grow, especially in radically new market categories.
Know your brand is shaped by customers.
You may have a great name, a great brand for what you perceive the company to be but the bottom line is you’re all about what the customers make you. The key customers that are part of your growth can totally shift the narrative of your growing company. It may be you’re creating an AI app to track behavior and performance and it suddenly becomes the key tool for stock market day traders to improve their performance. Your brand and name may require a shift to meet this market.
You may be completely wrong but with the right team.
You may have great technology with great people but you may be completely wrong in your concept for the business problems you are solving. The founders of NextDoor had originally come together with a concept related to sports teams and followers. It went nowhere and they told their funders they were willing to send the money back. The funder insisted they keep it and gave them 4 months to come up with a “good idea”. This pressure and intense focus pushed them to see a gap in the social media market: trusted neighbors. Their invention of a localized social media network became a total hit and they’re now nationwide in the US and in 14 other countries.
What you don’t know can kill you.
This is the ultimate issue. What you don’t know can kill you. How do you respond to dramatic shifts in the market? Do you have a “what if?” strategy if everything about your market changes? Remember that failing is only about choosing not to shift how and what your startup is creating. Be clear that behind every door there are unknowns you must plan for and deal with.