2019

STARTUPS MAGAZINE The Survival Guide

St a r t u p s G U I D E
I V A L
V
S U R
A

GUIDE
REDUCING THE STARTUP
T E N ST E P S
FAILURE RATE

1
 CONCEPT 6

CO N TE N TS
STARTUP S SURVIVAL GUIDE

RESEARCH 14

EVALUATION 24

DESIGN 34

PROTOTYPING 44

FUNDING 54

MARKETING 64

PRODUCTION 74

DISTRIBUTION 84

SUPPORT 94

Publisher:
STARTU P S MAGA Z I N E
Steve Regnier Com i ce P l a ce, Wo o d fa lls Fa rm
G ravel l y Ways
Editor:
L a ddi n g ford
Daisy Stapley-Bunten Ken t
UK Sales Manager: En g l a n d
M E18 6 DA
Ben Price
U n i ted Ki n g dom
t . + 4 4 (0 ) 1 6 2 2 8 7 1 944

hello@startupsmagazine.co.uk
www.startupsmagazine.co.uk
twitter.com/thestartupsmag
instagram.com/startupsmagazine

2 © 2019 Startups Magazine

 At Digi-Key we work with thousands of startups every year. Some

STARTUPS MAGAZINE X DIGI-KEY

A L E T TE R FR O M D IG I-K EY
make it and unfortunately some don't. Being engineering driven
we tried to find patterns of commonality between successful
startups and reached out to the experts at Startups Magazine
to help compile, design and create this first ever Startup Survival
Guide. In it you will find tools, resources and first-hand accounts
from successful startups to help guide your journey from ideation
through production and beyond.

Digi-Key was founded and is still owned by a Maker Professional.

Even though we stock a wider selection of electronic components
than any other distributor and we sell products to startups in over
100 countries we still retain that entrepreneurial spirit and we are
committed to making every startup a success. No one has more
tools and resources dedicated to help you take your startup to
wherever you want to go.

This guide follows the same 'Design Roadmap' that we have

created on our startup's website called Maker.io. When you visit
www.maker.io you will find an overview of every stage along
that journey: Concept/Ideation, Research, Evaluation, Design,
Prototyping, Funding, Marketing, Production, Distribution and
Support.

On Maker.io you will also find a Roadmap Dashboard designed

to help you with tasks, resources and a checklist for each of
these stages. This is just one tool that Digi-Key has created to
help startups become successful. The rest of this section will be
dedicated to some of the Dashboard as well as other tools and
resources available from Digi-Key.

Please let us know if there are other tools you would like to
see Digi-Key create as well as provide any feedback to help us
improve the value of this guide in future iterations. You can
reach us at support@maker.io and remember, Digi-Key support
is always available 24 hours a day, 7 days a week and 365 days a
year at www.digikey.com.

Thanks so much and we can't wait to see your product in

production!

David Sandys

Director, Business Ecosystem

Development, Digi-Key

3
STARTUP S SURVIVAL GUIDE

NINETY PERCENT
O F S TA R T U P S FA I L . . .

4
 ...BE IN THE
TEN PERCENT

5
STARTUP S SURVIVAL GUIDE

01
CONCEPT

Perhaps your great idea occurred to you in a

dream, came to you in the shower, or sprung
up as a result of a persistent problem.

Either way, you've got a concept worth

exploring.

6 digikey.com
 T H OUG H T B ECO ME S ACTIO N

maker.io
CO N CE PT
PROVE YOUR CONCEPT

Prove your concept

By Alex Lynn, Startups Magazine

Before you can do anything so an important part of the be viable as a business concept,
else, you need to have an idea. concept process, is to work to talking to people can also be an
Concepts can come in a variety really understand the problem, invaluable way to gain a stronger
of guises, shapes and sizes and rigorously define it, and then find understanding of the problem
are the starting point for all the best way to solve it. you are trying to solve. By doing
startups. But the concept of a this you can not only define the
First and foremost, it is important
startup is not as simple as just problem more closely, but also
that there is a problem that
having your eureka moment, that start to build an idea of your
needs solving, which sounds
moment needs to be followed future market.
obvious; however, a common
up with thorough research and
trap that startups fall into is What is also likely to emerge
brainstorming to refine your
building an awesome product from talking to people who
concept into a viable foundation
without checking whether it experience the issue your
for a business.
actually solves a problem that business is aiming to solve, are
If there is something wrong with people want fixed. the most common factors. It is
your concept, then you are going likely that everyone will have a
Many founders are inspired to
to encounter major problems slightly different experience, but
begin when they encounter the
further down the line, when it is within that, there will be a few
problem themselves, having their
much harder to make changes to issues that almost everyone has
eyes opened to a problem that
the very core of your business. encountered. These common
needs fixing first-hand. But it is
So take your time, and make factors will almost certainly be
important to establish whether
sure that your concept is rock the root of the problem, and
that same problem affects a large
solid before attempting to build after establishing this, you can
enough group of people for a
anything on top of it. really start to figure out the best
solution to be a viable business
way to solve it.
Eventually, having proof of foundation. A simple way to
concept will become integral to begin to find this out is by asking You will also need to think about
your startup's ability to grow. people if they have encountered why it is that this problem has
Future investors will want to see something similar. not been solved before, as this
a strong proof of concept before could warn you about potential
‘Two heads are better than one'
they commit any money to your obstacles further down the road.
is a common saying, and one
startup, and if there is a flaw in Have people tried before and
that holds true when talking
the concept, then this stage will failed? If so, why did they fail?
about business concepts. As
become very difficult. Is this a new problem? What
well as being useful for deciding
happened recently to cause it?
The best concepts grow from whether or not enough people
8 wanting to solve a problem, are affected by the issue for it to
Is it more complicated than it
 9
seems? Or has it simply failed to positive is often vital to keeping problem. With this shortlist, it
be properly identified before? the creative ball rolling. is the time to assess the ideas,
until you are certain which one
When thinking about these There are lots of different
will be the most effective to
questions, searching for other ways to brainstorm and all
both solve the problem, and
concepts that have tried, and of them can produce results.
function as a business.
failed, to rectify this problem The most well-known example
can be a valuable guide of ‘what of brainstorming is likely the When assessing, it is a good
not to do'. Understanding the infamous ‘mind-map' that most idea to look for outside opinions,
problem, is what remains at the people will remember from whether from industry experts,
heart of all of these questions. school. It is a classic because it surveys, or friends and family.
works, so if you find yourself in a They may well come up with
The next stage in nailing down
bit of a concept-rut, try dusting something you have not thought
your concept is brainstorming
off a large piece of paper and of before which makes one idea
until you come up with a
mapping out your ideas. more viable than another.
viable solution. This is another
stage where working alone is Other great ways to brainstorm At the end of this process,
difficult. It is far more effective include looking at the problem you should have a perfectly
to brainstorm in a group, as it is from a different perspective, understood problem and a viable
much easier to bounce ideas off imagining what you might solution to it, which means you
of other people. Brainstorming prioritise about the problem are ready to start your research.
alone can quickly leave you if your circumstances were
When you first get struck by
stagnated and your ideas stale. different, examining similar
that initial idea, it is easy to let
Brainstorming also gives you the successfully solved problems,
the excitement blind you to
chance to get creative with your and even attempting to
everything else and prevent
ideas. There is no harm in testing reverse engineer the problem.
you from taking it slowly and
out an idea in the brainstorming Hopefully, after some successful
tackling your concept properly.
STA RTUP S SURVIVA L G U IDE

stage, even if it doesn't end up as brainstorming sessions, you will

When refining your concept,
a part of your final concept. be able to compile a list of ideas,
try to remember these wise
which you can then review with
During the brainstorming process, words from Albert Einstein, to
more scrutiny, until you have
remember that there are no bad stop yourself from rushing the
a shortlist of ideas that you
ideas, keeping the environment foundations of your startup:
are confident would solve the

"If I had an hour to solve a problem I'd spend fifty-five minutes thinking
about the problem and five minutes thinking about solutions."
CO N CE PT
SOLVE A REAL WORLD PROBLEM Solve a real
world problem
By Lanna Cooper, Startups Magazine

Smart underwear from LifeSense Group empowers In 2017, LifeSense Group received an investment
men and women, and puts an end to suffering in of $3m from a Danish entrepreneur, taking the
silence. company’s investment total to $5m since van Zanten's
and Pop's idea was born four years earlier.
Did you know that one in three women will experience
urinary incontinence at some point in their life? The smart underwear works in conjunction with a
Although this a common health issue, it is still viewed wearable sensor and a tracking app that creates a
as taboo subject. Women often feel too embarrassed tailored exercise programme designed to eliminate
to talk about their problem and can even suffer with future leaks. Menopause, childbirth and weight gain
it for up to 25 years before they seek help. This is a can often result in weakening of the pelvic floor
challenge that can be met with a product called Carin, muscles. This can cause uncomfortable situations by
which is a piece of smart underwear that absorbs simply sneezing or coughing.
without mess thanks to the smart textile, Bluetooth
Carin’s Bluetooth sensor sits comfortably and
sensor and a tailored exercise programme.
discreetly inside the underwear to measure the
Julia van Zanten (pictured above), co-founder and leakage and collect data. The sensor also allows users
CCO of LifeSense Group and a social designer with to track their progress in real time without changing
a background in textile design, completed her studies their active lifestyle. This product differentiates itself
at Central St. Martins College of Art and Design from its competitors by its non-intrusive design.
(London, 2010) and Social Design at Design Academy
van Zanten explained how they really wanted the smart
Eindhoven (2014). She was working in interior design
textiles to look like normal underwear: "The intention
when she realised she wanted to do something more
was to make the underwear look as normal as possible
meaningful. It was after spending a summer with her
so that it fits into daily life. We want it to help women
grandparents that she discovered her grandfather
feel confident and empowered as we understand it is
was suffering with urine loss. After realising that he
an embarrassing problem to have to deal with.”
could no longer do the things he enjoyed because he
felt too ashamed to use a nappy, she had her lightbulb The underwear can be put in the washing machine
moment. As a designer, she asked herself: "How can on a delicate wash alongside the rest of the laundry.
I come up with a better solution? Why are these Carin underwear is also available in two styles.
products designed in a way that make people feel bad
about their body?” The app allows users to log in and complete a
measuring programme once a week to track their
It was later on that van Zanten met her co-founder, progress. van Zanten said: "The app helps the users
Valer Pop, now the CEO of LifeSense Group, who to remain motivated throughout the whole process.”
completed his PhD at Philips and is now focussing on
new technology sales and business development. The Within the app there are also tailored pelvic floor
two realised that they shared a very similar goal and exercises. The training programme is designed for
decided to join forces in 2015. up to an eight-week cycle but van Zanten explained
how women often get cured sooner than that. The
LifeSense began its journey in 2012 when it received app encourages users to exercise for ten minutes
€1m seed funding. Throughout 2012-2015, Carin per day to strengthen and gain control in their
was developed by involving more than 100 different pelvic floor muscles. The online coach demonstrates
women on its advisory board. In 2016, Carin was CE the exercises on a smartphone and tablet so that
and FDA Class II approved and established a global users can exercise anywhere at any time. The app
client base from the company’s offices in Eindhoven, is available for download on Android and IOS. The
the Netherlands and Tokyo, Japan. Then in 2015, focus for Carin was to show how well design and
LifeSense Group was founded as a spin-off of the technology can work together, as well as making
10 R&D Institute at the Holst Center in the Netherlands. women feel empowered and confident again.
From Maker to Market: 01
The Roadmap Dashboard

The Roadmap Dashboard is a step-by-step guide to take

your project from concept to market! 11
We've conveniently provided resources and tools needed to
handle every twist and turn you'll encounter on your road to
success.
The dashboard is available to you after a project has been
created. The navigation on your left side is used to view each
step.
Simply click on the area you wish to work on and dive right
in!
The progress bar mirrors your actions in the checklist, it
will move forward or backward as items are checked and
unchecked.
❶ ❶Head over to the maker.io website
❷ ❷Click 'Start a Project'
❸ ❸Victory is yours!

Start a Project

maker.io
CO N CE PT
FROM MAKER TO MARKET

From maker to market

by Alex Lynn, Startups Magazine

How 'Ladyada', Founder of

Adafruit developed Circuit
Playground
Limor Fried, known as Ladyada, is many ways, it is the most important, that have already been made, when
an American electrical engineer as the foundation of your project. you can instead be learning and
and owner of the company Adafruit growing from the example.
Inspiration for a concept can be
Industries. She has been a force
found anywhere. Perhaps you Sometimes, concept takes a long
in open source hardware and was
keep being foiled in your work by a time to fully develop. For Ladyada,
named the most influential woman in
glaring gap in the market, and finally Circuit Playground was many years
technology in 2011 by Fast Company.
decide to set out to fix it, perhaps it in the making before becoming
In an informative video series, is something you have had on the fully realised. It took many years
engineer Ladyada (pictured opposite) backburner for a while, or perhaps for the concept to become refined
talked about the concept stage of someone else brings up a problem enough to be successfully turned
the product development process, that needs fixing, and an initial into a project. Developing a concept
and has offered some key pieces idea leaps to mind. However your involves walking down many different
of advice, using her project ‘Circuit concept begins, the most important paths, and finding another one if the
Playground' as a running example. questions to ask yourself are; what one you tried turns out not to be
is the goal, and what is the purpose? right for your project. There is no
The initial phase of creating any
one way to do something, and taking
product, is concept. Before you can When you've answered those two
your time with a concept will always
do anything else, you need to know vital questions, you can move on to
be more effective than rushing the
what it is you want to achieve. developing your idea. It is also worth
foundations of your project.
noting that the more thoroughly you
This is not just having an idea of a
understand the problem and the In some ways, concept never stops.
product, but also knowing exactly
more tightly you define your goal, Throughout the process, you will be
what your goals for that product are.
then the more structured the rest of refining and adapting your concept
Having the idea for a cool gadget is
the process will be. to better fit your goals and the
all well and good, but what is that
ever-shifting market, and even after
gadget hoping to accomplish? Why Ladyada also explains that another
launch, concept will continue, as
do people need it? Why will people way of developing your concept, is
you work to improve and update
buy it? Is there a demand for it? All taking the time to find out what other
your product.
are very important questions to ask people have tried, why they failed,
during the concept phase. whether they had anything that was Be flexible, keep in mind your goal,
working, and move on from there. and don't be afraid to adapt if it
12 Concept also tends to be the stage
that gets discussed the least, when in
There is no need to make mistakes changes.
13
STARTUP S SURVIVAL GUIDE

02
RESEARCH

While you've probably done a bit of Googling,

now is the time to get serious about
researching your idea. You'll need to review
platforms, evaluate price points, and perform
a competitive analysis. Now might also be
a great time to look into existing intellectual
property.

14 digikey.com
 D O YO UR H O MEWO R K

maker.io
R E SE AR CH
GET DOWN TO BUSINESS Get down to business
By Lanna Cooper, Startups Magazine

So you've probably done a bit of Googling, but now who created an app that helps users find fellow
it's time to get down to business. Research should festival lovers who share the same interests, shared
never be overlooked by any business, big or small. her top tips for startups at a crossroads.
One of the most important things you can do to start
1. Get customer feedback on your idea/concept
off on the right foot is conduct thorough research.
very early on and continue to do so, it's important
According to studies, some of the main reasons you are listening to your customer needs.
why startups fail are due to the lack of planning, the
2. Be clear on what problem you are trying to solve!
absence of supplier knowledge, and various issues
with pricing. The chances of these occurring can be 3. Understand who your competitors are and how
reduced, if not removed, with the right research. your USP differs to theirs.

However, conducting market research is a lot harder 4. Use prototypes to bring your idea to life. This
than it seems. With the overwhelming amount of makes it easy to share with potential customers
information on the internet nowadays, it can be a to gain valuable feedback.
challenge to sift through what's relevant for growing
your startup. 5. Take a Minimum Viable Product (MVP) approach,
don't spend ages perfecting your idea, get it
W H AT R E A L LY I S R E S E A R C H ? out to the market and iterate based on user
Research helps businesses understand their feedback.
marketplace from the start, enabling them to create
WHAT CAN YOU EXPECT?
strategies that will allow the business to grow. The
main forms of research are primary and secondary – Well, there will be far less stress and organisational
combining the two creates reliable results that can be problems. The results you gain from your research will
used more than once. allow your business to set achievable goals and reach
out to the best audience possible, and an audience
Primary research is new research, carried out to that will actually want your product/service.
answer specific issues or questions. It can involve
questionnaires, surveys or interviews with individuals By doing your research before investing time and
or small groups. Secondary research makes use of money into your business, you will be assured that
information previously researched for other purposes your service is correctly priced and will reach out to
and publicly available. the best market possible.
WHAT RESEARCH METHOD SHOULD
WHERE TO BEGIN?
I USE?
It can be difficult for startup businesses to get their
There are many different avenues you could go down,
foot in the door, particularly when very little research
but let's start with the basics.
has been carried out. Startups need to know who
their target audience is so that they can tailor their Quantitative surveys – these are one of the more
product to suit them. common research methods. A quantitative survey
allows you to quantify data and generalise results from
16 Clara Toombs, CEO and Co-founder of Apptimisation,
a sample to the population of interest, and measure
THE TOP MARKET RESEARCH
MISTAKES
- NOT TO MAKE

the incidence of various views and opinions in a startups make when conducting market research.
17
chosen sample. It is usually a large number of cases
1. Not knowing what you're looking for. It is
representing the population of interest. It features
important you know what information you need
structured techniques such as online questionnaires,
before you even begin so that you don't waste
on-street or telephone interviews.
time. Gather a list of questions, such as "What are
Focus groups – these can be a more refined approach the specific needs of my customers?" and "How
to research. Focus groups are usually a small group much would my customers be willing to spend?"
of people that fit the profile of your target audience.
2. Overspending. Performing market research
Focus groups enable people to bounce ideas off one
doesn't require a huge budget, if you're smart
another and build upon each other's suggestions.
about it. Many businesses fork out for the first
It would be a good idea to run more than one
market research firm that promises to provide
focus group to ensure you receive an accurate
them with all the data they could ever need on
representation of your target audience.
their target audience. Shop around for the best
Case studies – they can provide you with even more deal if you are hiring an outside firm.
of an understanding on how an individual interacts
3. Poor choice of reference materials. The internet
with a product or service. It can give you a complete
is a great place to start your research, however,
picture of satisfaction, usage and attitudes towards
business libraries are also worth a visit. This may
the product. It is a good way to refine your business
seem like an obvious one but it's important to
proposition by using target customers to help create a
consider the source of the information you are
product that's meaningful and will set you apart from
getting as websites on the internet can include
your competitors.
inaccurate data and biased material.
For example, you could get a professional in your
4. Not looking into your competition. Gather as
industry to test the product over a period of time.
much information about your competitors as you
This could solve many teething problems with your
can. The more you know, the more you can use
concept as well as meeting needs that consumers are
effectively to establish your competitive edge.
looking for within your industry.
STA RTUP S SURVIVA L G U IDE

5. Ignoring your market research. The only thing

Research interviews – these one-to-one interviews are
worse than not doing market research at all, is
similar to focus groups as they include unstructured
not using your results. It would be easy to discard
questions that allow the interviewee the freedom to
research that did not provide the answers you
express their views on the product. This provides an
wanted, but what would be the point in spending
opportunity to gain a deeper understanding of the
all that money just because it didn't support the
user's point of view.
answers you wanted to see?
Successful market research takes planning and
strategy. Here are some of the most common mistakes
R E SE AR CH
GET TO KNOW YOUR USERS Get to know your users
By Daisy Stapley-Bunten, Startups Magazine

Felcana is the new generation of “We had seen some of the data and a historical trend. In the
digital pet care. It is an ecosystem connected devices that existed future, the startup plans to offer
of connected and responsive in the ‘human’ world and a bespoke veterinary dashboard
smart devices that monitor thought ‘well why don’t we have with a granular analysis for vets.
your pet. It was designed by something similar for pets?’ We
Since then that idea has grown
experienced vets and developed did some research on the devices
quite a lot. “Now we think
by inventive engineers. that were out there two years
of ourselves as a pet data
ago, and the devices didn’t have
One of those vets, and one of company, we undertake pet data
a clinical focus, it was more fun
the co-founders of Felcana, Dr. acquisition through connected
for your pet.”
James Andrews, explained the devices or other opportunities
source of their inspiration: “We DESIGN STAGES for acquisition. We are a pet
saw a huge gap in the market Felcana gathers information on data storage company, and we
when it comes to pet technology. all the fundamental things that are a pet data analytics company
So we founded in 2016 and indicate disease in cats and because we really analyse that
we’ve gone from two co- dogs: lethargy, lack of appetite, data we get to gain an insight,”
founders to over ten members change in appetite, drinking explained Andrews.
now. It’s all very exciting.” frequency and temperature.
UNDERSTANDING THE
Something as simple as a dog
THE INSPIRATION MARKET
drinking more water than normal
Co-founders James Andrews and The first step for Felcana
can be a sign of polydipsia which
Kimberley Schiller, both vets, was market research. They
is caused by diabetes – and is
hatched the idea for Felcana established that the market
not something that a pet owner
when they started looking at opposition was opportunistic
might necessarily notice.
wearable devices and how they for their startup and that there
could gather information that’s The Felcana app processes this was market demand through
clinically relevant and helpful to information in real time and research with pet owners. They
18 pet owners and vets. provides a breakdown of the then undertook an exercise to
 19

understand how to build the experience. We did it to test boost, to see the demand from
business through fundraising. our product on the market,” said the people we will eventually be
Andrews. “The other learning selling to. We then integrated
“What you find out is that
curve was that it is really time- all of their feedback into our
fundraising is not trivial. Raising
consuming, especially if you want product,” said Nolan.
£5m off the bat was not going
something credible. Anyone can
to happen. We went down the Even the startup’s name ‘Felcana’,
knock together a Kickstarter
route of applying for government a play on feline and canine,
campaign in a day, but to do a
grants – there is a lot of money was born out of a competition
good campaign requires a lot of
for innovation supported by the and thought of by pet owners.
up front investment.
Government. The name was important as it
THE (HUMAN allowed them to build a brand
“We went through Innovate UK AND PET) USER
that wasn’t just focussed on the
and applied for a small proof of EXPERIENCE (UX)
single product.
concept grant and were lucky “We spent a lot of time talking
enough to be successful in the to pet owners and vets, and DESIGN PRIORITIES
very first round. This allowed built prototypes to let people “Miniaturisation,” said Andrews,
us to raise capital in the private play with them and get a feel “Especially for any of our
STA RTUP S SURVIVA L G U IDE

investor market because we had for it in their home. We went to products that go on an animal.
the government grant already in people’s homes for hours and Again many of our competitors’
our business,” said Andrews. interviewed them very early on,” products weigh 60-70g, which
said Andrews, “Also we tried the when you’re placing that on a
CROWDFUNDING
different iterations of the product four kilogram animal, it can be
JOURNEY
on their pets, to see whether the substantial. It’s the equivalent
Felcana fundraised on Kickstarter
pet was bothered by them.” of carrying a can of coke around
in November 2016 and raised
your neck. Something that pet
£26,191 with 250 backers. “Going to Crufts in 2017 also
owners might not necessarily
“Kickstarter was an interesting gave the team a real morale
realise. Ours weighs 8.3g.”
R E SE AR CH
FAILURE TO LAUNCH

Failure to
launch
By Mark Walker, Marketing Director at
Attest

42%
of startups fail
because
there was
no market
demand
According to CB Insights, 42% of startups fail because
there was no market demand for their product or
service in the first place.

In a world awash with data and information, how can

so many founders, so routinely launch things that
people don't want? And what can you do to avoid
this fate?

In this chapter on research, we'll tackle these

questions head-on.
YOU ARE NOT THE MARKET
The most difficult problem is realising that you are
not the market, and acknowledging that you should
actually do some rigorous research in the first place.
Two things frequently happen here that makes this
particularly difficult for founders.

Firstly, you probably have a bunch of friends and

colleagues who are pretty similar to you. When you tell
them about your idea, they nod along enthusiastically
and tell you that ‘I'd definitely buy that!' Unfortunately,
they are also not representative of the mass market.

20 And while selling to friends, family and colleagues

may help you in the early days, it can quickly mask specifics of how they'd want to solve them. That is
problems with what the wider market wants. This your job as a founder. But engineer a brilliant solution
can be a very expensive and difficult lesson to learn, to a problem that doesn't exist, and you're on a road
and could be avoided by stopping to dispassionately to nowhere.
evaluate the market before you launch.
USE FRAMEWORKS TO GUIDE YOUR
RESEARCH
Secondly, ‘dispassionate' and ‘entrepreneurship'
One of the great challenges with research is how broad
are practically oxymorons. This means many
it is. What should you research, beyond problems?
entrepreneurs pay lip service to research. Rather than
trying to gain a genuine understanding of consumers, To help you with this, it's good to consider popular
and building their vision around that; they spend their strategy frameworks, and use them to guide your
energy finding data and research that fit into their research by filling in the gaps.
existing narrative. This is completely understandable
- if you're trying to raise investment you don't want Jobs To Be Done, Strengths, Weaknesses, Opportunities
and Threats (SWOT), Political, Economic, Social and
21
anything that pokes holes in your story - but it does
often mean that "No business plan survives first Technological (PEST), Blue Ocean Strategy, 5 Whys
contact with real consumers" to paraphrase Helmuth and Business Model Canvas are all proven ways to
Karl Bernhard Graf von Moltke. think about the way your product can success in a
competitive landscape.
While software companies can nimbly adjust their
HARDWARE CAN BE AGILE TOO
offering even after launch, it's a trickier and more
As referenced earlier, one of the defining aspects of
expensive move to pull off for hardware startups.
successful software companies is their ability to take
LOOK FOR PROBLEMS, DON'T ASK an iterative approach to product development, using
FOR SOLUTIONS
real life data to inform and shape their strategy.
Many arguments against research cite mavericks
like Steve Jobs and Henry Ford, who is said to have Why should a hardware startup settle for less?
quipped "If I had asked people what they wanted, Understanding your market is only the first step in
they would have asked for a faster horse." Indeed, your research journey.
consumers don't always know exactly what they want
There are now agile, rapid feedback platforms out
or need.
there that can help hardware companies enjoy the
But drawing the conclusion from this that research benefits of iterative development much like their
doesn't lead to breakthrough ideas is completely software counterparts. The difference is, you'll have
missing the point. to frontload your research earlier in the process than
a pure-play online startup.
Sure, asking consumers to design the solution they
want will often lead to them asking for slightly better What can you test? Here's a list for starters: Messaging
version of the things they already have: a little faster, and positioning, pricing, packaging, product design,
cheaper, longer-lasting etc. features and functionality, taglines, logo, ads
and creative assets, promotional plan, consumer
But if you ask them for all the things that frustrate
awareness of your product/category, distribution
them, you'll have a rich set of data to work with
channels, influencers and partners...what you can test
when designing your own visionary solution to fix
is now only really limited by the imagination, rather
STA RTUP S SURVIVA L G U IDE

their problems.
than the technology.
Need to go from A to B faster and in more comfort? A
If you can embed the discipline of real consumer
car is better than a faster horse. Need a more reliable
research across your business from the earliest
way to get from A to B on a rainy evening? An Uber is
stages, you'll stand the greatest chance of delivering
better than a cab.
consistent, predictable and repeatable growth as you
In other words, focus the research for your hardware look to expand your product range, launch into new
startup on understanding consumer problems and markets and reinvigorate your original idea for the
frustrations - not on asking them to tell you the next generation. Success is just a few questions away.
From Maker to Market: 02
Digi-Key Research
Resources
It's time to pull up a chair, grab a notepad and pen, and
make yourself a brew. You've got some research to do, 23
and Digi-Key can help.

❶ ❶Startup and Maker website at www.maker.io: Offering

the tools, resources and support you need to bring your
project to life
❷ ❷Article and Video Library: Offering the latest technology
news, product information and supplier updates
❸ ❸Digi-Key’s blog The Circuit: Timely updates, industry
thought-leadership and entertaining educational posts
❹ ❹eeWiki: Real solutions to tough engineering problems
❺ ❺App Note Archive: Thousands of quality indexed
documents and white papers from Digi-Key manufacturers
and other sources
❻ ❻Solution specific microsites including IoT, Industrial and
others
❼ ❼Product Training Modules: Simply the best way to learn
how to use the technology from our 700+ suppliers
❽ ❽Newest Products: A complete microsite dedicated to
highlighting the latest products from our suppliers

maker.io
STARTUP S SURVIVAL GUIDE

03
EVALUATION

Before you spend a lot of time designing your

project, it is essential that you give it careful
evaluation. First, weigh the pros and cons of
your project. Begin thinking about possible
team members, test your technology, and
establish a realistic timeline. Everything check
out? You're ready to design!

24 digikey.com
 BE R E AL I ST IC AN D PL AN AH E AD

maker.io
EVALUATIO N
DEFINITION IS KEY

Definition is key
By Caroline Hayes, Startups Magazine

Before you spend a lot of time and money designing your This process can also help you identify skillsets you may lack
project, invest some time in evaluating both the concept and possible team members you might want to work with
and the market. to fill these gaps. For example, is there someone in your
network that has knowledge of distribution or marketing
It's tempting, to want to get started as soon as possible,
which you will need later in the process?
once your research indicates this idea has legs, but a careful
and through evaluation will save a lot of headaches later in Following your research (see Research - Survival Guide),
the design and development cycle. ensure that the current project matches those results, or
assess what may need to be altered. This may mean adding
AVOID ‘BLACK SWANS'
features or functionality to meet customer or logistical
Evaluation can help a startup avoid ‘black swans'
needs. It may even lead to conducting a short survey to
(unforeseen events which have a major impact). Weighing
find out might be most useful to customers and clarify what
up the pros and cons of your project can identify some risks
features they expect.
and help you to plan to avoid them.
26
The problem with asking many people is that you be produced and available at a certain time to capture a
may receive more ideas than you bargained for! Ritam zeitgeist? It may be important to establish if the product
Gandhi, Founder and Director of Studio Graphene, a will come out before, during or after a particular trend.
company that works with entrepreneurs and product
DON'T DISMISS THE COMPETITION
development teams to bring a digital idea to market,
Competition is very important, says Gandhi. It can
suggests: "Show people the product, and watch how
reveal what to do and what not to do, as well as the
they use it and how they interact with it."
commercial viability.
Consider each one with a view to how practical they are
"It is easy to identify the incumbents via a Google
to implement and then draw up a shortlist of what looks
search, and this potentially demonstrates that there
likely to be manageable and profitable. This exercise may
is market need for your idea," he says. "Identify if
mean some design changes have to be made, making it
the marketplace is saturated and learn what they
also an opportune time to evaluate the materials and/or
have done well or badly," he advises. Evaluating your
components you are using. This also helps in assessing
competitors' projects for pros and cons is also helpful:
what resources need to be available for the different
"Try and see [the project] from a customer's point of
stages of production and to firm up what a realistic
view," says Gandhi.
development timeline will be.
He concedes it is harder to identify the market where
PLANNING SCENARIOS
there are no competitors, adding, in which case, startups
Planning scenarios can highlight potential troublespots,
which can be addressed before production begins. This
have to rely on market intelligence to evaluate market 27
conditions and opportunities.
is the time to evaluate the product life cycle, from its
introduction, to growth, to maturity and decline. Examining a range of competitors' offerings can also
indicate the price point that the market is able to bear;
Thinking ahead to what testing processes will be used,
this can affect your pricing strategy. If it is going to be
can focus your mind on ‘what if' scenarios so that an
priced higher than others that are currently available, the
avoidance or coping strategy can also be formulated.
differentiating features and value have to be made clear.
For example, is there enough rigorous testing for
The price you set is dependent on several factors.
production? For software, Gandhi recommends making
There are the development and production costs, of
sure sufficient regression testing is in place. This is
course, including the cost of any raw materials, as well
the re-running of functional and non-functional tests
as operating costs such as salaries, office space, retail
following a change, to ensure that software already
space and distribution costs. Gandhi also lists server
in production still performs after changes have been
hosting costs, which may need to accommodate spikes
made. "In a pre-production environment this can be
in activity or be scaled down according to demand, and
done by the user base in [the user's] environment to
the costs of any licenses.
make sure that changes are not affecting existing users,"
he says. The cost of a product may go up or down depending
on many factors, so evaluate that your price point and
Another production evaluation is the smoke test, the
costs have sufficient margins to weather any market
end-to-end production flow in a real environment. "It
storms that could raise the cost of production
is very important to have an accurate set of tests cases
and mirror test cases with a checklist of what is best and SET A DEFINITE COURSE
what is expected," adds Gandhi. Defining your product and how you will make it be
reality, helps you formalise the initial production. The
EVALUATE THE MARKET
process also helps to crystallise ideas for the next steps
Once there is an idea of how long the testing process
in your roadmap, such as design, marketing, production
will be, what the production costs will be and a general
and distribution.
timeline to bring your project to market, it is easier to
establish the market price for your product or service. To evaluate effectively, you must have a clear set
STA RTUP S SURVIVA L G U IDE

of criteria against which you can rate outcomes or

For a product to succeed, it has to meet the market's
performance. Within these, there has to be an element
needs. To establish just what these needs are, you
of identifying the ‘unknown unknowns', the things
need to evaluate the current marketplace and potential
you don't know you don't know. These may become
competitors.
apparent during the research phase or they may rear
Discussions with manufacturers, or service providers, their head further along your roadmap. The evaluation
can help determine the timeline of your project, so process has to ensure you are in a position to adapt
consider which manufacturer to use carefully and swiftly and without damaging penalties.
decide if your product is time sensitive. Will it need to
EVALUATIO N
MAKING HARDWARE IS HARD

Making hardware
is hard
By David Jakes, Director of UX & Design at Pigzbe

IMAGE CREDIT: ROGER STILLMAN/PENTAGRAM

"It's an exciting time to see our
work come alive."
- David Jakes, Director of UX & Design at Pigzbe

Making hardware is hard. So is making software or teams have worked closely together, sharing central
launching a new crypto token. When you try and do project planning.
these at once, so that they all work together, things
Integration between User Interface (UI) and hardware is
get complicated really quickly.
a critical part of developing an ecosystem of embedded
That's the challenge we have at Pigzbe. If you don't products.; something that is often forgotten in the age
know it already, Pigzbe helps kids aged six and over of cross-platform apps. Hardware design choices like 29
learn how to earn, save and budget through a fun materials, weight and even technology components
educational app, the Pigzbe Piggy Wallet (kind of like a such as screen type, haptics and chips can impact the
hand-held notifier) and their very first cryptocurrency, digital experience, and vice versa.
Wollo. In essence, at Pigzbe we're working to reinvent
For example - a slightly different power management
pocket money for a digital world.
chip may affect the maximum number of LEDs that
The build began last year, and in projects like this can be lit and to what brightness, which in turn
with so many moving parts, testing, evaluation and constrains the user interface. And so on.
responsiveness are fundamental. Particularly if - like
Similarly, maintaining a constant flow of ideas and
us - you want to make something that is user centric,
feedback between hardware and software team
and doesn't just work, but delights its users every
is critical - without it, you can run into difficulties.
step of the way.
Having a high-level of cross-disciplinary knowledge in
This delight is an emergent property of the entire the team makes us aware of the consequences of our
system. It's not something that can be achieved just decisions on each other's work.
by adding a particular bit of technology, but by making
Third and finally, user testing has also been crucial.
everything work together so that it's more than the
We're working to build a unique and fundamentally
sum of its parts.
new interactive experience that connects parents
So how have we worked to achieve this? and families together. Throughout the process,
Unsurprisingly, planning has been really important, we've constantly demoed what we've been working
so the process of defining and validating our concept on internally to make sure that the experiences link
involved intensive work. When we kicked off, we seamlessly.
obsessed over every detail at the planning stage to
Having guided the process through to the final
cover as much ground as possible. It's the equivalent
revision of the hardware we're now in the last phase
of sketching something out before applying paint to
of development - writing the code that will run on the
canvas - a mistaken assumption here will cause no
device for the first generation of Pigzbe customers.
end of headaches later on.
It's an exciting time to see our hard work come alive
STA RTUP S SURVIVA L G U IDE

The result of diligent planning, speaking with users

in the hands of kids who are testing our beta units.
and testing our concepts meant that Pigzbe's first
And for me, and the team at Pigzbe, that's what
prototype was quite similar to what will be the final
makes it worthwhile.
version. This consistent vision has allowed us to focus
on the details of the design. This way of working is essential in Internet of Things
(IoT) - you cannot depend on new and expensive
Just as important has been a high degree of
technology to do your work for you. It's a long and
coordination between different creative workstreams.
sometimes challenging process, but at the end of it
At Pigzbe we're split into three teams: product,
all something quite magical can emerge.
hardware, and software. From the beginning, all three
EVALUATIO N
SMART THINKING FOR STARTUPS

Smart
Coming from a Design Thinking background, I often
recommend that entrepreneurs integrate customer
feedback early, ideally at the 'rough' idea stage."

thinking
VALUE CUSTOMER FEEDBACK
• Keep talking to your customer for a deeper
customer understanding

for Although many entrepreneurs I have spoken with in

the past say they are customer friendly, they often

startups
fail to understand customer needs as they seek out
customer feedback intermittently.

From a Design Thinking standpoint, customer

Dr Rand Gerges-Yammine, feedback must be iterative and constant. After
Research Associate, integrating the feedback, entrepreneurs can tweak
Imperial College Business School
the prototype and then ask customers to test the new
version, gain feedback, and so on. Technologies, such
as 3D printing, enable rapid prototyping.

From my experience, this approach is much faster and

avoids investment in an expensive prototype at a late
stage, or even worse, production starting, only to find
a major flaw.
PLAN FOR PRODUCTION
30 • Production planning has to be flexible and
"Blending creative thinking with
art and design principles can
avoid major flaws later."
- Dr Rand Gerges-Yammine, Research Associate, Imperial

College Business School

31
enable rapid modifications Steer away from classifying direct competition as the
only competition and think as broadly as possible.
I would push entrepreneurs to run multiple rounds
Think in terms of customer needs. Who else could
of feedback at this stage, particularly with low-tech,
satisfy those needs and in what way? This is your
inexpensive prototypes prior to production. Of course,
competition.
this varies largely on the type of product or service.
LEARN TO NETWORK
One startup I consulted was working on a travel • Status is transferable
mobile app, and thus, did not have a physical product.
We brainstormed with a simple, paper version of an In one of our research projects at Imperial College
app and asked for customer feedback. We worked Business School, we found many high growth
with freelance engineers to come up with a draft of startups aim to associate with high-status companies
an actual mobile app, but with minimal investment. by establishing partnerships with large corporates or
obtaining a prestigious client.
The main benefit that startups have is the lack of
rigidity of larger corporations. Keep an open mind • Network. And if you aren't a networker, learn to
and pivot when necessary, if customers point towards network
another path.
As well as activating existing networks, also build a
OPTIMISE YOUR AGILITY new one. If you attended business school, who do
• Startups have agility and can react quickly to they know who could introduce you to a star contact
market changes in the industry? Another approach could be attending
networking events or joining an accelerator.
It is easier for them to react to changes in customer
taste and they are able to monitor future trends and Building relationships and genuine interactions with
integrate them. A variety of research tools is available key stakeholders (VCs, potential customers, other
to assist in identifying technological and social trends. entrepreneurs) can all contribute substantially to a
startup's success.
• Startups can be proactive and can shape
STA RTUP S SURVIVA L G U IDE

customer taste Dr Rand Gerges Yammine is a Research Associate

at the Innovation & Entrepreneurship group at
They can change the world that customers live in
Imperial College Business School London. She is
and create new needs. For instance, Uber has taken
currently working on a research project examining
into account every aspect of customers' and drivers'
the networking behaviours of entrepreneurs
unmet needs to create a new type of experience.
and is interested in digital entrepreneurship,
Instead of being reactive to trends, it created a new
interorganisational networks, interfirm collaboration,
world that spurred its own set of direct competitors.
open innovation and creativity.
• Competition is not necessarily who we think it is
 From Maker to Market: 03
Scheme-It

Scheme-it is an online schematic and diagramming tool

that allows anyone to design and share electronic circuit
diagrams.

The tool includes a comprehensive electronic symbol library

and an integrated Digi-Key component catalog that allows for
a wide range of circuit designs. Additionally, a built-in bill of
materials manager is provided to keep track of parts used in a
design.

32
Once a schematic drawing is complete, users can export it to
an image file or share it via email with others. We are Beta
testing an export to KiCad for schematics.
33
Scheme-it works natively in all major web browsers without
requiring the use of any plugins.
You only need to be a registered user if you want to share
and save designs.

❶ ❶Ability to diagram at the Block, Icon, System, or Schematic

level
❷ ❷A library of over 700 generic symbols, as well as custom
symbol creation
❸ ❸Access to over four million components via Digi-Key
Catalog integration
❹ ❹Freedom to keep designs private, make public, share via
link, or embedded into web pages, blogs or emails
❺ ❺Rapid design evolution via Bill of Material (BOM) import
capability
❻ ❻Integrated Bill of Materials and quoting
❼ ❼Export into PDF or PNG files and now other tools
❽ ❽A direct link to Digi-Key Technical Support for help with
component selection activities
❾ ❾Export functional schematic to KiCad design software

maker.io
STARTUP S SURVIVAL GUIDE

04
DESIGN

The design phase should be fun and exciting

because this is where the magic happens!

34 digikey.com
 WH E R E TH E MAG IC H APPE N S

maker.io
D E SIG N
WHERE DO YOU START?

Where
do you
start?
By Anna Flockett, Startups
Magazine

As a startup, once you have your idea and you are THE WHOLE PRODUCT
ready to move forward, the design stage is such an People succeed the most in design when they take
important stage in your journey. So when it comes to their time, and enable a proper merger between
designing where do you start and what are the really product and packaging. The design of a product needs
important things you need to think about? to be consistent throughout, with every element
HOW IMPORTANT IS DESIGN? of design tying into one experience. For example
The design of a product is essential for it to step up Corcoran explained with the Kano Computer Kit its
from idea to prototype. To really make a product come design strategy was to make their design intuitive
to life the main elements are the design, materials and and accessible for children with lots of custom colour
components, but obviously design qualities will be coded parts. Their packaging design was well suited
different for hardware and software products. for neat storage as well as being able to fit through
a letter box. The process was really about creating a
More often than not it is the design that sells brand experience across the whole product.
a product. Heather Corcoran of Kickstarter
THINK ABOUT EVERYONE
said successful design goes hand-in-hand with
A certain type of design might work really well for a
successful campaigns and that goes hand-in-hand
percentage of your target audience, but you need a
with successful businesses long term. "Design is
design that will essentially be perfect for everyone. It
more than what a product looks like, the material
can be difficult tailoring to a vast range of people, but
choice and the design language. It's about solving a
you just need to look at your product from all angles.
problem for the user."
WHERE DO I START? For example with JIVR, a foldable, electric and
The design stage can be quite daunting but can also chainless bike, the design included an electric feature
be quite fun. If you tend you stick to asking yourself so you use less energy and sweat less – perfect. The
the following questions, your design will be built from design all also included being chainless so as you fold
a strong foundation: it there is no complications – perfect. But one design
fault in a lot of bikes for females is not being dress
What is the function of my product? friendly, so Joseph Cardone, Sales Representative for
JIVR explained: "The bike has been designed to be
Will my product be able to withstand use?
unisex, it includes a low bike frame on purpose with
Is it reliable? women in mind, this means they can just step over it
without having to lift their leg right up."
Can it be produced at a cost effective price?
DON'T BE AFRAID OF CHANGE
Will the manufacturing process be easy to produce? It is very unlikely that you will design the perfect
product first time round. Don't be afraid to change
How high quality will your product be?
36 the design, the blueprint, and the key elements to
the body of the design, after all Rome wasn't built in HOW DID YOU DESIGN IT?
a day. When it comes to building a successful idea, Following Mines' journey he explained: "The idea was
design is the most important feature, in fact some made a reality by winning the Playable City award,
would argue it is the stage that dominates and can which enabled us to bring our idea to life. When
give you a real edge over competitors. designing the actual product, we spend a lot of time
thinking about the end user - a person in the urban
Obviously it is impossible to provide a universal
environment, before even thinking about the tech."
design process to fit all projects, but one thing that
will apply to all projects is that you need to learn on How do people move through the city?
the way, and there is no harm in taking one route to a
certain level and it not being the correct one. How do people act in their built environment?

Tiernan Mines, Co-Founder of Hello Lamp Post, a What do people consider a ‘friendly' conversation?
playful system that brings citizens and their city closer
together by using text messages to allow people
What would make people more ‘open' to an
interactive built environment?
37
to talk to objects such as statues and post boxes,
explained that when it comes to design he is a strong And many other considerations
believer, especially at the early stage of building a
The end user is one part of the design journey that
product that no idea is a bad idea. This is what drives
must remain at the focus point. By realising exactly
innovation: "It's easier to ask forgiveness than it is to
who you are designing for and engaging how they will
get permission."
feel and react to your product will make your design
HAVE A CLEAR GOAL as effective as possible.
As long as you stay focussed on what you want to
Mines added: "Not keeping focus on the end-user can
achieve in the end, and define your product vision
become a huge time burn and distractor."
and strategy it will work out in the end. If you have
ever worked on a project where the overall goal One technique a lot of startups use when it comes to
wasn't clear then you will know if you only vaguely design is ‘working backwards' which can add clarity
understand the idea and what direction the design and definition to the end vision.
needs to head it has negative consequences.
TOP DESIGN TIPS
Having a clear vision and end goal will set the Focus on the user: Mines said: "Whether the business
direction and guide the way, the vision will essentially is B2B or B2C, continually listen to users - this will
capture the essence of the product which is critical ultimately be the best and often quickest route to
for a successful product. adding value to the product/service.

Mines said as a team they were initially driven by two He added that often it can be easy to focus on
observations. "The first was that codes exist on street the ‘sexy' elements when building a product. "For
objects which are hyper-local reference points that example in our case, the potential tech. But it's of no
aren't used for anything but maintenance. The second value to build a product that you're excited about, but
was that when we move through cities/past objects, no-one will use."
we all have ideas/stories/memories triggered, but
It is also important to note to use your potential users
these are never shared with anyone left anywhere."
and ask for feedback.
STA RTUP S SURVIVA L G U IDE

Basically Mines' vision was to combine these two

It will never be perfect: Mines said from his own
observations and create a digital journal across
experiences he learnt very quickly that when
the city, where objects would learn about their
designing a product, you will never reach your own
surroundings and people's stories, and share
idea of perfection.
them with other citizens. This vision evolved into
recognising a massive disconnect between city Know your competitors: There is nothing wrong with
governments and their citizens and by making the a bit of healthy competition, so keeping an eye on
city urban environment interactive, we might be able what they are designing and how they have worked
to bridge that gap. their process is fine as long as you are not copying.
D E SIG N
DESIGNING AN IOT PRODUCT Designing an
IoT product
By Pauline Issard, Founder of Trackener

As Reid Hoffman said: "If you are not the assumptions that need to be quickly and iterate from the result
embarrassed by the first version of validated and then design what you of the test. I'll let you in on a trade
your product, you've launched too can with the lowest budget. secret that served us well: Make up
late." I love this quote as I think it is stories to encourage people to test
In this phase it is important not to
very true, especially when launching your product more seriously (we
over-engineer. There are a lot of
a hardware and software product. were telling our testers that the data
assumptions that can be tested
they were seeing on the mock-up
After three years of product without a single line of code or
was from real horses, this was of
development, delivering our 24/7 complicated mechanical design. By
course, completely false…)
horse monitoring technology to the using simple solutions and being
first paying customers was one of creative, you can save a lot of money In most products the technical
the most rewarding but also one for the same result. validation is the easiest, so you should
of the most stressful moments of focus your efforts on validating your
Our very first prototype was
our startup journey. Designing the ideas by having potential customers
composed of a £50 smartphone
product was a real roller-coaster and test things as often as possible.
attached to the girth of the horse.
we learnt a lot in the process, so I
This was enough to inform us that As you validate your assumptions,
hope that sharing our learnings can
from simply tracking the speed of your prototype is becoming better
help fellow entrepreneurs progress
the horse, you cannot accurately and better and after having enough
faster and more effectively.
detect the gait of the horse. Thus, users become enthusiastic about it,
In this article I will go through the we had to use an accelerometer. you can then move into the design
different phases of product design for manufacturing phase.
Marvel App is an amazing tool to test
and share our learnings from each
what potential users would really like FROM PROTOTYPE TO
of these phases. My aim is to PRODUCTION
to see on the app and what you can
demonstrate how it really is possible This was the most challenging phase
eliminate, without coding anything.
to develop an Internet of Things (IoT) of the product development for us.
product from scratch on a very low If the product you have in mind My biggest takeaway was: to achieve
budget. I will finish by reflecting on involves an electronic component, a production level design of the
my top three lessons learnt from this try first to find something off- product, everything will take much
journey. the-shelf that could satisfy what longer than you think.
GETTING TO A PROOF you need. Only start doing some
When you design a prototype, you
OF CONCEPT hardware development if there isn't
don't need things to work perfectly.
The objective of this first phase is anything suitable. It is much more
When designing for manufacturing,
to identify a feasible product that important to get a work-alike than
things cannot be approximative and
will serve to solve the market need. a look-alike prototype. With tech
must be good enough to prevent
The major part of this phase is products the important thing to
customer complaints. Your product
about interacting with future users validate is whether the product you
must be secure and robust enough
and industry experts in order to have in mind answers the needs of
to be used in various intense
confirm that it is worth continuing your future users, not whether they
conditions as well as be within the
to develop the product. This affirms will like the colour of it.
legal requirements to be certified.
whether the product you have in
The earlier on you are in the project All in all, this creates many more
mind is technically feasible and will
- the less you have to lose. Be bold challenges than you initially think.
suit user expectations.
and test as much as you can: you can
38 You should start by identifying build different prototypes, test them
My strongest piece of advice here is
 "A challenging but
rewarding journey."
- Pauline Issard, Founder of Trackener

to run as many small batches as you many people as possible. Feel free device, I always discourage them.
can before scaling up the number of to connect with me on LinkedIn if Use off-the-shelf products as much
products you manufacture. There you'd like to discuss further. Lastly, as possible rather than building
are several problems we didn't I'd like to share my top three lessons custom hardware. Building a
identify with only a handful of learnt during these three years spent hardware business is really ten times
testers. They reared their ugly head building an IoT product and business. harder than building a software
when we had 10 users intensively
THINGS TAKE TIME
business, so avoid it as much as 39
using the product. Even if it's much you can. Software is less costly, you
Things take time when you're talking
more expensive per unit to run can iterate more rapidly and change
about designing a hardware and
small batches, you will still save your product with relative ease.
software product. When we started
a lot of money compared with It also has less bugs, as hardware
to work on Trackener in September
manufacturing a full batch again with means electronic problems and
2015, we were convinced that in a
the corrected specifications. bugs in the firmware.
year or two we would already start
Similarly with the software design: making revenue…but we finally HAVING A STRONG
delivered our product to paying NETWORK IS KEY
working incrementally to add new
customers in October 2018! Every I think this is true when building
features and progressively improve
phase of the product development any business, but I think this is
the quality to satisfy the users is
took longer than I thought: especially useful when designing a
the best way to go. We made the
complex product. You can't be an
mistake of spending a substantial
• Doing enough trials with users expert on every subject, so knowing
amount of money on migrating our
to validate the choice of the some people you can reach out to
app to a native app. We decided to
sensors and connectivity of the when you have technical questions
stop this halfway as it wasn't what
device or just have no idea how to solve a
was needed at that moment. Our
problem is super useful. Even if that
time and money was better spent on • Modifying the design of
person doesn't have the answer
making the existing app better. the electronic board from a
themselves, they probably know
prototype to a production
Developing a product on a very tight someone who does.
suitable design
budget is possible, but it is important
Never hesitate to reach out to your
to take baby steps that will allow you • Getting the firmware and
network. Dare to contact anyone
to readjust your trajectory quickly if software to be stable enough
who you think could help you:
needed. Re-evaluate your priorities for users to be satisfied with
people are more happy to help that
often and manage the budget in
All took an age - and you have to you think. Being asked for advice is
minute detail. This will ensure you're
keep in mind, with a physical product, flattering. It is always worth sending
spending on the right things and that
every time you have to manufacture a message to someone, even if
STA RTUP S SURVIVA L G U IDE

you have enough runway to go to

a new prototype the lead time slows you think they're too busy or too
your next milestone.
things once more. successful to be interested in you.
In my opinion, the hardware design HARDWARE IS HARD Let's face it, you're building a
phase and development between It's been said thousands of time, startup, you deal with failure at
the Minimum Viable Product (MVP) but you can't imagine how true it is least five times a day – sending a
and the production product is largely until you've been there! Whenever quick message on LinkedIn is child's
underestimated by many founders. I I meet someone who is working on play, you have nothing to lose and
learnt that the hard way. This why I a project involving an electronic everything to gain!
like to share my experience with as
STARTUP S SURVIVAL GUIDE

THE VERY FIRST PROTOTYPE

TESTING THE RESISTANCE OF THE DEVICE

TO 500KG WITHOUT PAYING FOR A LAB

40
 41

From Maker to Market: 04

Reference Design Library
Instead of searching many manufacturer sites or calling
on companies to find and compare designs, now you can
search for designs based on the circuit’s performance
using Digi-Key’s Reference Design Library.
❶ ❶Save Engineers time
❷ ❷Deliver ideas, fast
❸ ❸Sift through designs based on performance
❹ ❹Provide designs conveniently accompanied by their
schematics

maker.io
D E SIG N
USER CENTRED PRODUCT DEVELOPMENT

User centred product

development
Sadhbh Doherty, Product Manager of Tech Will Save Us

Technology threads through every aspect of our Creativity and fun is at the core of our child-inspired
lives. Yet most people know very little about how product development process. We design our
it works, how it is made or how to fix it when it play experiences around themes children love like
breaks. Tech Will Save Us is on a mission to fill the music, gaming, sustainability, wearables and more.
technology skills gap by providing fun, educational Inspiration from everyday life taps into the hobbies
and accessible experiences for children to creatively and passions that kids love.
engage with technology. Our kits provide tactile
When we embark on the design process, we follow a
experiences and hands-on exposure to modern
user-centred product development process unlocking
technology tools and concepts.
a series of gates.
Many consumer devices being created today are
Here are the steps we value during that process. We
designed for obsolescence. Tech gadgets all have
consider these before bringing a new kit to market:
short-term life spans because as soon as the latest
and greatest device comes out – with more speed and SET THE BRIEF
functionality – desire is mistaken for need. We believe During this first stage, we combine inspiration and
in a world where individuals have the skills to design insights from our customers, the world of tech and
and imagine devices that are more bespoke and more finally pull from interesting R&D projects we've
meaningful because they made them with their hands. been working on behind the scenes. It’s an exciting
Design is more than making products desirable. exploratory stage but we make sure to validate our
findings with a wider audience.
Great product design and branding has been key
to our success and we’re proud to have products CONCEPT
featured in permanent collections at both MoMA and This is where we take those great ideas and begin to
shape them into products. We constantly question -
42 London’s Design Museum.
why is it fun, what are you learning, what does it do?
 TECH WILL SAVE US SEW & GLOW KIT
43

EDUCATIONAL STEM TOY

Test & Learn - We like to get hands on as quickly as a busy time where we're bring our experiences to life
possible and make prototypes we can test with kids - from hardcore electronic engineering and material
as soon as possible. Changes come thick and fast as finishes to robust digital tools.
you see children interacting with a new kit. We'll go
All of this user testing means our products can
through countless revisions at this stage. It was during
change dramatically from how we first envision them.
a user testing session for our Sew + Glow kit, that we
In the test and learn phase of our Creative Coder Kit
experienced a ‘lightbulb moment’. The kids created
which uses an accelerometer to track movement,
their own designs in the sessions and two days later
we were looking at how kids could use, collect and
sent us pictures of all the effort and work they'd put
control their own data. We discovered that having to
into finishing them and making them unique to them.
constantly check a screen got in the way of the fun
This feedback gave us the confidence to move to the
they were having running around. The kit soon took
next stage.
on a more portable form and could be programmed to
SPECIFICATION give you the insights in a simple way once you were
STA RTUP S SURVIVA L G U IDE

We know what we're developing now and it's time done going crazy. Think celebratory rainbow lights or
to turn something raw into a polished product that angry red flashes.
jumps off the shelf at people. This is where we
get detail oriented from electronics, to plastics, to When it comes to getting real products out of the
packaging and messaging. We constantly check in door, it requires diverse approaches. Hardware is
with people outside the business to make sure we're hard. Stay close to your product from design to user
on the right track. experience; from manufacturing to margins. Find
people to support you and who can grow with you,
PRODUCTION
advisers, employees and mentors. And finally ask for
Our products are both physical and digital so this is
help and help others!
STARTUP S SURVIVAL GUIDE

05
PROTOTYPING

The prototyping phase can also be fun and

exciting because this is where the proverbial
'rubber meets the road'. When prototyping, you
truly discover if your idea and design actually
work as expected. During this phase, prepare
yourself for heartache, setbacks, and, most
importantly, lessons learned

44 digikey.com
 R U BB E R ME E TS TH E R OAD

maker.io
PR OTOTYPIN G
ROUGH AND READY Rough and ready
By Joe Bush, Startups Magazine

Of all the stages in the process and startups should be prepared successful prototyping is about
from getting a product from for setbacks. The prototyping planning and process. Having a
vision and concept through to phase is where errors and clear and appropriate approach
post-production, prototyping oversights are discovered, but laid out makes for a better
is perhaps one of the most most importantly, it is where product, reduces time-to-market
enjoyable for the startup involved. lessons can be learned, and and results in less sleepless
problems are put right. nights. "However, the frustrating
And with good reason. It is
truth when it comes to hardware
of course the first time that WHEN TO
PROTOTYPE? prototyping is that an approach
founders and entrepreneurs get a
In terms of when to prototype, of ‘throwing stuff at a wall and
physical glimpse of their product
Kurt Dammermann, Senior seeing what sticks' is all too often
idea. The research and proof-of-
Technical Director, Mechanical adopted," he said.
concept has been done, you've
Engineering, at product FOUR STAGES
done all your CAD drawings and
innovation lab Bressler Group, Prototyping can be made
now you actually get to feel and
commented: "Prototypes are palatable by breaking it down into
touch your product in the flesh
basically designed to answer four stages: proof-of-concept,
for the first time.
questions. So the best time to design (looks-like), engineering
Of course it won't be identical build a prototype is when you have (works-like) and optimisation
to the final version, but that's a question that you can't answer (combining works-like and looks-
the whole idea behind the with CAD, or when you need like). Your maker-to-manufacture
prototyping process in the first feedback from users. Basically journey will be made up of
place. It's the place where you any time you have a question you multiple prototypes within each
can really conduct the acid test can't answer, building something stage, each serving as a tool to
and discover how viable your is a good idea." incrementally test, optimise and
idea is and if it will actually work validate your idea.
And as Alex Millington-Jung,
as expected.
Startup Lead at design and "The name of the game is
The path from concept to manufacturing firm RPD to identify the unique and
46 production is never a straight line International explained, audacious parts of your idea,"
Millington-Jung added. "In doing when prototyping is to make it latest tech' or making the most
so, you can focus on what makes as basic, as rough and as quick as beautiful prototype," Millington-
your product different and bold, possible. We often talk about the Jung added.
rather than over-investing and level of resolution for a prototype.
CONSIDER 'DFM'
re-inventing the wheel. In the beginning of a project,
One key element often
everything tends to be low-res,
"Before beginning any overlooked in the early stages of
it's hacked together. That is very
prototyping journey, you must prototyping is scale production
appropriate in the beginning.
have answers to the fundamental considerations. The final
product and business questions: "As the project progresses prototype you will create in
what problem am I trying to things become more refined the optimisation stage will be
solve? Who is my customer and and you get closer to what we ‘design for manufacture' (DFM)
how do I build their feedback call a high resolution prototype ready, meaning your device is
into my prototyping plan? What that is very close to the product production and cost optimised.
am I looking to achieve with you might ship. And really the The pitfall here is that many
each prototype?" key to prototyping is making startups will only consider DFM
the lowest resolution prototype right at the end - often when
Crucially, you should make it's too late or costly to change
that will answer the questions
a habit of asking yourself anything.
you have at that stage of the
reflective questions throughout
the prototyping process. Ideas
development process."
The most efficient prototyping 47
change and goalposts move as Dammermann explained that processes start with a focus on
you prototype, that's supposed it's especially important for manufacturing. As you develop
to happen, but defining the key startups, as typically their your commercial specification,
questions and hypotheses you product has to be revolutionary unit cost should become a
are looking to solve at each stage as opposed to evolutionary. feature. Ask yourself, what does
will ensure you don't deviate When an established company is this product need to cost for
from the problem you're trying prototyping it already has a lot of my business to work? Working
to solve. answers before it starts, it knows backwards from this cost,
where the product fits within its you should begin to identify
ROUGH AND READY
makeup, and it knows how to the manufacturing processes
In the early stages of prototyping,
develop products. However, for available and therefore the
the focus should be on building
startups the field is wide open. design features that need to be
quick, cheap and dirty – this
They are trying to establish who considered. Seeking knowledge
is your opportunity to move
they are as a company, what they and advice on these restrictions
quick, make mistakes and not
make, and who their customer early in the process will save you
get hurt. It's good practice for
is - all at once. So prototyping cost and time.
early prototyping to utilise
proven technologies, processes becomes essential for them to
In summary, don't prototype
and tools to validate your idea. answer all those questions. They
for prototypes sake. Always
Millington-Jung added: "For also have limited money, which
prototype as part of your bigger
example, when proving the equates to limited time.
picture that includes DFM. Share
Google Glass concept, apart The most common problem seen your prototypes, talk to people,
from the single piece of glass in prototyping is the romance of get feedback, and don't prototype
that projected light into the eye an idea. The challenge is to be as in a vacuum. Companies only
of the user, Google used only objective as possible and develop look to copy proven ideas - they
off-the-shelf equipment. Later a stringent plan of validation have the same risks as you in
prototypes progressed to proving stages and proof points. launching an unproven product.
that the computing power could Your biggest differentiator is your
STA RTUP S SURVIVA L G U IDE

be reduced in size and that the The most successful startups ability to execute.
product could be worn. But are adaptable and can quickly
initially, it was just proving that accept when an idea needs to be Ji Li, Managing Partner of
projection could be put into your realigned or reimagined. "Adding innovation consultancy,
line of sight without you instantly complexity or throwing more Prototype Thinking, said: "We
falling over." money at a prototype will not encourage companies to look
solve the problem. We've seen for what we call magic moments
Dammermann added: "The most many a startup shipwrecked – those moments of genuine
important thing to remember by the shining lights of ‘the true added value for the user,
 when their eyes light up. So prototype is an awesome vehicle doing, not by thinking; maximise
PR OTOTYPIN G
ROUGH AND READY
startups need to look for these for that." the rate of learning by reducing
real moments of clarity for the time to try new ideas; conjectures
user, when they are made aware Further discussing working
become experiments, actuals
of something that they didn't closely with your end users Li
become decisions; watch what
think possible." continued: "Founders and users
users do in the real world; build a
have different perspectives so
BUILD WITH YOUR one-hour prototype; test weekly
you should be involving a true
COMMUNITY with real users; look for the magic
representative of your users from
What shouldn't be moment; nail it before you scale it.
day one. A lot of founders typically
underestimated is the
get nervous about showing an Discussing some of the
importance of involving your
unfinished idea to a user, but potential pitfalls of prototyping
customers and end users during
ultimately around 90% of the Dammermann added that
the prototyping process, as
social capital of your business startups often try and make
Dammermann highlighted:
is about getting the right user a prototype that is too much
"This is really one of the main through the door to give their like the final product too early.
reasons to prototype in the first feedback. They will immediately He stressed the importance
place. It's very easy in a startup make your product better, and for startups to understand
to become very insular – you're you'll be able to use that to get their technology before they
working around the clock on more social capital, even if you understand their product. In
making your vision a reality, don't have a product yet. addition, some companies get
but it's so important to get out hung up on their technology and
"We've actually seen companies
there and speak to potential never get their prototype in front
make hires out of user testing,
customers to make sure you're of the end users.
and we've seen companies get
on the right track.
major corporate sales contracts "It's surprising how many startups
"Most startups don't have a out of user testing when they spend a significant amount of
history of products to look back weren't even testing anything time making a prototype and
on, and probably don't have a more than a mock-up." then it's only looked at internally.
marketing department to be able And they then move on without
Prototype Thinking has an eight-
to tell them if they are including ever testing it properly or
stage process for companies to
the right features at the right showing it to end users. So
work through their prototyping
cost. So they have to figure getting the proper feedback from
process. These are the eight tools
all this out themselves and a prototyping is a must.
of prototype thinking: think by
"One of the wonderful things
about prototyping is that if you

From Maker to design your prototype properly

you learn what you want to learn

Market 05 and the answers to the questions

you need answering.

BOM Manager "However, because it's an

unpredictable physical process
you also learn things you didn't
The Digi-Key BOM Manager is designed to ease the process expect. And in many ways this is
the real bonus of prototyping. It
of BOM creation, management, and maintenance based
illuminates things that you didn't
on this simple definition. With features to save and archive know you didn't know."
revisions, multiply by number of assemblies and collaborate
Following the suggestions laid
with others the Digi-Key BOM Manager is truly in a class all out in this article will undoubtedly
its own. make the prototyping process
easier for you. However, that
doesn't mean it will become
Bill of Materials: A list of parts and the quantities of
easy. How did Mike Tyson put it
each needed to manufacture a single end product. again? "Everyone has a plan until

maker.io
you're punched in the mouth."
The SwimAR
prototyping journey
By Mark Hester, CEO at SwimAR and Co-Founder/Technology Director at Imagination Factory

WATERPROOF WORKING DEMONSTRATOR FOR POOL

site". So, one of the very first
prototypes we made is called
a "Cover Story Mockup". This 49
is a vision of how your product
might appear in a magazine that
your future customers are likely
to buy. We chose a Triathlon
magazine and imagined what
might be on the front cover and
TESTING

then how a 2-page spread might

appear. We've done it using
professional graphics software,
but you can just as easily do
The startup business I am as much as possible about this with Sharpies and some A4
heading up began like most what could make it fail. This paper. The key is to think about
other disruptive tech businesses includes technical, behavioural, how you would like the media to
- with an idea. But from day economic and even cultural present your successful product
one the team knew we would pitfalls. Prototyping enables your to customers who are eager to
need to spend significant time team to stress-test your idea in purchase it. The benefit of this
prototyping and testing that idea. different ways before it gets into kind of prototype is it helps you
the hands of customers. test the idea with your team,
We have the benefit of being potential users and many other
professional designers, so we For this reason, it's important stakeholders. It's much easier
have worked on numerous to note that not all prototypes to get someone's response to
projects that required the are made alike. We have used something like this rather than
process of design-make-test- every single kind of prototype in sending a dull document or email.
iterate. But now we had to listen the development of SwimAR (a
to the advice we have given to heads-up display for swimmers) Staying with the theme of
others and not cut corners! so let's go through some of them low-fidelity prototyping we
one by one. discovered early on in the
That raises the first question development of SwimAR that
STA RTUP S SURVIVA L G U IDE

about prototyping. Why do it It's important to understand that customers would prefer to attach
at all? It can be time consuming prototypes do not all have to be a device to their existing pairs of
and expensive and there are so very sophisticated. And in fact, goggles. This meant we had a
many different ways to make you get the best value if you challenge to design something
things. Using SwimAR as a case start at the very low fidelity level. that could retro-fit to a range
study let's unpack the power of As the architect Frank Lloyd- of organic shapes. The simplest
prototyping. Wright said, "You can use an approach to this was to purchase
eraser on the drawing board or a bunch of goggles and some
Firstly, to bring an idea to market
a sledgehammer on the building model-making foam and cut a
a startup must understand
STARTUP S SURVIVAL GUIDE

HIGH-DENSITY FOAM MODEL OF SWIMAR

TESTING WATERPROOFNESS IN SLA

50
 COVER STORY MOCKUP OF SWIMAR
51

STA RTUP S SURVIVA L G U IDE

HIGH QUALITY VISUAL MODEL (MADE BY

OUR FRIENDS AT OGLE MODELS)
STARTUP S SURVIVAL GUIDE load of different shapes by hand. right for your needs. porous so we needed a different
You can buy foam in a variety method to make a waterproof
of densities from model-making In simple terms there are three
demonstrator. In the end we
shops. The very low-density kinds of 3D printing; SLS, SLA
opted for the SLA process for two
ones can be cut with a knife and FDM.
reasons. Firstly, parts are very
or hot wire and shaped with SLS makes models from nylon smooth so it's possible to get a
sandpaper. The medium to high powder using lasers to sinter the reliable and repeatable seal with
density foams need a bandsaw powder to itself. This means the an o-ring. Secondly, the standard
or handsaw but hold their shape parts are very strong and ideal SLA materials are transparent
better and allow you to carve for testing functional parts such which helps when evaluating how
some details and drill holes. as mechanisms. But it is also parts are fitting together.

These "rough and ready" usually the cheapest method of

If your startup is developing a
prototypes can also be used to rapid prototyping, so it is ideal
product that needs electronics
get early feedback from target for quick block models. SLS parts
you will also want to prototype
users. Many startups are worried can be dyed but for anything
this. We have used the
about showing anything that that requires a high quality finish
Raspberry Pi zero platform to
doesn't look finished to potential they are not the right choice.
drive our display and services
customers. But we discovered For SwimAR we used SLS parts
such as Aisler and Fritzing to
early on that it's actually one of to make some early stage block
create simple circuit boards for
the best ways of getting honest models that we used to evaluate
switches and sensors. There
feedback. When a prototype, the hydrodynamics in the pool
are huge communities around
model or picture of your idea when attached to a pair of
Raspberry Pi and Arduino so it's
looks highly polished people have goggles.
not hard to find people with the
less of a tendency to suggest FDM models are what most skills to help you. At some point
how it might be improved. When people think of as 3D printing you will need to engage a proper
you show them something that is and are made by heating up a electronics company but in the
still obviously in its infancy they filament of plastic that is extruded early stages you can get a long
don't hold back as much from onto a flat bed as the extruder way for a minimal investment.
pulling it apart, modifying it or head moves around. The kind
scribbling on it. At some point you will want to
of printer we have in our studio
show your idea to the world.
However, there does come a does a good job of building
Large brands do this with
time when you want to move parts that we can use to test
beautiful marketing models so
on to something with a higher mechanisms and demonstrate
why shouldn't you? Provided
fidelity than your rough and ready shape and form. We have made
you have the budget to make
prototypes. This is where it is dozens of variations of SwimAR
a visual model it can be well
worth understanding what can to test everything from the fit
worth doing especially if you
be achieved with modern rapid of electronic components to the
plan to exhibit at a trade show
prototyping techniques. We are ergonomics of the device on the
or need to impress people in the
fortunate to have an Ultimaker side of people's heads.
boardroom with your product.
3D printer in our studio which More expensive 3D printers exist This kind of model should be left
has enabled us to make multiple that can build much faster, larger to the professionals so expect to
block models of SwimAR. 3D parts or even in materials such part with upwards of a couple of
printing has become mainstream as Titanium. Most startups will thousand pounds.
over recent years and even if you not be able to afford a printer
don't have one in-house there are As a final word on prototyping it's
like this but they might be able
many online services where you never too early to start making
to access them through specialist
can upload a computer model, and testing your idea. Just like
bureaus or collaborations with
get an instant quote and order most of us loved drawing as
universities and industry.
models within a few days at a very children we all used make things
reasonable price. If you plan to At a certain point with SwimAR as a way of learning. For some
use 3D printed models there are a we needed to test the display reason many of us seem to grow
number of different technologies underwater. It's very difficult to out of this habit and need to be
that all have their place so you get a reliable seal on parts made persuaded of its value again.
should do some background using the FDM process because
Startups – go forth and make…
52 research to understand what's the layers it is built from create
leak paths. And SLS parts are
A primitive form
by Tom Ansell, CEO at Whyable

Prototyping sounds quite technical, and while I created. Hence why in the Robotics example above,
was thinking about how to write this article, it we're interested in the challenging technical features,
struck me that one challenge would be to make it - and not the all-terrain vehicle element. So, prototyping
actually interesting... Let's start with the etymology; is not something every startup needs to do, the most
Prototypus is the Medieval Latin, and prototypon cost and time efficient method is to take only what has
is the Greek and literally means "a first or primitive not been done before and prototype that.
form." This begins to make things a little more exciting
as the startup world should be about a journey of
SOFTWARE PROTOTYPING
To further this point; a software startup looking to
53
adventure and exploration, and creating the first of
create an application for buying and selling holistic
something is by definition explorative.
medical services such as reiki, massage, or Ayurveda
HARDWARE PROTOTYPING is not doing anything particularly groundbreaking and
We're working with a robotics startup at the moment would not need to be prototyped. A user will need
and building a couple of prototypes; one of which is to create an account, search some listings, and make
an autonomous vehicle for the agricultural industry, a payment, all of which is a very well-trodden path
a wheelbarrow or trailer with a mind of its own! It and could easily be illustrated by picking out some
will be demonstrated to investors and customers, competitors or comparable businesses.
and on its successful completion will allow us to
However, if the app was going to collect information
raise money and sell the next version, the Minimum
on the user profile setup and then use an algorithm
Viable Product (MVP), to the customers. So, at a
based on that profile data, as well as the additional
high level, it is demonstrating an ability to deliver on
data collected by the user actually using the
a theoretical concept.
application, essentially a machine learning task, it
On a more micro level, this autonomous wheelbarrow... would be good to prototype that. It's a differentiator,
needs to demonstrate some more critical technical demonstrates something new, original and primitive.
features. Can it:
THE PROCESS
• Recognise a moving object, and a non-moving From the two examples above, we can begin to see the
object pattern; Before we even start the process of building
a prototype, we need to first ask whether it's even
• Avoid these objects necessary, are we doing anything new and explorative.
• Follow a person (a product requirement) Then we need to isolate that new feature or product,
outline a simple road map for building it out, ensuring
• And work in tandem with another autonomous
that it demonstrates the innovation well enough for
vehicle
someone relevant to green light the next stage of the
Our engineers are experts in all-terrain vehicles, so project. Probably, your MVP.
there's no need to prototype this element of the
STA RTUP S SURVIVA L G U IDE

We see so many startups spend far too much time

product in too much detail, as we have a track record
in engineering and product development but it's
and it's in the market. The features above are what
important that you're critical of why you're engineering
is going to differentiate our product and needs to
and for what reason. When it comes to prototyping,
be tested to be validated, and demonstrated to the
it must be to solve something new, otherwise, it does
people with the money.
not make sense, and your just wasting precious time
Let's dwell on this for a moment…Given a prototype is and money. You can go straight to your MVP and miss
a primitive version or a first or primitive form, there is out the prototyping step.
little point creating something that has already been
STARTUP S SURVIVAL GUIDE

06
FUNDING

Money may be the root of all evil, but it is also

the most necessary of all evils. Now, you'll need
to secure those dollars for your project. If you
need to create accounts, round up investors, or
apply for grants or fellowships, there's no time
like the present.

54 digikey.com
 M O N EY, MO N EY, MO N EY

maker.io
FUN D IN G
THE ROUTES TO FUNDINGa The routes to funding
By Alex Lynn, Startups Magazine

There is no avoiding how important and Accelerators, Bootstrapping and towards a successful project. If you
money is to the success of a business. Grants and Schemes. can ensure a decent amount of
As a startup it is absolutely vital not pledges in the first couple of days
Although there are similarities,
only that you get funding, but that of your campaign, then the platform
each one of these options works
you get the best kind of funding for will likely pick it up as a project with
differently, and knowing how they
your business. momentum, and push it on the
all work is important to selecting the
website as well.
There is a plethora of different right one for you.
funding routes you can take, and Crowdfunding also has the added
CROWDFUNDING
each route suits founders and bonus of acting as a proof of concept,
Crowdfunding platforms are
businesses differently. Just because as successfully funding your project
designed to help you get your
one source of funding worked really through a crowdfunding website
company to its goal, however, it will
well or was disastrous for another proves that there is a market of people
not do all of the work for you; it isn't
business, does not mean it will have who want to buy your product.
as simple as creating your campaign
the same result for you and yours.
and sitting back to wait for the When considering crowdfunding, also
The first thing on the to-do list pledges to come in. consider if your product is customer
then, is identifying which source of or business facing, as it might affect
To create a successful crowdfunding
funding is most suitable to you. how suitable crowdfunding feels as a
campaign, you need to put in the
method of fundraising.
The main methods of funding a legwork. Creating a buzz around
startup are: Crowdfunding, Angel your project before you have even It is also important to pace yourself,
56 Finance, Venture Capital, Incubators launched is a great way to work funding a company is a marathon not
a sprint. Instead of attempting to raise VENTURE CAPITAL what they both provide is the skills,
enough to reach your ultimate goals If an angel is an individual, then venture development and network to get
in one single round of crowdfunding, capital is a group. Usually, venture startups interviews with investors,
think about what it will take to create capital can be found from investment and answer the key questions those
a minimum viable product (MVP), banks, financial institutions and larger investors will have.
and make absolutely certain that you businesses. First and foremost, to BOOTSTRAPPING
can deliver that, before promising attract venture capital investors, a Bootstrapping your startup has the
anything else. startup generally has to be willing to potential to either be a fantastic way
sell chunks of the company. to get started, or entirely unrealistic,
There is no reason why you can't
come back and do more rounds of This type of investor is looking for a depending on your personal financial
crowdfunding after the first, but if high potential return from investing situation. Some people simply will
you are unrealistic with your initial in a startup. Therefore, as well as not have the means to finance their
goals and fail to deliver, then you everything that it is important to show startup by bootstrapping, but if you
run the risk of looking unreliable to to an angel investor – such as proof of do, it can be a brilliant way to kick-
future investors. concept – it is also vital to be able to start your business, without having
prove your scalability and ambitious to give away equity.
ANGEL FINANCE
Angels are individuals who agree to but achievable future plans. Using your own savings and
invest in return for equity. Increasingly, earnings to fund your startup is a
angels are beginning to operate
Like angels, venture capitalists gain
equity in return for their investment, risky business, however, it has the 57
through crowdfunding platforms, so when looking for this kind of potential to prove to future investors
however, it is still perfectly possible to funding, startups should consider not – as very few startups could make it
access them outside of crowdfunding. only the money brought to the table, all the way to the finish line solely
but also the skills, expertise, market through bootstrapping – that you
When deciding whether or not
knowledge, and personality of the are both confident and committed
to invest in you, an angel will be
people they are offering a chunk of to your startup. If you can produce a
assessing the founding team, how
their company to. prototype, proof of concept, or even
great the risk is, and what returns
an MVP by bootstrapping alone,
would they be expecting upon INCUBATORS AND
then you are in an excellent position
success. Therefore during a pitch, it ACCELERATORS
to attract external investment in the
is important to allay fears and answer Both of these programs aim to
future.
as many of these questions as you nurture a startup and increase its
can. Because of this, it is important chances of success out in the world, By beginning your funding journey
to have proof of concept before however, an incubator looks to help through bootstrapping, your early
entering talks with angels and doing younger startups than an accelerator. days are spent beholden to no one
whatever you can to tailor your pitch An incubator will help a startup to but yourself, not having to make
to the angel as an individual. stand, whereas an accelerator aims compromises, and in a great position
to teach them how to run. for the future; however, the downside
Another consideration, is that the
of this is that you miss out on the
same amount of money does not An incubator program is geared
expertise external investors can bring,
always represent the same amount towards very young startups and
as well as it being your savings on the
of value. Finance isn't the only thing usually does not run on a set schedule.
line if the business fails.
they can bring to the table, angels Incubators aim to help startups to
also come with experience and pinpoint their core idea, create a GRANTS AND SCHEMES
guidance. So an investment from an business plan, carry out relevant Granted, it is highly unlikely that you
angel with little to no knowledge and market research, and jump any early can fund your entire business just on
expertise in your market, is not nearly hurdles the business might face. grants and schemes; however, make
as valuable as one who does. sure that you look for as many as you
Unlike incubators, accelerators work possibly can, and apply to everyone
STA RTUP S SURVIVA L G U IDE

Ultimately, an angel will be someone on a specific timeframe, and take on you are eligible for.
who you have to work with and has startups a little further along in the
a stake in your company, so making process, and then focus on early Grants and schemes are money that
sure that you share the same – or market validation, achieving proof of does not need to be paid back, taken
at least compatible – visions of concept, and making sure that there from your own pocket, or bought
the future, and that you work well is enough of a market for success. with shares of your company, so
together, can be just as important as there really is no reason not to chase
While neither of these programs after as many compatible ones as you
the money.
are primarily about getting funding, can find.
FUN D IN G
A STARTUP'S FUNDING JOURNEY A startup's
funding journey
By Ruzbeh Bacha, Founder and CEO OF CITYFALCON

There's an allure to the current trend of with a similar amount of money as the previous two
democratisation in industry, based on a cultural and rounds: £205,000. Unfortunately, this was just after
historical desire to give the people what they want. the Brexit vote, and those (depreciating) pounds
Luckily for startups and small-time investors, there has sterling did not go as far as before, especially when
been democratisation in investing, too. These days employing development teams abroad. Nevertheless,
anyone can put a few tens or hundreds or thousands efficiency and prudent business choices led the
of pounds down on a startup. On the receiving side, company onwards to success.
there are also plenty of people willing to take money
The following two rounds, spaced about 1.5 years
for their ideas, some great, some not so great. But the
From £10 cheques to £750,000 investment rounds.

apart, brought in £550,000 and nearly £750,000,

essential point is that people are free to do what they
ensuring we had ample runway for operations, as
want, within reasonable limits. This concept helped us
the revenue base had also grown dramatically in this
launch, helped us survive, and this is our story.
time. The company was big enough to employ more
OUR EARLIEST INVESTORS than 25 people, so the investment money wasn't just
CityFALCON is a single founder startup, so the financing a business idea, it was financing people's
first investor was just me. The stakes were high as lives. And that is one of the most uplifting aspects of
I'd just quit my job at Skype to pursue the dream of the democratisation of startup funding. Anyone with
entrepreneurship. This was mid-2014, and, by the a few pounds sterling can finance a venture and even
end of the year, I had already convinced some friends the livelihoods of others, often generating outsized
and family to invest £200,000. But these were the returns in the process.
low-hanging fruit since my friends and family already
knew me, understood my personality and whether I Those small-time investments also build a type of
was fit for entrepreneurship, and supported me even traction from the investing side. If someone sees a
if the idea was not yet perfect. company with three hundred small investors, they
might conclude the company is strong enough that
From here, though, there was plenty of work to be lay people with less cash to spare believe in the
done, and the company really needed more cash. company. On the other hand, if a billionaire drops
There was a round of angel investment for another £50,000, and that's the only funding, potential
£200,000, which was stretched for over a year while investors might conclude it's a long shot investment.
the company grew. We had built a proof of concept
for BNP Paribas, had built smartphone apps, and Additionally, large investment-VCs often come to the
continued to improve the web platform, but once table with less-than-equitable term sheets, requiring
again, we ran out of cash. It was late 2016, and high returns for low risk, at least when compared to
internet investment campaigns were all the rage. So, the company and the entrepreneur. With ECF, we
that's when we turned to equity crowdfunding (ECF) were able to avoid some of the most extreme cases
on Seedrs. because small investors could make up any shortfall
caused by refusing VCs who insisted on one-sided
GOING TO THE PEOPLE
terms. Democratisation isn't just allowing people to
Raising money is one of the most stressful parts of
participate, it affords participants a collective power
running a business because it is a survival situation:
that is not centred in any single individual.
without the money, the company cannot continue. It
might not even be able to get off the ground. That's THE PROCESS
why ECF has been so important to so many startups, Each round has its own set of challenges. During the
us included. first one, you need to prove your idea is worthwhile. In

58 We closed our first ECF round in December 2016

the second round, you need to demonstrate that the
"Raising money is one of the
most stressful parts of running
a business because it is a
survival situation."
- Ruzbeh Bacha, Founder & CEO of CityFALCON
company is viable, since it didn't become profitable to invest in us. Moreover, because investors can be 59
with the first round of money. By the third, investors almost anyone (from the EU), big ideas from small
are starting to ask why you haven't turned a profit capital don't go unnoticed. Previously, someone
yet and why they should give you yet more money. with an idea may not have been able to participate
But in general, there are a set of steps that apply to because they didn't have the requisite cash or they
all rounds. simply didn't know about our campaign. But now,
connections between investors and businesses are
For new investments, we needed to build relationships
out in the open, exposed to the whole internet, and
first, then prove our worth with properly timed and
great ideas can flow. We've picked up B2B partners
marketed product releases. Then we moved through
because some of our investors were also involved in
a pledge phase, where we got a feel for the market's
other enterprises and thought we might be a match
appetite. Next, we had to plan the campaign itself and
for each other.
solicit people privately. Finally, since we were able to
gain enough traction privately, we opened to the On the other hand, this also meant we were
public, who then helped us reach our goal (and far sometimes dealing with unsolicited ideas that had
exceed it in rounds 2 and 3). non-investment intentions. These could be other
startups looking for business, and we've even
These steps won't lead to a successful fundraise,
experienced people investing in us in order to ask
unfortunately, and a campaign can fail at any one of
for jobs. This can be frustrating when the time is so
these steps. Lots of people think we just posted the
limited, especially in a company with a single founder
campaign on the platform and suddenly everyone
whose time is capped at 168 waking hours a week.
threw money at it. That is far from the truth, and
overnight success is almost always preceded by years LOOKING FORWARD
of hard work. We will remain grateful to the investing public, which
has allowed us to raise more than £1,800,000 over
ECF BROUGHT US MORE THAN
the past four years. We haven't been burdened with
MONEY
excessive regulatory requirements for reporting
A sometimes insurmountable challenge for startups
due to the nature of the investments, which saved
is gaining traction, both from customers and from
us thousands of pounds and countless hours of
investors. In the UK, risk aversion is a strong force,
STA RTUP S SURVIVA L G U IDE

paperwork. Of course, we would like to go fully public

especially right now with the Brexit debacle, and
and list on a stock exchange in the future, but until
that can make amassing investment difficult. But
that time, we are happy to say that ECF has been
sometimes the ECF platforms bring us more than
good to us.
just cold, hard cash. They also bring us a network and
great ideas. We hope we won't need another round of funding
and that our revenue will grow beyond the breakeven
Due to the risk-averse culture, it is immensely helpful
point, but if we do, we can safely turn to ECF for a
to know someone that knows someone. With an ECF
fourth time without any regrets.
platform, we can advertise exactly who knows us,
which means their network might be more inclined
FUN D IN G
A GUIIDE TO EQUITY CROWDFUNDING

A guide to equity
crowdfunding
By Tom Cannon, Portfolio Manager at Seedrs

Raising money is essential to a more suited to B2C companies. and most importantly investment
startup's success. Without cash, a This type of funding is where into the campaign which can pique
startup can't grow. More traditional backers give startups money the interest of other investors
startup funding, such as receiving in return for perks, such as a who might not have heard of your
investment from angel or venture free t-shirt or first access to the business before.
capital investors, is still very much at products when they're ready.
Lastly, there is a common
large. However, the last decade has
• Platforms like Seedrs facilitate misconception that a business
seen a number of alternative finance
what's known as equity either equity crowdfunds or raises
options appear.
crowdfunding (ECF). This is from institutional investors. This
There are a number of ways you where investors receive equity is not the case - you can do both
can raise money for your business, in the business, with the hope simultaneously. Since inception,
from government-backed schemes of achieving high returns in the Seedrs has co-invested alongside
such as The Startup Loan, which future when the business goes some of the most reputable VC
can lend you £25,000 at a fixed on to succeed. firms in the industry, such as Draper
6% interest rate per annum, as well Esprit, Index Ventures, and JamJar
At Seedrs, we specialise in equity
as other options like business cash Investments and Oxford Capital. 650
crowdfunding, and so we thought
advances facilitated by companies institutional investors have invested
we'd give you a few top tips to
like Worldpay. in Seedrs funded deals, with roughly
consider in 8 steps:
60% of deals on the platform having
The rise of alternative finance over
STEP 1 an institutional investor in the round.
the last few years has seen a number
Is equity crowdfunding right for your
of other options appear. Popular STEP 2
business?
routes of SME alternative finance Decide which type of campaign is
funding include debt, equity and Having a clear understanding as to right for your business
rewards-based crowdfunding: why you are looking to raise capital
Seedrs offers three different types of
via equity crowdfunding is key. It is
• On the debt side, platforms like campaigns:
a very public way of raising money
Funding Circle & Zopa give you
and you can engage thousands of Equity - By far the most popular
money in exchange for interest
investors, who will be future brand type of campaign, offering investors
yielding returns. This type of
ambassadors and evangelists. the opportunity to buy shares in
funding is typically suited to
your company.
startups with a proven track The second question to ask yourself
record of revenues. is do you have a community? Your Convertible - This is perfect for a
community and ability to reach them business that knows it is going to
• Platforms like Kickstarter &
is vital to the success of the campaign. be raising a larger round in the near
60 Indiegogo are altruistic and
They provide early support, feedback future. A convertible is short-term
debt that converts into equity upon the future isn't any good, clearly date whilst presenting a clear route
the closing of a follow on round of what an investor is willing to pay to future growth. Investors should
financing. for the company's equity is going to gain a sense of who a founder is,
be substantially reduced in spite of where his/her passion lies, why he/
Funds - If you are an accelerator
whatever successes the company is she started the business, and why
or incubator, you will run a fund
currently having. it could become the next big thing.
campaign. When someone invests
Research other successfully funded
in a fund on Seedrs, they become a Experience - Your team – founders
campaigns for ideas to help you
shareholder in each of the underlying experience and skill set, founders
stand out! A few key elements:
businesses that the relevant fund flexibility, completeness of the
organiser or manager chooses. management team all contribute to Idea
the make-up of a high profile team,
STEP 3 Bring your business to life and get
which in turn enable the business to
Select a dedicated person to manage/
own the campaign
command a higher valuation.
people feeling as passionate as
you do. Give an intro to what your 61
Stage of development – If a business business does and who you are.
Raising investment in any form is
is still just a concept then clearly it is
really hard work, but even more so Intended impact
unlikely to get the same valuation as
with ECF. It's important to have a
a company that has a product in the What solution does your business
dedicated person managing all the
market with a user base. create? Talk about existing gaps in
activities that surround the campaign.
There is a strong correlation between the market and how your business
Traction – Every customer
prompt responses to investor fills those gaps.
contract and relationship needs
questions within the discussion to be monetised, even ones still Substantial accomplishments to date
forum, and that investor going on to in negotiation. If a company is
invest in the business. gaining amazing traction, this will Shout about your achievements - use
demonstrate to investors that the key support materials such as data,
STEP 4
business has potential and could revenue, media coverage and awards
How to value your business
result in a higher valuation. to really showcase your credibility.
Some key pointers to bear in mind
STEP 5 Monetisation strategy
when valuing your business:
Start creating your campaign
How do you plan to generate
Market Forces - One of the biggest
Your campaign page is one of the revenue? Investors want a future
determinants of a startup's value
most important aspects to ensure return on their investment.
is the market forces of the industry
you succeed in ECF. It's unlikely
in which it plays. When an investor Use of proceeds
you will be able to meet all your
is trying to determine whether to
prospective investors face-to-face so How are you going to use the cash
invest, they basically gauge what the
you need a compelling written pitch, - how do you plan to grow the
likely exit size will be for a company
a three minute video to accompany business with your new funding?
of your type and the industry it plays,
it, alongside any key documents
then judge how much equity they Market
you can share e.g. financials, pitch
need to invest to reach a ROI goal.
deck etc. With an average of 25 Who is your target market and what
Industry - There are certain 'hot' campaigns live at any one time on
STA RTUP S SURVIVA L G U IDE

are the characteristics of this market

industries out there (i.e. fintech / ECF platforms, you need to stand (size, distribution, behaviour, scope)?
sustainability / AI / healthtech), which out. Communicate concisely what
can command a higher valuation your company does, its market Marketing Strategy
than another company at the same potential, its intended impact and
How are you going to reach your
stage in a different industry. how you will use the money raised
target users or customers? Get
to scale.
Market size – If operating in a space colourful and describe how you plan
where the market for your industry It's a top line business plan that tells to raise awareness of the business
is depressed and the outlook for a story, highlighting achievements to and attract new users.
STARTUP S SURVIVAL GUIDE Competition Strategy investment, market size, current relationships with any angel investors,
success, competition, scaling options, then you will certainly want to create
Who is the competition and why do
investor testimonials as well as why a tailored email for outreach. If you are
you blow them out of the water?
your team can take the business to approaching professional investors
Give investors an overview of the
the next level. for the first time, then you will need
competitive landscape so they can
a professional pitch deck to send in
really understand the scope. Call to action – End with a clear
advance of setting up a meeting.
closing statement summarising your
Providing evidence
offering. Outline the future of your Your extended network – This
Make sure everything you say is fair, company and the investor's potential group will include people you
clear and not misleading. Platforms contribution to it. have previously worked with, your
like Seedrs have a responsibility LinkedIn network, people who work
STEP 7
to investors to ensure that the in relevant industries and other
Create a marketing and PR strategy
information that they read in each people within your email list.
campaign complies with FCA Considering who you want to
Media - getting the word out about
financial promotion guidelines. communicate with is key. Marketing
your campaign is really important.
and PR around your campaign
STEP 6 Spend some time looking at which
can really help build awareness
Create an engaging video journalists from newspapers and
and traction. Before sending any
online publications write about
Crowdfunding videos don't have communications, draft an outreach
crowdfunding and startups. Start
to be expensive, but they're very list to manage when you are
engaging with them on social media
important, so it is crucial to get them speaking to potential investors in
and follow what they are writing so
right. This is an investor's chance an orderly manner, avoiding any
that when the time comes you can
to get to know you in a 2-3 minute repeated conversations or missed
send a personalised pitch to them.
window. A video should be slick, opportunities. Outreach categories
engaging, insightful and sincere. include: STEP 8
Tell your story and talk about your Going live
Family – these people are highly
service/product and its market
likely to invest in your business, but Private Campaign: Only people with
potential to remind investors why
are unlikely to have a Seedrs account. the URL to your campaign will have
they should back you. Good practice
Ensure that your contact with them access at this stage so it's not public
is to watch a number of previous
makes it clear how to sign up and to a wider audience. This let's you
crowdfunding videos for inspiration
invest on the platform. manage the launch in a controlled
and gauging what sits well with the
way. Keep the timing tight, only stay
Seedrs investor community. Here are Friends – This group may need to
in private for 3-5 days. When you
our tips on what you should include: be split into smaller cohorts (close
launch your private campaign plan to
friends, acquaintances etc.) in order
Product demo – a quick teaser invite everyone who pre-registered
to tailor more specific emails to them.
providing an intro to your product their interest and the outreach lists
Similarly, you will need to instruct
lasting no more than 30 seconds in you prepared. Getting 50 to 100
these recipients on how to sign up
length. Ideally the first 10 seconds investors whilst in private is a great
for an account.
should show your product, the next starting point. This will, ideally,
10 should explain it and the final 10 Customers – Getting your customers generate early momentum into the
should offer a quick overview of key or suppliers is a great way to build campaign before you go public.
features and USPs. relationships. If they have invested
Public Campaign: This is where all
in your business, it is highly likely
Why – show investors your founding your hard work pays off and your
that they will want to maintain the
team and tell your story, cause or campaign is visible to a wider pool of
relationship in order for the brand
belief. This is the human element investors. You've already reached out
to grow. You might want to discuss
and it's so important to explain why to your direct audiences, so this is
a pre-registration with Seedrs if you
you‘re doing what you're doing. when you want to use marketing and
have a large community.
PR to drive a new audience to learn
How – Use this part of the video to about the business opportunity,
Previous investors – People who
explain how your product/services whilst remaining active in the
have already invested in your
solves the problem, how it works, investor community – attending and
business are reliable for follow ons if
and demonstrate any customer pitching at events is a great way to
you have demonstrated growth since
testimonials you might have. keep up momentum driving potential
they last invested.
investors to your campaign.
62 What – Here you can discuss the
VC's and Angel investors – If you have
From Maker to Market: 06
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maker.io
STARTUP S SURVIVAL GUIDE

07
MARKETING

Makers are a passionate group, inspired by

their surrounding and buoyed up by creativity
and creation. That passion can sometimes
shield a maker from the reality that their idea
isn't nearly as interesting to others as it is to
themselves. It's time to generate buzz amongst
the outside world.

64 digikey.com
 TIME TO G O VIR AL

maker.io
MAR K E T IN G
TAKING YOUR FIRST MARKETING STEPS Taking your first
marketing steps
By Anna Flockett, Startups Magazine

When it comes to marketing a startup, there can what we do, this is how we do it, this is how easy it
often be some misconceptions such as it being too is for you to use, this is how it will change your life
soon to start thinking about, or your company is too for the better, and here's a voucher off your first try."
small. Some people think marketing isn't a priority and
And how do you do this exactly? Gash said: "Do
budget should be spent elsewhere (something that
loads of market research." This means putting aside
bigger corporations also fall foul of), or that any type
the time for some marketing work, no matter how big
of marketing is good. Well we are here now to teach
or small the team, and work on the personalisation
you why marketing is so important and what steps
of your product, making sure the product fits in the
you should be taking.
right market, and importantly make sure the strategy
HOW DO YOU KNOW WHEN YOU is always aligned, and everyone on the team is on the
ARE READY FOR MARKETING?
same page.
Marketing is not all about the huge adverts in the
press magazines, or prime time TV adverts. The word Then it comes to the right approach. One of the most
marketing actually covers a vast range of actions, effective channels to reach your existing or potential
and realistically if you are past the design stage you customers is email marketing. Gash explained: "No
should definitely start to think about what marketing one goes on to a website once a week or month, but
path you are going to take. people do check their emails every day so this is one
way your company will be kept front of mind."
Speaking to Alex Gash, Co-Founder at Marylebone
Difference Marketing, he clearly stated if you are People often underestimate the power of email
raising early stage capital you should have a marketing marketing but in the beginning it can be one of the
plan in place. "Even if it is just a topline marketing most powerful tools that sets your marketing journey
strategy, you need to think about your marketing off in the right direction, especially for startups.
objectives and how you're going to get there. I
DON'T BE FOOLED…
sometimes recommend using the Lean Canvas one-
It is important to remember that marketing is about
page business plan template, created by Ash Maurya,
intelligent targeting, not a scattergun approach.
as a way of deconstructing ideas and assumptions
It's quality not quantity. "It's about focusing on the
about your business, to make you think about your
channels that work for you. Analyse the performance
marketing in a different way."
and optimise, i.e. quickly adjust and adapt if you're
Marylebone supports the startup and scale-up not getting the ROI (Return on Investment) you need
ecosystem by helping keep costs down for businesses, to win customers and additional revenues," said Gash.
offering tiered marketing and PR packages, and Gash
Rix added: "Not every startup is destined to become a
has also had previous experience with the startups
Unicorn: but clever use of your marketing budget can
industry himself.
at least ensure that you thrive and grow, even if you
WHERE DO I START? don't hit the magical $1bn valuation."
Gash said: "You need to know your customers, and
You need to be mindful when it comes to traditional
know you are targeting the right people." By really
mass marketing, even when it's online, as it can be
nailing down your target customers you will then be
very wasteful for some startups. Rix expanded: "You
able to build the right product for them, so start with
need something cost-effective right from the start to
identifying the following: Who your customers are?;
give yourself an initial boost."
What price they will be willing to pay?; What business
model you will be using?; Is there a big enough market TOP TIPS?
for what you want to sell? He can appreciate that running a startup company
takes a lot of time and effort, and you probably have
James Rix, Founder of StreetPR, part of Crowdify
a million and one things to do, but Gash stated one
Global said what you need to begin with is an
of his top tips would be to make sure you put the
66 education and activation campaign: "Explain this is
foundational work in when it comes to marketing.
"Don't build your product, service or company in in your marketing and PR effectively, then the first
secret. Make sure you're always communicating with time people hear your company name won't be in
your potential audiences and customers across all connection with a major nightmare that you'd rather
your owned channels. Take them on the journey with nobody knew about."
you, as you build your product and community."
It is important that if you say you're going to deliver
Start with the bare minimum, because if you don't do on a marketing plan, actually deliver, do not hang
that no one is going to know who you are. Building up about. Gash said: "Your competitors are likely to be
relationships with the press and your core customer proactively marketing, so you need to keep an eye
base is very important. on what they're doing, but you really need to focus
on what you're trying to achieve. Set benchmarks,
He continued: "PR is one of the most powerful and
Key Performance Indicators (KPIs) or Objectives and
cost-effective tools you can use to build awareness
Key Results (OKRs) to keep you on track, be creative
and credibility. But don't just use it to announce
and true to your product and company mission. That
your latest fundraise. Talk about your startup story;
way, you'll stay ahead of your competitors at any
your team; your roadmap; your mission and how
given time."
you're going to get there. You'd be surprised how the
momentum can quickly build from getting coverage In this digital-first world, other core marketing skills
in the trade media, to getting noticed by national and include Search Engine Optimisation (SEO) and Search
international top tier titles." Engine Advertising (SEA) to ensure that your company
and products appear at or near the top of Google.
67
It can be boring reading the same thing over and
over again, people want to know what you're doing is "You can improve your SEO by investing in content
different and how. "It is about finding the stories that marketing, video and social media. Also, double-
the industry can cling on to," Gash added. check every one of your webpages to make sure the
SEO is as good as possible; a surprising number of
Jane Henry, Co-Founder at Marylebone Difference
companies miss this step," said Gash.
Marketing explained in a recent blog, PR can be a tool
to help protect your startup from bad publicity that The key is to start advertising, or push advertising
could end up destroying your reputation, or worse, when things are going well, using it as a tool to boost,
shut it down. not to try and recover when things might not be
going to plan. Marketing is about trust. People want
You could find yourself in a situation where it is a PR
to trust in you, trust in what you are advertising, and
strategy that keeps your customer base onside while
trust in your product. Remember: A business without
you fix the situation. If things do go wrong – don't
marketing is like smiling in a dark room. You know
panic. Gash said: "Every company encounters issues,
you're doing it but no one else does! Marketing is an
but the good news is that if you've been investing
investment but it does pay off in the long run.

STA RTUP S SURVIVA L G U IDE

MAR K E T IN G
THINK OUTSIDE THE BOX Think outside the box
By the Alias Robotics team

At 27 years old, David Mayoral (pictured above) is the international recognition for his entrepreneurship
CEO and founder of Alias Robotics, located in Vitoria- when he joined the elite membership of Forbes
Gasteiz, Spain. Alias Robotics is a cybersecurity firm 30 Under 30 Class of 2019. Although Mayoral has
focused on robots which provides assessment on experience and success as an entrepreneur, he said
how to build, program and deploy robots while caring that his journey has not been without challenges.
about safety and security.
According to Mayoral, strategic team building is
Alias was formed to create the first Robot Immune crucial to the overall health and success of any
System (RIS) as a form of cyber security for robots startup. Now that Alias is established and growing, he
after David found a gap in the market and potential to happily admits that applications come in regularly, but
make an impact on the robotics industry. says that wasn’t always the case. Mayoral said, “In the
beginning, finding the right people was is a challenge
Alias is the second startup for this young and influential
in itself, convincing them to believe in a ‘crazy idea,’
entrepreneur. In 2014, at 19 years old, David and his
which required starting a new career was something
brother created Erle Robotics, which has since been
else entirely.”
sold to a Swiss Multinational, Acutronic Robotics.
Growing the team at Alias required patience, finding
Aside from creating two companies, David gained
the right people, immense confidence in an idea,

68
"Startups need to be creative
and develop a unique
marketing strategy."
- David Mayoral, CEO and Founder of Alias Robotics

69
and strategic execution. Mayoral finishes by saying “I put myself out there,” said Mayoral, “in this business
that, “Our team is strong but continuously growing a personal win can be converted into a company win.
as Alias expands.” Another challenge has been putting For example, when I became a member of Forbes 30
Alias in front of its clients. Under 30 back in January, I took advantage of the
interviews, platforms, and networking events and put
“There’s a huge demand for our services,” Mayoral
Alias in the spotlight as well.”
explained, “but it requires a willingness to make
sacrifices and enough money to do so. I’m constantly The last core challenge for any startup is obtaining
travelling and that means less time with my family, substantial funding. Mayoral stated that they’re
adapting to the schedule of each country I’m in, and currently in the process of closing their seed round.
having a large travel budget.
“Receiving funding, especially in the beginning, is
"Just this year my meetings have taken me to The similar to convincing someone to leave their job to
United States, Romania, Germany, and The United start a new one at Alias. It’s a risk and I need them to
Kingdom. The opportunities in each country are believe in the idea, the company, and in me.” Alias has
great, but the cost of travel, the flights, and the time been self-funded and received capital from various
differences, not so much.” investors, but more funding is needed to take the
company to its next stage of growth.
Mayoral explained that he is able to stay balanced and
energised by taking time for himself, knowing that he Every startup has to have three things, said Mayoral,
can rely on his team, and having passion for what they need a purpose, a team, and funding. “In
Alias is accomplishing. our case, our purpose is to create a bio inspired
hardware solution. A solution that mimics the
Aside from team development, Mayoral also explains
defensive principal of the human immune system
that startups, such as Alias, have to think outside
in order better protect robots from various cyber
the box when it comes to marketing. When Mayoral
security threats.
was asked about marketing strategies at Alias he
responded, “If resources are more limited, marketing "Regarding our team, it is continually expanding
STA RTUP S SURVIVA L G U IDE

at a startup is very different than at an established firm. and made up of talented individuals from diverse
Startups need to be creative and develop a unique backgrounds. Each member offers an area of expertise.
marketing strategy in order to promote themselves.
"Lastly, our short-term funding has been established
We (startups) often don’t have the funding to go to
and we are working on securing the investment
top PR firms to gain publicity.”
needed to meet our long-term goals.” Mayoral knows
Mayoral and his team are building brand awareness the challenges of running a startup, but has a proven
by participating in networking events, using media track record of defeating entrepreneurial challenges
such as LinkedIn, speaking on the radio, and engaging and leading companies and his team to success.
in interviews.
MAR K E T IN G
GROWING A COMMUNITY AROUND YOUR STARTUP

Growing a community
around your startup
By Richard Ling, Co-Founder of Paved With Gold

You may have a groundbreaking idea but it's so they like? What social media channels do they use?
important that you're able to grow a trusting, happy Use this to understand what content they like and
and engaged community around it. This will help you what stories resonate with them. Feed this into your
grow awareness, stand out amongst competitors and content and social media strategy.
ultimately lead you to become a sustainable long-
Another key thing to discover is who they follow?
term business that goes beyond any hype.
Remember, an ‘influencer' doesn't have to have a
Your initial marketing efforts mark your first steps huge following, they could be an expert, a leader of
into connecting and communicating with the outside a relevant community or someone who openly shares
world and making sure people take note. Here are the same values. When you're starting out, and
some important things to think about as you start to especially if you have something never seen before,
build your presence online, market your offering and it's incredibly important to make your audience feel
grow your community. like they can trust you. You might not have many
reviews or much awareness of your brand so having
1. GET OUT THE DOOR
someone your audience respects on board can really
Before you do anything else, you need to go out there
help you build trust from the start.
and talk to potential customers about your idea (yes
in real life!). It'll help you see the things that people 3. GO ABOVE AND BEYOND
are really excited about, help you find your position Make sure that any customers or followers that join
and understand what makes you really stand out. you are treated like gold. Every touch point needs to
be a super positive experience, from your website,
As you dive deeper it's really important to learn
to emails, to content, to when they first try you out,
about the type of people that are interested in your
and especially when they get in touch with questions,
project, and of course, identifying those who are
problems or complaints. It's hard work getting
willing to spend money on what you have to offer.
your first customers so be sure to go beyond their
For innovations and firsts, you'll benefit from also
expectation so that they'll leave positive reviews and
identifying the cross section where early adopters
recommend you to others.
exist as they'll be easier to convince at first. It's
a mistake to go for everyone, make sure you're 4 . MAKE THEM FEEL PART OF IT
targeting a smaller engaged audience to get the most They were the first to try you out, through any snags
out of your efforts. you were there right on call to make things right. They
provided you with important feedback and you took
2. FIND YOUR AUDIENCE AND GET
their ideas on board to make your business better.
THEM TO TRUST YOU
Moving forward you need to keep them engaged
As you grow your understanding of your audiences,
and feel part of the community. Keep in touch by
develop detailed personas that include not only
sharing relevant content through a blog, on social and
who they are but where they hang out online. Think
70 about what publications they read? What brands do
through newsletters.
 71

Make sure you don't just broadcast about yourself, can help you find ways of reaching your community
share feedback from your community, talk about that your competitors did not think of yet. Just be
other relevant projects and brands, share things your sure to track results to make sure what you find
audience are interested in. Your aim is to position works continues to work, and so that you're able to
your business as a thought leader or important voice understand why new strategies are resonating.
amongst your wider community.
7. H O L D O N T I G H T !
5. GO BIGGER Growing a startup is a wild ride, there will be many
Once you understand what resonates you'll want to twists, bumps and turns along the way. You'll need
try turning things up. Spending a little more working to be perceptive, intuitive, creative and have a whole
with others that will help amplify your brand. This lot of persistence. With a startup many things won't
can be partnering with paid influencers to create go to plan or along the timeline you've planned out,
more compelling content, collaborating on an exciting it's important to always focus on making the most
campaign with other relevant brands, or developing out of a situation and not getting caught up in what
a newsworthy campaign to help position or grow went wrong.
awareness around your brand.
Your product is important but you'll need to work
For the most impact, try and align these efforts hard to get people to it and convince them to try it.
alongside important dates around your audience's Growing your brand and making people feel part of
STA RTUP S SURVIVA L G U IDE

calendar. Like targeting sci-fi fans by collaborating your community will help you attract new customers
with Marvel and launching it at Comic Con. Or getting as well as keep a loyal following. Experiment and track
a bunch of developers together at a conference to to find out what works with your community. Keep
play about with your new tech. it together when things feel too much and focus on
what lies ahead. It's important to be positive and see
6. GET CREATIVE
the road ahead is "Paved With Gold". That's definitely
Follow the numbers and double down on what's
something we've always focused on through our
working but to stay ahead of the game you'll need
experience so much so that we turned that mantra
to get creative too. Sometimes it works to take the
into our business.
road less travelled instead of the well-beaten path. It
 From Maker to Market: 07
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72 maker.io
STARTUP S SURVIVAL GUIDE

08
PRODUCTION

Ahhh, production time. The sweet smell of

your final BOM in the air; you're ready to start
making some serious decisions. First, you need
to decide what demand might be — how
much should you order?

74 digikey.com
 IT 'S D ECISIO N T IME

maker.io
PR O D UCTIO N
NOW THINGS GET REALLY EXCITING Production: Now things
get really exciting
by Joe Bush, Startups Magazine

Now things get really exciting. It is also important to validate "Unfortunately, in most cases
You've conducted all your your processes and the product there is not an obvious ‘best'
preliminary research, done early, so that changes or tweaks path, but rather a number of
your design and evaluation and can be made before they are routes, each with their own
achieved your required amount set in stone and become costly advantages and disadvantages.
of funding. It's now time to to change. In short, as Alex Your decision should rest on the
actually make your vision a reality Millington-Jung, Startup Lead at technical specification of your
and move into production. design and manufacturing firm product, how many units you
RPD International, explained: need to make and how much
It's time to make some serious
"Production is all about attention time and effort you can afford to
decisions around Bill of Materials
to detail and your ability to dedicate to production."
(BOM), order quantities and
communicate and manage."
level of demand, and the Millington-Jung went on to
manufacturing supply chain Production is not something you explain that the first decision
(board houses, manufacturers, should only consider when you're you have to make is what
assembly houses, etc). It is ready to go to manufacturing. relationship you want with your
of course crucial that the Advice from potential production supplier. You're faced with three
manufacturing process is partners should be sought at the options: (1) source and manage
designed to not just build your earliest possible time. It is very your supply-chain, (2) work
product, but to produce it to common to see startups get to with one supplier who either
the quality required, the correct the point of production and then manages sub-contractors or
quantity and at the right cost to realise all their hard work doesn't has the capabilities to develop
succeed in the long term. make sense at scale. everything in-house, or (3)
work with a partner to manage
This means that you should Maja Köberl, Co-Founder of
production for you. This decision
be prepared for some design Voxos, a startup producing
should hinge on your team's
changes. Startup projects start wearable smart glasses,
manufacturing competency and
with a vision, and it's that vision commented: "We had an idea
how much resource you can
which drives the design stages in mind, which we wanted
afford to invest, both financially
forward. However, there is a far to turn into a product. This
and in terms of time.
more practical element to the is easier imagined and said
production process, and what than done. We had to find the WHERE?
has been thrashed out during right manufacturing partner So the next stage in the
the design stage may not be that was able to produce the production process that you
feasible in reality, so startups product the way we wanted. need to consider is the ‘where'.
need to be flexible to change. When developing something Scott Miller, CEO of Dragon
Feasibility issues can be ironed completely new that does not Innovation, a company that
out during prototyping and with really exist in a similar form factor, specialises in taking companies
CAD simulation. there is not really a norm you can from prototype to production,
align your production with. So highlighted that, for consumer
These changes may impact electronics, the rule of thumb is
we had to spend a lot of time on
the actual manufacture of the that if you want to manufacture
finding the right manufacturing
product to make the process more than 5,000 units then it
partner that understood our
easier or to offer a greater level makes sense to look towards
values and was able to share the
of support further down the China. If production volumes
same vision."
line, or it may be to improve the are less than that it's better to
actual features of the product for "There are a number of manufacture in your own country
the consumer (which hasn't been potential production pathways," or at least nearby.
76 considered before). Millington-Jung continued.
The majority of consumer and significantly cheaper than air with them and developing
electronic products are Cost of freight. IP is also easier to control a relationship and a real
Goods Sold (COGS) sensitive domestically due to stronger partnership you can give them
so once companies start to get relationships with the factory. confidence that your business is
into the higher unit volume then going to take-off."
"Don't assume that you should
China begins to have an edge
instantly go to China. Think A company will then need to
due to labour rates.
through your process. For a analyse the results, pick the top
"There's also really strong consumer electronic product two factories and negotiate on
knowledge in China in terms of it's in truth, probably the right the big items. This will include
designing for manufacture and choice, but it shouldn't be a looking at the different margins,
assembly." Miller added. Factories knee-jerk reaction," Miller added. the payment terms that will
can provide tremendous determine the operating capital
WHO?
domain expertise and can offer you need, and a list of the five
Once the geography of
assistance in how to make a most expensive components in
manufacture has been
design mouldable, how to reduce your product to try and negotiate
established, the next phase is
the number of components used, down. It's important to remember
what Miller described as the
and how to shorten lead times by that prior to selecting a factory
most important part of the
selecting different components – the startup has real leverage. The
production process – picking a
getting factory partners engaged
factory, and he explained that
minute you start working with a 77
early can be a real advantage. factory, that disappears until you
there is a clear definitive process
start shipping goods and have the
Speaking at the Fortune Global to ensuring you make the right
ability to go to another factory.
Forum in 2017, Apple CEO Tim choice: "Step one is establishing
Cook succinctly summarised this who the factories are in your Once the winning factory has
point when he said: "The popular cohort that you would consider been selected it's important to
conception is that companies for the job, so talk with trusted leave the other ones on good
come to China because of network connections who have terms because you may need to
low labour cost. The reason manufacturing experience." dual source production further
is because of the skill and the down the line so it's a good idea
You should then create a shortlist
quantity of skill in one location." to keep the door open.
of around five to ten contract
However, manufacturing on the manufacturers who are qualified. MANUFACTURING
From there you need to narrow TRIANGLE
far side of the world does have
it down to three to five based When entering into the
some downsides. The challenge
on your product category. You'll production process Miller
you face is communication and
then need to create the Request highlighted the importance of
cultural differences. You must be
for Quote (RFQ) package, and the manufacturing triangle, the
prepared to be on the ground to
get the factories under a Non- key factors of which are costs,
micro-manage pre-production
Disclosure Agreement (NDA). quality and schedule. "Starting
and early production. The
with the cost of goods sold
distance to China means that
Miller then highlighted the (COGS) – this is basically what
shipping costs time and money so
importance of getting boots on you pay the factory to buy your
that will also need to be factored
the ground in terms of factory product and it's something in
in. Miller added: "If you have a
visits, to understand the team consumer electronics you want
product that someone can order
that is going to build the product to control," said Miller. "If you
today and get tomorrow then
and to develop a relationship. can achieve a good BOM, you
you either need a really robust
"Good factories are like venture can build a great business, but
supply chain and logistics, or you
capitalists," Miller added. if you're losing money on every
need to build locally."
STA RTUP S SURVIVA L G U IDE

"They have limited funds and product you ship then you won't
Local manufacturing is great for opportunities and they want to last long."
lower volume products as it's work with super high growth,
high potential companies, and In terms of schedule it's important
much easier to control. If you
as a startup you probably don't to have a firm date of production
need a shorter, tighter supply
have a big brand name, and you that is not going to move. If you
chain, local manufacture is
probably haven't built hundreds do miss it then you throw away
much quicker, more responsive,
of thousands of units, so you're an element of revenue so it's
logistically quicker than shipping
a risky bet in truth. By meeting important to understand how
from the other side of the world
long things can take and then
STARTUP S SURVIVAL GUIDE take corrective action early if products, or whether something "Hard metals and steels will last
it's not going according to plan. needs reworking. "And that longer in general, but a well-
Miller added: "Remember, hope decision has a profound impact made bridge tool made out of
is not a strategy. It's important on the success of your business aluminium for example, can last
to get things right the first time, – if products get returned then many thousands of cycles.
because you may not get a it's a major dent to your brand
"So given an anticipated sales
second chance." and one that a startup may not
rate it's important to consider
recover from," Miller added.
Miller added that with something how much time this provides
like crowdfunding, people are TOOLING and if an alternative option
essentially investing in a product There are several options exists – such as lifetime tool
that doesn't exist. This is fantastic available to startups which can maintenance support – before
in one regard as it shows that make the production process steel tooling is needed, because
there is faith in the vision. easier. On-demand production with steel tooling it's usually a
However, startups can jump or bridge tooling can provide a capital expenditure that has to
into it and be so focussed on link between prototyping and be written off over a number of
the marketing, the look and feel serial production. Bridge tooling years. So maybe a lower cost
of the product, that they don't is also known as development tooling/higher part ratio may be
think through the manufacturing tooling or rapid tooling, and the best way forward."
process properly. "They can defines a stage in development
where there is a need for Dyson added that when
achieve their funding goal only
moulded parts but production parts start to come out of the
to realise that they need more
tooling is unavailable. Its name tool, they are often left in an
in order to make manufacturing
comes from the fact that it forms unfinished state so will need to
a reality, which is then hard to
a bridge between prototyping be finished. This adds costs and
recover from," Miller said.
and production. time, so tooling should be set up
"Your backers can really turn to eliminate as much of this work
against you, and your biggest There are a number of instances as possible which will help the
supporters can be your biggest where bridge tooling is useful. company move more easily from
detractors if you ship late. The For example, if the final product prototyping to production.
way to look at crowdfunding is material is essential for the
evaluation process; if the "Another thing to consider is tool
like a chainsaw – if you know
quantity of parts required makes modification," Dyson continued.
what you're doing it'll make short
prototyping uneconomic; if a "Aluminium is a soft metal and
work of the problem, but if you
trial batch is required prior to easily modified, but it is costly,
don't you'll cut off your leg." To
product release; if the design is so it's preferable to freeze
this end Dragon Innovation has
not sufficiently stable enough design prior to cutting metal. It's
created Dragon Certified, which
to allow production tooling; or important to remember that if
has been designed to help you
if the parts required are too low you develop strong ties with your
understand how much you have
to warrant production tooling manufacturing partners then you
to raise for manufacture, how
manufacture. Often on new can discuss this in advance."
long it's going to take and from
the design point of view, how projects, quantities are far from
Dyson commented that there are
close you are to being able to certain, making justification of
some additional issues to consider
hand over to the factory. tooling spend difficult. Therefore,
during production that can be
bridge tooling allows startups to
overlooked due to pressure on
The final part of the dip a toe in the water.
time. And to hit the manufacturing
manufacturing circle is quality.
However, when moving from start button factories usually
Miller continued: "Everyone
bridge tooling or small volume to need a commitment from project
thinks about cost; most people
serial production, it's important sponsors, leaders or senior
think about schedule; but nobody
for startups to consider tool managers upfront. "Quite often
tends to think about quality until
longevity. Protolabs is a this isn't done and is skipped,
it's too late so it's something to
company that provides rapid production is commenced too
prioritise from the beginning."
manufacturing of low-volume early and things like ordering
When you get the call from
parts for prototyping and short- machines, parts and other
the factory saying your product
run production. The company's investment can be missed.
is ready, the one question a
EMEA Special Operations Packaging, shipping and storage
startup needs to ask is whether
78 they are going to accept those Manager, Steve Dyson explained: are also stages often missed."
Understanding
embedded
systems
By Giorgio Mariano, Strategic Marketing Manager
for STMicroelectronics Americas Region

79

Tech startups, whether launched in a garage, from

a kitchen table or a university classroom, usually
have at least one thing in common – designs
requiring hardware, software, and an embedded
system to control and command them.

Through a variety of ways, semiconductor

companies like STMicroelectronics want to get
their products into the hands of those nascent
entrepreneurs as well as to help make a tech
startup’s job manageable. While testing the
STA RT UP S SURVIVA L G U IDE

waters of the supply and demand world, students

and startups get a hand up from programmes
and competitions focused on helping them
navigate their applications into and through the
embedded world.

Here’s how.
STARTUP S SURVIVAL GUIDE

Embedded systems are everywhere, controlling board, which ST has made easily accessible through
many of the devices you own – your smart open source code and online documentation.
watch, your smart phone, and the smart devices
The eight-part, self-explanatory course that
in your car, among many others.
Professor Kaiser created, Introduction to
Wikipedia tells us they are controllers Embedded Systems with SensorTile, guides
programmed and controlled by a Real-Time students through opening source files and
Operating System (RTOS) with a dedicated manipulating code, even without an extensive
function within a larger mechanical or electrical knowledge of C (a general-purpose computer
system, often with real-time computing programming language) or a background in
constraints —and since this is within the computer engineering. And there is no need to
complete device like your smart watch, it is attend UCLA to take the course; it's free and
called embedded. available online, and the SensorTile kit you need
for the coursework is around the price of a college
Our lives are increasingly enhanced by embedded
textbook at less than USD100.
systems and the devices they control. And the
market for such devices is only bound by the As UCLA students began to post their projects
creativity of their makers. online, the success of Professor Kaiser's course
inspired another professor to follow suit.
Knowledge of the hardware itself may only be
half of the challenge in such endeavours; what if In the autumn of 2018, Jose Luis Ramirez Herran
you want to design a new wearable blood oxygen of the Harvard Extension School integrated
monitor or a pulse oximeter? Are the intricacies the online course to feature in his course for
of light sensing a skill in your portfolio? Do you Masters Students of Digital Media Design. He
understand how sensors work? How does one wanted to help creative students express their
combine a hardware architecture with a software ideas through an accessible prototype, and the
solution? SensorTile fitted the bill.

Questions like these led UCLA Professor William One application of this creativity was based on
Kaiser to design a course introducing the the concept of synesthesia, which is where the
fundamentals of designing embedded systems occurrence of one sensory or cognitive experience
with sensors. And not just any embedded system leads to a simultaneous secondary experience, as for
with sensors: He chose to use the SensorTile example when the colour blue triggers the sense of
evaluation board and development kit from taste of peanuts or the smell of flowers.
STMicroelectronics.
One student project used the microphone and
WHY THIS BOARD? Bluetooth features on the SensorTile to stream audio,
SensorTile is an incredibly dense sensor board and by applying a common algorithm, transmitted
with more useful hardware on it than you probably the sound as colours. This application was intended
could use for one application. And this is one of for entertainment or to help those with hearing
the factors that makes it integral to the course: impairments experience sounds in a visual way.
students can design any number of applications
for real-world problems that can actually end up The existence of such coursework – and the
enhancing lives. SensorTile - allows anyone, from student to startup,
to learn more about Embedded Systems in general,
In a footprint smaller than a regular US postage and in particular about sensors and microprocessors,
stamp—13.5mm x 13.5mm — this embedded how they work, and how they can be used to
system includes a microcontroller, an inertial contribute to the disciplines of their art, their
sensor for measuring movement, an eCompass for business, and their lives.
determining direction, a barometer for pressure
sensing, a miniscule microphone, as well as a
Bluetooth processor for connectivity. Professor

80 Kaiser's course makes use of the development

Scalable and
industrialisable
By Giorgio Mariano, Strategic Marketing Manager
for STMicroelectronics, Americas region

You may be a university engineering student, seminars and webinars offered by established
professor, graduate student, or a retired engineer. electronics companies to help engineers
You've taken the leap and done the research. solve specific design challenges. Distributors
Your technology has traction, your embryonic of electronic components are also reservoirs
company has legs, and you are pumped for the of ready-to-hand resources for engineering
marathon of starting a business by building and startups with specific prototyping needs.
marketing your solution.
Potential startups have two primary
81
Whether you are tweaking an existing electronic considerations when designing a prototype:
product or developing one from scratch, you'll "make it scalable and make it industrialisable."
need a team and partners in the tech world
Designing and manufacturing an electronic
to coach and run with you. One approach to
prototype whether it is a wearable, an
consider is a design competition.
automotive enhancement like in-vehicle
Major suppliers often sponsor competitions, like connectivity, or an Internet of Things (IoT)
the Wearable Technologies Innovation World device, demands a certain set of skills as well
Cup - or offer their own - and are good sources as the discipline to keep things as simple
for the development tools, evaluation boards, and as possible, cost-efficient, and robust: i.e.
components for entries based on their products. industrialisable.

In addition, they generally have built valuable Finding complementary experts who can
ecosystems containing libraries and more, supplement your contributions, whether in
including reference designs and more engineering, manufacturing, marketing, sales,
sophisticated development tools. or customer support, are not merely items on
a wish-list, they are basic requirements.
Some competitions may even offer prizes of
valuable business and/or technical benefits, with ST engages its target audiences via multiple
features akin to what you might find in accelerator channels across its international reach. Of
programs – which also offer significant value to course, its marketing and promotional efforts
promising entrepreneurs and innovators, including are the most obvious. In addition, ST is also
mentorship and networking possibilities. making a more fundamental effort through
school and university initiatives in curricula,
One such competition based on
sometimes sparked through competitions
STMicroelectronics' (ST) full product portfolio
like the bi-annual World Solar-Car Challenge
is the ‘Open Innovation Challenge' for French
or spear-headed by professors. One such
startups, launched at CES 2019. Those interested
example is Professor William Kaiser’s
in participating still have time; it closes May 31.
STA RT UP S SURVIVA L G U IDE

Introduction to Embedded Systems with

Like most company-sponsored challenges, the
SensorTile course.
aim is to promote the organising company's own
technology and solutions, but the benefits to The most ambitious outreach effort is through
the winners are both monetary and experiential: ST-Up, an 18-month, 5-step comprehensive
free workspace as well as access, guidance, and mentorship program in Israel for startups that
coaching from tech and business experts. takes participants from vision to development,
through prototype to industrialisation, and
Other sources of support could include the free
 "Finding resources to mentor
STARTUP S SURVIVAL GUIDE

the startup process is not for

the faint-hearted."
- Giorgio Mariano, Strategic Marketing Manager

for STMicroelectronics, Americas region

finally to marketing strategy. With a significant support and mentoring on B2B sales and
investment of its own resources, it’s no surprise marketing, and introducing our selected partners
that ST selects participants on the strength of to the broader ST ecosystem of suppliers, partners
their design ideas and the compatibility of their and global OEMs.”
vision with the company’s offerings.
At the heart of the development segment are
Once ST has selected a company—generally a ST’s technology and product building blocks from
relatively mature startup, it provides through the brains to brawn: power and energy management,
ST-Up mentorship program tools, seminars, and motor control, conditioning and protection,
samples while empowering the startup through connectivity, sensing and actuating, security, and
the access, technical knowledge, and expertise of processing. Not coincidentally, these are all the
mentors to help the achieve their goals. essentials for IoT and Smart Driving applications,
as well as many app stops along the way.
ST-Up is based on three principles—Facilitate,
Accelerate, Collaborate. With these, ST aims to Because of its breadth of experience and width
cultivate promising startups by facilitating access of geographical presence, as well as a history and
to the company’s broad portfolio of products, culture of strong, long-term partnerships, ST has
technologies and development tools, accelerating considerable experience - with startups in France
the industrialisation of their innovative products by and Israel, for example, with universities around
collaborating with ST’s divisional resources, R&D, the globe, and in research and development
as well as manufacturing and test organisations. efforts with many of its suppliers, customers, and
With all of this, ST also enables increased visibility even competitors. In fact, engineers, hobbyists,
of the startup’s prototypes to appropriate strategic and students in almost every country in which the
partners, customers, and channels. company operates benefit from ST’s technology
tours, workshops, and seminars on topics close
ST’s Israel office established solid footing in ST-Up
to an engineer’s heart, such as how to develop
with a program for hardware startups in Tel Aviv.
innovative electronic designs and how to make
From the beginning, the ST-Up team met with
them viable and marketable.
promising candidates, those with a solid vision of
a prototype for development, to bring to through Whether you are designing a new motor control
all the stages of industrialisation and finally to unit for refrigeration, a tiny gadget for tracking
marketing strategy. your pet’s whereabouts, a device for uniting a
smart city, or something we haven’t yet even
“In 2018, ST’s Israel office launched ST-Up to help
considered, remember: make your prototype
guide startups from initial outlining of the vision to
scalable and industrialisable. And surround
developing a proof of concept to industrialisation
yourself with experts.
and the final go-to-market strategy,” said Stephane
M. Chouchan, ST Israel Country Director and
General Manager of ST-Up. “We began giving
access to ST internal resources and experts in
82 R&D, manufacturing and test, providing guidance,
From Maker to Market: 08
Digi-Key Support

Digi‐Key was started by a maker professional and has

a long history of being a destination for entrepreneurial 83
engineers. Maker.io is the first site to help those people
take their ideas from concept to product.

No matter where you are on your design roadmap, Maker.io

can help you bring your product and dreams to market, and
help you with any stumbling blocks on your journey with its
support system.

❶ ❶Customer Sales and Technical Support: Available 24 hours

a day 7 days a week. Available via chat, phone or email
❷ ❷TechForum: Online technical support forum supported by
Digi-Key technical support team and Digi-Key customer
community
❸ ❸Design Services Providers: Network of design firms
offering fee-based development, prototyping and
manufacturing services

maker.io
STARTUP S SURVIVAL GUIDE

09
DISTRIBUTION

For engineers and makers trying to move

into production, distribution can frequently
be forgotten, ignored, or underestimated.
Distribution is an essential and complicated
part of the process and is the point where your
end customers will have their first physical
interaction with your product.

84 digikey.com
 L E T 'S G E T PH YSICAL

maker.io
D IST R IB UTIO N
FLY MY PRETTIES, FLY! Fly my pretties, fly!
By Daisy Stapley-Bunten, Startups Magazine

Congratulations, it's now time to • Level 3: Manufacturer to Founder of Kokoon explained

give your product metaphorical Distributor to Retailer to that although it was not an
wings and send it out into the Agent to Customer issue for them to organise the
world and into the eagerly distribution process to fulfil
Once you have determined
awaiting hands of your customers! these orders in advance of the
which level of distribution is
Kickstarter campaign, you need
There are many factors that need suited to your product you
to do some research to factor in
to be considered from packaging, can then plan your product's
the cost into your product and
lead time, postage costs, distribution journey.
understand lead times: "We were
international shipping and plenty
A CASE STUDY wildly unrealistic," Antos said,
more, but to determine these
Let's take the example of a "Distribution is a complex and
factors you must first choose a
consumer product being sold on odious process, and you need to
level of distribution.
Kickstarter. anticipate unforseen costs like
FOUR LEVELS OF product returns for example."
DISTRIBUTION Creating the world's first sleep
According to Repsly, the company sensing EEG headphones, the Kokoon initially signed up with
offering retail execution software startup Kokoon had 8,489 Arvato, a large conglomerate
for Consumer Packaged Goods backers pledging $1,936,825 distributor, which was
(CPG) brands, there are four on Kickstarter. Of course, running a startup programme.
levels of distribution: Level 0, any startup would be thrilled Unfortunately only Kokoon and
Level 1, Level 2 and Level 3. to surpass their funding goal four other companies qualified
and have concrete market for their volume production,
• Level 0: Manufacturer to validation with such a result on and the programme was pulled.
Customer a crowdfunding platform, but After much wasted time,
once the deadline closes and the Kokoon then partnered with a
• Level 1: Manufacturer to
figures are in - it comes down to Hong Kong distributor (Kokoon
Distributor to Customer
9,000 units to ship to customers manufactures in China) which
• Level 2: Manufacturer to all over the world. Time to panic? had offices in the US and UK.
Distributor to Retailer to However, this company was not
86 Customer
Tim Antos (pictured left),
delivering a great enough level
of attention and the process was there are different packaging the distributors, make use of their
overly complex. This led Kokoon considerations. When shipping advice. The average accountant
to their third and final distribution direct to a customer, the Kokoon or CFO just won't know as it is so
partner - TBM. product is packaged in a box, but domain specific."
for the retail units it is packaged in a
Kokoon met this distribution Following its initial Kickstarter
sleeve. Though, as Antos found out,
partner through the hire of its orders of 9,000 units, Kokoon has
this caused issues when products
Distribution Manager who had a gone on to secure an additional
needed to be switched from one
working relationship with TBM 11,000 orders and has so far
channel to another as a result of a
and had worked on other startup fulfilled 80%: "We completed the
surge in online orders, for example.
distribution journeys. shipping of the Kickstarter orders
"We modified the packaging as a over six months, so we had time.
Kokoon use multiple levels of
result," said Antos. "All the units We de-risked our manufacturing by
distribution. It ships products from
are packaged in the same packet ordering small batches of products,
its factory partner in China to a
and can go to all territories with first starting with 500, then 500
distributor in Hong Kong which then
a booklet inside translated into again, then 1,000. With such a
ships direct to the customer (Level 1),
multiple languages for consumers. complex product, we had to de-risk
but in the US and Ireland, the product
as much as possible."
is sent from factory to warehouse to "When shipped to a retailer we have
retailer to customer (Level 2) using
Tech Data Corporation, a global
individual sleeves with copy in the
destination language."
To appease their Kickstarter backers,
Antos said that they ensured they 87
distributor of technology products, kept their customers in the loop and
Antos explained that while they tried
services and solutions. updated: "Throughout the course
to explore eco-friendly packaging
of the shipping we sent 62 updates
"We use distributors to connect options, be aware that this will
in total. The biggest lesson I have
with retailers because they be dependent on the factory you
learned from this is to work out a
are plugged into the retailer manufacture with: "We reduced our
prediction of the time and cost of
systems and have a much better packaging as much as possible and
distribution - and then double it.
understanding of managing stock minimised all our non-recyclable
It is better to beat your prediction,
and inventory than we do," Antos plastic use."
than to put your campaign under
explained. "They also help us
TAX CONSIDERATIONS unecessary pressure."
manage our cash flow by fronting
When asked about the tax
the retailer payment in a shorter Kokoon is currently raising
considerations for product
lead time than the retailer would." investment on the equity funding
distribution, Antos said: "This is
platform Seedrs.
PACKAGING really quite complicated, and to
With different distribution channels, be honest, the real experts are

STA RTUP S SURVIVA L G U IDE

D IST R IB UTIO N
DISTRIBUTING A NON-PHYSICAL PRODUCT Distributing a non-
physical product
By Dr Ross Harper, CEO of Limbic

Every startup needs a contrarian prompt the user with the same not working in isolation. We’ve
belief. At Limbic, ours is that questions a therapist would drawn tremendous support from
technology doesn’t need to be ask. We then feed this data startup communities such as
cold and emotionless. That’s why back to the therapist in a simple Entrepreneur First.
we work on emotion detection AI dashboard, tracking clinical
More recently, we were selected
- giving computers the ability to measures, measuring the impact
to be part of the Google for
recognise and respond to human of clinical intervention, guiding
Startups 2019 residency cohort,
emotion. We’ve spent the last 18 conversation in therapy, and
which has provided us with
months developing a new type of providing correlations between
mentorship and workspace, and
emotion AI system. This analyses lifestyle choices and mood.
extended our network within the
data from consumer wearables
So that’s where Limbic is today. startup ecosystem.
to predict the emotional state
But it’s taken us over a year to
of the wearer. In effect, we’re Founders have to do a lot of
get here. Limbic started life on
turning physical fitness trackers ‘just-in-time’ learning. It’s a huge
London’s Entrepreneur First
into mental fitness trackers. time-saver to source as much
programme. During this time, I
knowledge as possible from other
Our goal right now is to bring met my co-founder, Sebastiaan
founders going through similar
quantifiability to mental health. ‘Bas’ de Vries.
challenges. We’re also lucky to
Mental illness is a global
In my opinion, it’s really have some excellent advisors
problem, economically and
important that 1) first-time (shout out to Chris Mairs who’s
socially. Depression and anxiety
founders co-found with been with us from the start) and
annually costs the economy
someone else, and 2) your co- were careful to choose investors
around one trillion dollars, and it
founder has complementary who would open doors and help
will personally affect one in four
skills. I did my PhD in us grow as a company.
people this year. But if you can’t
computational neuroscience
effectively measure the problem, It’s with all this support that
and I oversee development
it’s hard to effectively manage it. we’ve managed to get to
of our AI; Bas turns this into a
where we currently are in the
At Limbic we're building the product that people love to use.
startup journey. Our emotion
world's first scalable solution It’s a match made in heaven,
AI algorithms are now best-
for mental health monitoring, and we make sure to regularly
in-class and we’ve got some
continuously and non-invasively ask ourselves, “what makes our
exciting academic collaborations
tracking emotional state in the team better-placed than others
underway. We’ve also been lucky
background. All you need is a to bring this idea to life?”
enough to win a few awards (e.g.
fitness tracker. When we detect
Another characteristic of Lloyd’s Bank National Business
88 a significant emotional event, we
Limbic’s growth is that we are Award) and grants (e.g. Horizon
 89
2020), which
extends our
runway and is
a sign we’re
moving in
the right
direction.

As a
software
provider, expert
our advice,
distribution make sure
journey is that you’re
vastly different playing to
from that of a your strengths,
hardware startup. Limbic online
and have a
is emotion detection AI which h e a l t h
clear vision that
sits on top of a wearable device consultations
everyone on the team
- if a clinician prescribes our are a great way
can get behind. We’re trying
product, we either integrate to access the more tech-
to tick all these boxes at Limbic.
the software into the patient's savvy and entrepreneurial
Our team is growing and we’re
existing fitness tracker or send medical professionals. Such
looking for talented individuals
them an off-the-shelf product platforms are themselves a
to join us for the exciting
which we integrate Limbic into. disruptive force within healthcare
journey ahead.
In this sense our distribution is – Limbic is well-positioned
dependent on the presence of to provide standardised Limbic is part of the Google for
STA RTUP S SURVIVA L G U IDE

pre-existing hardware and the quantification and accountability Startups 2019 residency cohort.
partnerships we make. to this rapidly evolving space. The latest cohort is focused
on spotlighting startups using
We’re now working with a Starting a company is inherently
machine learning to create social
number of clinical partners and risky. Most startups fail. In my
impact. You can find out more
have over a hundred therapists opinion, all we can do is stack
about how Google for Startups
in the UK waiting to trial our the odds in our favour: plug
is helping startups by visiting
mental fitness tracking product. into an active startup network,
campus.co/google-for-startups-
surround the company with
We’ve found that platforms for residency/
SUPP O RT
STREAMLINING YOUR DISTRIBUTION Streamlining
your
distribution
By Kiel Harkness, Director of Marketing at UPS

You've had a great idea and have factors such as where your of shipments, including duties,
set up your business… but now distribution will be based out customs fees and taxes, as well
what? Starting a business is an of, your overall volume and as forecast net profitability
exciting time but knowing how to frequency of orders, how far (UPS offers a Landed Cost
get your product into the hands your products will need to travel service). This helps to make your
of customers can seem like an and at what speed to determine estimates more accurate, making
impossible task when faced with which distribution options sure that you haven't forgotten
it for the first time. This is made provide the right flexibility for a small detail that could impact
even more challenging in the age you and your customers. your profitability.
of e-commerce, where buyers
Shippers like UPS can also 3. KEEP ORGANISED
and sellers expect to connect
assist with a "guided shipping" One key to keeping your
with speed, precision and ease,
approach, allowing your business distribution on track is
regardless of the distance that
to send one-off shipments or maintaining an organised
separates them.
schedule regular collections warehouse. Whether you
UPS was once a startup too according to your needs. This have a large warehouse or
and we know what it's like to flexibility is crucial for business small inventory in your garage,
set up a business from scratch. owners that see fluctuations ensuring you have the right
Below are some of our top tips in their shipping volumes, and arrangement in place for
for businesses setting up their as a startup having distribution your business can save you a
distribution channels for the options to choose from will help. headache during busy periods.
first time. This includes putting processes
2. KNOW YOUR COSTS
in place to retain shipment and
1. DETERMINE YOUR UPFRONT
order history to use as a guide
NEEDS As a new business, trying to plan
for future sales or reference for
The first step to setting up your business's future while only
past activities.
your distribution system is being able to estimate costs and
determining how much flexibility revenues can be a difficult task. Take the busy season for example.
your business needs in order Your distribution partner may be Being able to locate products
to meet the demands of your able to offer costing services that and packages quickly and with
90 customers. You should consider allow you to estimate the cost ease during high-volume periods
 91

will not only make your life easier expertise and tools that help package preparation, to tracking, to

ONE STEP AT A TIME

– it will also allow you to distribute optimise your supply chain and adapt collections options.
them sooner. This will make your to local market regulations, customs,
Putting an integrated fulfilment
customers happier, ensuring on time languages and currencies, allowing
system with detailed tracking
deliveries and eliminating the fear your business to take advantage
measures in place allows you and
of disappointment. This will all help of new market opportunities.
your customers to know where a
to improve the reputation of your Businesses expanding abroad also
package is throughout its whole
business and first impressions count! need to consider landing costs,
journey and – most importantly –
compliance and international forms
4. CONSIDER YOUR ensure you know that the customer
EXPORT NEEDS that could cause delays when
has received their order on time.
The global trade and business crossing borders, and country
Some shippers also offer tailored
landscape are rapidly evolving, and specific holidays.
local distribution solutions, such
this presents both an opportunity
A good logistics partner can provide as the use of the UPS Access
and a challenge for companies
the necessary consultancy and Point network to provide quick
with global ambitions – particularly
tailored logistics solutions to access and flexible collection and drop
small businesses. When you're
new markets, navigate regulations off options for customers at local
first starting out, exporting may
and achieve growth objectives. businesses, or UPS My Choice,
seem risky, complicated, or too
In fact, UPS has a dedicated page which allows customers to schedule
competitive.
on the UPS website, ups.com/ their deliveries at times convenient
Logistics experts can assist tradeability, to help our customers for them.
STA RTUP S SURVIVA L G U IDE

businesses in making this jump. For navigate these very questions.

We know that distribution can
example, UPS has recently helped 5. STREAMLINE seem daunting, but it doesn't need
UK-based company Precision FULFILMENT
to be if you approach it alongside
Technology Supplies (PTS) grow its Integral to the distribution process is
an experienced logistics partner.
business through export, providing order fulfilment. From a customer's
Whether you're just starting up
advice on how to get goods landed first click on your website to the
or looking to expand, the logistics
and cleared in new markets. final delivery, distribution partners
experts – and UPS – are here to
like UPS can help streamline your
This is done through providing help your business grow.
order fulfilment services through
Cut
through
all
the noise
subscribe free
for practical advice

startupsmagazine.co.uk
From Maker to Market: 09
Design Service Providers

A network of design firms offering fee-based

development, prototyping and manufacturing services. 93
❶ ❶Hardware Design
❷ ❷Mechanical Design
❸ ❸Project Management/Logistics
❹ ❹Prototype/Manufacturing
❺ ❺Software Design
❻ ❻System Level Design
❼ ❼Wireless Design

Serving multiple industry verticles from aerospace to

wearables, this Digi-Key network is on hand to assist with
your product development and working with development
tools such as FPGA/Synthesis, IDE/Compuler, Mechanical,
Simulation and Schematic/Board Layout.

maker.io
STARTUP S SURVIVAL GUIDE

10
SUPPORT

Now that you've successfully entered

your choice market, it's time for a little
maintenance. During this phase of your
process, you'll focus on processing potential
returns, troubleshooting early problems,
scaling your operation, offering warranties, and
gathering positive reviews. Your reputation will
be key—find a way to manage it.

94 digikey.com
 CU STO ME R SE R VICE IS K EY

maker.io
SUPP O RT
STAND OUT FROM THE CROWD

Stand out from the crowd

Lanna Cooper, Startups Magazine

Stand out from the crowd

Lanna Cooper, Startups Magazine

Pretty much every possible market you can reassured you're making the best possible
enter today is already close to being a saturated decision right? You want to know that what
one. The main thing that separates a successful your spending your money on will last, and if it
business from a failing business, is the type of doesn't, that you can reach out to the company
experience you create for your customers. for support.

Great customer experiences are what set That's where warranties come in! But why are
companies apart in crowded marketplaces, they so important?
because they create vocal customers. This
Well they are beneficial for both the customer
advantage is hard for any other businesses to
and the business owner. Warranties set
break down, because they have to battle that
expectations, customers know what they're
existing business-to-customer relationship first.
getting into if they ever need to fix or return
Creating a great customer service experience the product. They also protect both parties
can be a difficult one for startups because because customers know if they have trouble
unless your startup is well funded, then you with the product, they can turn to the company.
probably don't have the budget to hire a Therefore, the companies need to spell out
customer support professional. what exactly they'll cover so that customers
don't try to claim anything not written down in
DON'T BE AFRAID TO SHOUT
YOUR NAME FROM THE print. Warranties also encourage repeat sales
ROOFTOPS because if customers know that they can trust
Most people understand that founders and certain businesses, then they'll be going back to
CEOs have their hands full, so when one of them over and over again.
those leaders make the time to help customers,
DEALING WITH RETURNS
they are more likely to appreciate the response.
No business likes dealing with returns, however,
This is how you show your commitment to it's just part of running a business – especially
your customers. You tell them: Even though I'm around the holiday season. No matter how great
juggling a million and ten things at once, your your product is, there will always be customers
problem is important to me and I'm here to help! who aren't satisfied or need to return the
product. Instead of viewing returns in a negative
By signing your email off as Founder or light, try to see them as an opportunity to turn
CEO, your deepening the relationship with a unsatisfied customers into loyal ones.
customer who could well go off and tell their
friends about it. Make it as painless as possible – don't make
your customers jump through hoops just to
PRODUCT WARRANTIES?
96 When you buy a product, you want to be
return a product. By getting rid of the hassle of
returns, you'll build loyalty with your customers Even your happiest customers might need
who will be more likely to purchase from you some extra incentive to write a review. Offering
again in the future. a small incentive is a great way to show your
appreciation! You just need to make sure your
Returns can actually give you a bucket full of
offer is for writing a review, and not for writing
insight about your product, customers and even
a good review.
your marketing strategy. So instead of dreading
processing a return every time, make it a point If the site allows it, make sure you thank each
to gather as much feedback as you can. You person who reviews your product. In addition,
could ask; why they are returning the product? you could even treat a top reviewer by sending
Were they not satisfied? them a discount code or freebie. This simple
gesture will turn a happy customer into a happy
You can use the feedback to improve your
and loyal customer.
product and maybe even introduce some new
features. Or maybe tweak your pricing strategy. SPEAKING FROM EXPERIENCE… 97
Christina Friis Blach Petersen, Founder of LYS
STARTUP STRUGGLES
Technologies, a startup that created a way to
The launch of the product is the start of your
track your light intake for a healthy sleep-wake
journey, not the end goal. Before launch day,
cycle, described her experience with customer
you have many assumptions about who you're
service.
selling to and why it matters to them. But the
picture becomes clearer after launch day. "As a young startup with a consumer product
on the market, it is very important to make sure
To your surprise, you might find that the biggest
your customers feel your product generates
issues aren't with the actual product, but with
value and that they trust your brand.
everything surrounding it.
"A big focus for us at LYS Technologies has been
POSITIVE REVIEWS
to learn as much as we can from our users and
According to a Zendesk survey, 90% of
their needs, and adjust our customer service, our
participants claimed that positive reviews
returns policy, product and service accordingly.
influenced their buying decision, and 86%
It is crucial to listen to the right users - which is
said their decision was influenced by negative
why nurturing a group of evangelists is key. The
reviews.
reason for this is that if you adjust the product
Many businesses focus too much about what to every feedback or issue, then you might end
to do about a few bad reviews, but the most up adapting the product in the wrong direction.
effective way to deal with those negative nellies Stick to your guns as they say but don't be afraid
is to load up the good reviews! But you'll need to to adjust and change along the way.
encourage your happy customers to take the time
"We've learnt so much from our users,
out of their day to write about their experience.
especially the early adaptors and avid users
You'll need to make it easy for customers to who we call 'superusers'. I think that coming
leave reviews because unless someone has a into the consumer tech market in 2019, at a
negative story to share, the average customer time when users have such high standards of
isn't going to go out of their way to look for ways what service means to them, it only makes
STA RTUP S SURVIVA L G U IDE

to leave the company a review. The sad truth is sense to listen, learn and design with the users
that people are all too quick to leave a negative in mind.
review, while getting them to leave a positive
"The only way to get good reviews is to have a
one can take a little more cajoling. That's why
good product and service out there, there's really
when you ask them to post a review, you need to
no other way around it - that's what we continue
make it easy for them to do it. One of the easiest
to focus on."
ways to do this is by including direct links to your
review profiles in multiple places; like a follow up
email, newsletters or your website.
SUPP O RT
THE TRICK TO HAPPY CUSTOMERS The trick
to happy
customers
By Jamie Grant, CEO of Carv and Motion Metrics

It was 2am in mid-January 2018 and we were feature and scalable pricing. Collecting all tickets into
staring at over 600 open customer support tickets. one place quickly became an invaluable tool to make
We had fallen into one of the classic startup traps: sure nothing slipped through the net. We had a great
after launching a Kickstarter in 2016, we had just tool, but we weren't prepared for the onslaught of
shipped our product and now had thousands of users tickets that was about to occur.
– sometimes adding hundreds in a day. Although we
LESSON 2: PREVENT CUSTOMER
were getting great feedback from our users for the SUPPORT
product, we hadn't put in place a structured customer The best approach to getting on top of customer
support system – and the list of pending requests and support is preventing it in the first place. You've
questions was starting to get out of control. got two options: implement an FAQ or ‘help desk'
section on your website that allows users to find
Today, despite having three times as many users, we
the information themselves. Or better, improve the
have half the number of support tickets and decreased
product itself. This may sound obvious, but when
our response time by a factor of six. Here's how we
you're frantically bailing water out of a sinking ship,
kept our customers happy and got our development
it's very easy to forget to plug the hole.
time back.
LESSON 1: GET A CUSTOMER Focusing on low-hanging fruit, we quickly realised
SUPPORT PLATFORM THAT FITS that many of the tickets were basic queries related
YOUR NEEDS to how to install and set up Carv. To fix this, we had a
Our product is a digital ski coach called Carv. The two-pronged approach:
product combines hardware and software to give
detailed in-app feedback at the end of each ski run 1. Improve the in-app instructions that Carv guides
as well as real-time audio instruction whilst skiing. you through when you first connect the units.
The hardware is a thin insert that fits into the ski This is our first line of defence and helps many,
boots, which collects the relevant pressure and but not all, of our customers.
motion data and then sends it wirelessly to the Carv
2. Create a detailed instructional video - lasting over
smartphone app.
10 minutes - that plays from within the app and
By the nature of the product, we have many touch goes into detail on many of the edge-cases that
points with the customer: the Facebook page, our we'd seen in earlier customer support tickets.
website, shipping emails, the unboxing and installation
The result was that it worked. Installation related
experience, in-app chat... Before launching, we
queries all but disappeared. Things were getting better.
chose to use a platform that aggregates all of these
customer channels into a single interface. There are LESSON 3: HAVE A DEDICATED
TEAM MEMBER
a number of platforms that offer this service, but
Initially we distributed support around the team.
98 we chose Intercom because of the robust live-chat
While this is a great way of bringing your team closer
Carv is a digital ski coach that
gives real-time audio and
detailed in-app feedback to
improve your skiing technique.
Carv broke the record for a sports product on Kickstarter

in 2016.

99

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STARTUP S SURVIVAL GUIDE

to your customers, it led to a lack of responsibility: has created a time when the whole team is working
no one is sure who is ultimately responsible for directly together focused on a single goal - helping the
the customer's request and tickets fall through the customer - which has been great for culture.
cracks. By giving ownership to a single team member
LESSON 5: GROWING THE
for ‘customer success', we created someone who COMMUNITY
can champion the customer and follow up with the When doing customer support myself, I increasingly
relevant team member on the customer's behalf, if a found much of my time was spent speaking to people
ticket is outstanding for too long. who were incredibly enthusiastic about the product.
LESSON 4: MAKE IT A TEAM SPORT, They would write thousands of words about their
SOME OF THE TIME experience and feature requests they most wanted.
Having a dedicated team member on support was I wanted to provide considered responses to each of
great. But when technical queries were escalated to the them, but needed to manage my time effectively.
development team, it disrupted their concentration.
To address this, we created the Carv development
To reduce this effect, we created a dedicated daily community, an invitation-only Facebook group where
‘customer support hour', where the whole team would we can interact with our most dedicated customers.
work on solving tickets together. This had a myriad of But our responses are shared and discussed by not
benefits: it improved the speed of response when input only us but other users in the group. This allowed the
from multiple team members was required, kept it fun bubbling enthusiasm of the members to self-reinforce

100
whilst ensuring nobody was skipping their duties and itself, allowed us to focus our responses to the critical
 101

points, and most crucially, it's built a community spirit the phone. Often, an angry message isn't their fault. It's
that we can use as a seed for future growth. hard to effectively communicate how annoyed you are
over an email without resorting to spicy language. By
LESSON 6: DON'T OUTSOURCE TOO
E A R LY talking to a customer they feel they're getting the level
Customers are at the core of any business and early of respect, service and attention they deserve and they
on, you really have no idea who they are or what their can more easily vent on the phone on a personal level.
needs really are. Keeping customer support in-house This goes a long way to calming the situation down and
means you naturally get close to your customers you will likely end up learning more about your product
and gather the maximum amount of feedback from and may even gain a friend.
them. This is valuable knowledge that you can use to
We know we still have a long way to go in offering the
improve the product. Another positive effect: it brings
best possible experience to our customers, but taking
STA RTUP S SURVIVA L G U IDE

your team closer to your customers, helping them to

these steps has allowed us to start moving quicker as
empathise with the users problems and fix the issues.
a company and keep our customers happier.
LESSON 7: IF IN DOUBT, GET ON
THE PHONE As a startup, your product is guaranteed to have some
There's nothing worse than opening up your ticket bugs or issues that aren't fully ironed out when you
platform and seeing an angry message. Someone who's ship. (If it doesn't, you might have shipped too late).
so annoyed they've resorted to capital letters. It's at Customer service is the best antidote to these issues,
times like these that genuine empathy can help - and and when done well, can convert an angry customer
we've found the most effective solution is picking up to your best ambassador.
SUPP O RT
SUPPORTING YOUR TEAM

Supporting your team

By Rita Trehan, Business Transformation Consultant
and Founder of Dare Worldwide

You've had the idea, got the business up and running, be a priority, where no question is a silly question,
secured the premises and hired the staff. They're the where support can be readily accessed from both
ones that keep your company running, no company peers and management. Taking the time to build an
has thrived with an unhappy workforce, and we environment like this can really help improve the
know that when people feel supported, they are confidence of the workforce and gives them peace of
more efficient and productive, so what can you do mind that it's available to them whenever they need
to ensure they're happy and feel appreciated and it. Providing avenues (internal or external), for people
supported by you? to raise any issues they're having, both professionally
and personally, or a system where employees can
Creating a strong network of support within the
take time out of the day to relax and unwind, are
workplace can help attain a high level of morale
simple to implement but highly effective.
within the group, as well as create an environment
that fosters open communication where people are BE TRANSPARENT - MAKE SURE TO
MANAGE EXPECTATIONS
far less likely to burn out.
Managing expectations amongst staff is another way
Providing support should be a main focus of leadership. of ensuring that staff are feeling supported. Make sure
It's not to be tucked away only to be revealed and used that staff are fully aware of what is expected of them,
when someone has reached breaking point. as well as what is expected of you as the business
leader. It's a simple but effective way of sustaining a
Of course, there are moments when more support
good level of trust and being transparent goes a long
than usual will be required, for example when a
way to ensure that there is no confusion, so all team
member of staff is new to the role, when someone
members' expectations are aligned, and they know
is experiencing difficulties in their personal life or
what level they need to perform at.
when the pressure is on in general. Regardless of the
situation, it's important to remember support should STRIKE A BALANCE
be omnipresent within the workplace at all times. Giving your staff the opportunity to work flexibly
wherever possible and supporting their other interests
There are many ways that you as a business owner outside of work will keep staff happy and working to
can ensure that your people are supported. Investing the best of their ability. Simply asking about their
in your people, by leveraging external help as needed hobbies or interests outside of work will remind staff
or having a head of people, is something that that they are far more than just a payroll number.
companies should consider as they expand and grow,
but even then, it does not negate your leadership Some members of your staff may have children or
involvement. Some things you might want to consider commute a long way, so giving them the opportunity
implementing include;. to work flexibly or work from home may motivate them
more, they'll certainly appreciate the improvements in
A SUPPORTIVE ATMOSPHERE
102 Fostering an open and positive atmosphere should
their day to day life.
HELP STAFF ADAPT TO CHANGE be a great retention strategy.
Keeping your people informed on what's going on
LISTEN TO THEM
in your business and what your plans for the future
Listening to people's concerns and addressing them
are, will make your staff feel included in the process.
as soon as they arise will prove to people that you
By giving people an idea of what's happening in the
care, and their opinions matter.
company, you're giving them the time to adapt to any
changes in the business as well as providing them It's the ultimate morale booster but also a cost-saving
with the opportunity to share their ideas on how to exercise for businesses. Employees that feel listened
implement the change successfully.. Some people may to translates into happy employees, resulting in
need more help than others when there's a change, increased productivity and decreased staff turnover,
and knowing who these people are and giving them so you save money on recruitment and training new
the support they need will empower them rather than staff whilst getting the best results from your team.
leave them behind. Having an idea or concern that is dealt with in a timely
manner gives people an amplified sense of ownership
ALLOW FOR DEVELOPMENT
within their role.
Staff development usually happens at the beginning
of the job and for many companies, that's it. But I feel GIVE PRAISE AND SAY THANK YOU
it's important to continually invest in developing your Probably the most effective way of ensuring that your
people's capabilities. Development does not have to people feel supported is showing them that they are
equate to training courses. Opportunities to shadow
others, giving people the opportunity to lead a new
valued. Saying thank you and giving small tokens of
appreciation will go along way to keeping morale high.
103
initiative or manage a difficult situation, can all help to A birthday card, recognising people publicly or simply
grow people's "career currency" organising team get togethers, can be surprisingly
effective. These little things may not seem like a lot,
By investing in development, you are nurturing a
but can really help cement your people's loyalty and
person's potential and that ultimately means they are
happiness in your company.
more likely to feel a greater level of responsibility and
motivation towards their work.. When budget is tight, At the end of the day, your people are human
money put aside for training and development is beings with feelings and motivations, and it's about
typically the first to be cut. Don't make that mistake, understanding these and seeing how you can make
it will hurt you in the long run. Consider carving out the work environment and the culture one that other
a pot of money specifically for outside development companies envy. Value your people and what they do
activities, not only will it have a positive impact on and you'll get the best work out of them, and as a
your business from an operational standpoint, it can direct result your business will thrive.

STA RTUP S SURVIVA L G U IDE

Helping startups
connect
the
dots
on their entrepreneurial
journeys

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