During the seed round of a start-up, the initial idea has since been converted into an actual business where partners and employees are all on board. The start-up is just beginning to gain traction with customers, although they are still working diligently to ensure that they can accommodate the growth of their business. At this point, the startup needs investors to make this happen so that they can adequately build their brand, compose a team, manufacture products, and conduct market research. All these components will greatly impact the success of the business in the future; however, one aspect that many start-ups overlook prior to and during the process of seed round funding is design.
Certainly, no one contests the importance of establishing the brand identity or hiring employees when it comes to start-ups; however, when it comes to market research, user testing, product development working with a design studio can actually increase the number of investors attracted during seed round funding.
Showcase Unique Designs
With an endless supply of start-ups launching each year, during the seed round it is important to stand out from the crowd. Regardless of how innovative a start-up believes their product is, there is probably a competitor out there who is manufacturing something at least mildly similar. This is where working with a design studio can make all the difference. They can harness the power of knowledge and experience to create a unique design that makes it much more enticing than the generic counterpart of competitors.
Demonstrate Commitment to Quality
A start-up that invests in the expertise of a design studio early in the game shows investors that the business is committed to high quality. It can also display that they are serious about their product and their future. This is because many start-ups will enter the seed round with shoddy products that have not been thoroughly mapped out. This, in turn, can ultimately delay or prevent an investor from making money.
Present a Clear Vision
When a start-up is attempting to attract investors, they must work diligently to share their vision for the product and the future of the business to get them on board. Although most start-ups have detailed business plans and product blueprints at this stage, having a well thought out prototype can help them to present a clearer vision to investors.
One of the most significant roles that a design studio undertakes is identifying any design flaws within a product. These flaws could be overlooked by those who are inexperienced, and a valuable investor will recognize this. They also understand that even the smallest flaws in design can create a huge risk in terms of manufacturing costs as well as the safety and functionality of a product. They will likely feel more comfortable investing if they know that a professional has evaluated the design, cost, and functionality of the product.
While a focus on design early can greatly increase the number of investors a start-up attracts during seed round funding, it can also benefit start-ups far beyond this stage. A design studio can prevent start-ups from losing countless dollars and valuable time by mapping out a functional design from the start.