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This Week in Canadian Startups

canadian startupsA short week but there was so much happening, it seemed to fly by. If you want to share any start-up news or interesting blog posts or articles, leave a comment or send an email to mark@markevans.ca. Happy Easter and Passover!

- Mark MacLeod (aka @startupcfo) offers good insight into customer vs. revenue churn for SaaS startups, emphasizing that slicing and dicing your data is a must-do.

- Wes Johnson provides an in-depth rundown on Toronto’s startup scene, putting the spotlight on events, people and investors. I appreciate my inclusion as a “startup marketing mentor”.

- Are you following the “Easy Peasy Lemon Squeezy” principle to usability? Is your Website easy to understand, navigate and use? If not, you better fix this ASAP.

- According to Statistics Canada, the number of entrepreneurs is declining, which runs counter to the entrepreneur renaissance that seems to be happening.

- Who are Canada’s most promising tech-startups. According to the Globe & Mail, the list includes WattPad, ScribbleLive (a client), Vitamin Daily, Polar Mobile, HootSuite, A Thinking Ape, W Media Ventures, Tiny Speck and Summify (which was snapped up by Twitter). Who would you add to this list?

- When do you launch a startup? At what point is your baby ready for prime time? Vinicius Vicanti has some thoughts on how Yipit “fooled itself” in delaying its launch.

- In a fast-paced world, you only get one shot to sign someone up for your service so your registration form better be quick and simple. Here’s why.

- In last week’s budget, the Conservative government announced it will be investing a much-needed $500-million in venture capital activities, making it Canada’s hottest VC.

- While the Canadian government’s decision to kill the penny got a lot of attention, the Royal Canadian Mint unveiled MintChip, which is digital currency that Fast Company described as Canada’s version of BitCoin.

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The Easy Peasy Lemon Squeezy Principle

We live in a fast-paced, time-strapped, multi-tasking world. Most Web users are lazy; they want instant gratification with minimal effort.

For startups, it is a challenging landscape because they may only get a single, short-lived shot to attract a potential user. Even if your product is useful, interesting or valuable, it also has to be immediately captivating. A harsh reality but it is what it is.

So, what’s the solution?

The answer is simple: easy peasy lemon squeezy. Translation: make your product a snap to get and use. Embrace the lazy Web user by playing into their inability or unwillingness to provide you with anything more than a momentary look.

If you’re Website isn’t easy, you’re dead. End of story. Yes, it’s probably overly dramatic but there’s too much competition and too many distractions to make things more complicated than they should be.

So what do you do?

First, make sure your messaging is crystal clear. In seconds, a user has to grasp what you’re offering, the benefits and why they should give you another 10 seconds of their time.

Second, make your product simple to use. As we talked about earlier this week, the registration process has to be quick and simple. The product must be easy to embrace, easy to get started, and it needs to provide a good experience in a short period of time.

Sounds easy, right? In theory, it should be at the core of a startup does but far too often a product is difficult to get, too complicated and challenging to use. The messaging is unclear, the navigation is bad, the experience is unintuitive, and product doesn’t provide any kind of satisfaction.

It means startups have to focus on making everything easy. It doesn’t mean the product is no-frills or simple. It means the entire experience has to be intuitive, seamless, “grit free” and provide value. At the same time, a user’s questions or needs must be quickly and easily met, otherwise they will abandon you in a heart-beat.

For anyone who wants to embrace the “Easy Peasy Lemon Squeezy” principle, it involves taking a hard look at your product to assess whether it is as easy to use as possible.

You need to be realistic and critical, and accept that big changes may have to happen. It may be the messaging, design, navigation or usability but you need to do whatever it takes to make everything easier to use.

startups usability

Why Signup Processes Must be Dead Simple

startups registrationFor startups, it’s challenging to capture the spotlight. There’s so much competition, lots of noise and a marketplace chock-a-block with consumers who are fickle, time-strapped and not really paying attention.

It means if a startup is successful in actually getting someone to visit their Website, they can’t give them a reason to click away.

Even it’s a small issue – something I describe as “grit” – a Website visitor will quickly click away without giving it a second thought.

So let’s assume a startup’s messaging, value propositions and benefits are well-articulated and clear. Congratulations, but if  you want someone to sign up for your service, there’s another big hurdle to overcome: the registration process.

Don’t Ask for Too Much Info

It’s surprising how many startups fumble this crucial step. Often, it’s too complicated, requires too much non-optional information, doesn’t provide any details about what’s going to happen next, or validation about why someone is signing up for a service.

The reasons why registration processes fail is perplexing but it may be this step is regarded an after-thought. There’s so much focus on developing a service and the messaging surrounding it, a startup may forget the registration process requires as much attention.

This, unfortunately, is a mistake because a bad or flawed registration process can cut you off at the knees. It’s not unlike the problem e-commerce retailers have with abandoned shopping carts.

So how should registration processes work and be effective?

In short, it should be sweet and dead simple. Don’t give people a reason to think twice. Instead, let them register in seconds without giving it a second thought.

Here are a couple of examples of user-friendly registration forms:

Tumblr – 1, 2, 3…and you’re done.

registration forms

Goodsie - Set up an e-commerce store now.

registration forms startups

Bottom line: Make it easy to register, and keep it short and simple. Another important consideration is making the confirmation email a marketing vehicle too. Rather than making it a plain vanilla “Thanks, you’ve registered for X” email, it’s an opportunity to promote the value of your service in a creative way.

What tips would you have about signup forms? Are there companies that do it particularly well or creatively?

More: UXMovement has a post on the eight reasons why people don’t complete sign-up forms.

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Canada’s Hot New VC: The Federal Government

venture capital canadaWhile Canada’s venture capital sector is showing signs of improvement, it is a long way from being robust, let alone healthy. So it was encouraging to see the Conservatives commit $500-million to support venture capital initiatives.

The support consists of $400-million into VC investment, although the details have not been disclosed yet, and $100-million via the Business Development Bank of Canada.

Not surprisingly, it was welcome news for the VC industry.

Gregory Smith, president of the Canadian Venture Capital Association, said he was “pleased to see that the federal government has taken decisive action to address the acute shortage of venture capital by committing $500 million to the industry,” while Round13′s Scott Pelton told BNN it was “the beginning of a turnaround” for an industry that has struggled.

There is no doubt that $500-million of support for venture capital is a positive development. It will be interesting to see how the money is allocated and how it gets divvied up into the different sectors and investment stages.

At the same time, it’s also a sad state of affairs when the federal government has to get so involved at a time when it’s cutting corners to wrestle an enormous budget. Clearly, the need to support startups and innovation outweighed the financial and economic challenges.

The upside is the government is willing to walk the walk and talk the talk. It’s one thing to tout the benefits of innovation and the New Economy, it’s another to use taxpayer money to support it.

Maybe this will provide even more encouragement to institutional and corporate investors that have been sitting on the venture capital sidelines for whatever reason.

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This Week in Canadian Startups

canada startupsIt was a busy week in the Canadian startup landscape, highlighted by a high-profile investment and changes to Canada’s highly regarded R&D credit regime. If you have feedback or want me to add an item, leave a comment or send an email.

- The big news was a $20-million investment by OMERS in HootSuite, one of the world’s most popular social media services. OMERS bought its stake from existing shareholders, which is a bit of a head-scratcher given HootSuite has aggressive growth plans, including the hiring of more than 100 employees. It suggests HootSuite is generating significant revenue from selling premium services.

- In the federal budget, the Conservative government tweaked the SR&ED tax credit program by eliminating $500-million from it, while committing $400 million for early-stage risk capital and to support the creation of large-scale venture capital funds. TechVibes has more details on how the R&D credit system will work going forward. Here’s a clip of Round13′s Scott Pelton talking on BNN about the federal government’s new support for venture capital.

- The early-stage investment landscape for Canadian clean-tech companies got a huge boost when MaRS unveiled a new $30-million fund led by Tom Rand and Murray McCaig. The news was welcomed by Tyler Hamilton, one of Canada’s leading clean-tech bloggers.

- Do you know Boris Wertz? He’s one of Canada’s leading angels with a track record that includes investments in Edmodo, Empire Avenue, GrowLab, GoInstant, Tynt and Unbounce. TechVibes has a story on how many Vancouver startups approach Wertz, who was named B.C.’s angel investor of the year in 2011.

- Who’s the most innovative startup in the world. It’s Calgary-based eThor – at least that’s the TechVibes headline. The company, which has built a platform that connects point-of-sale systems to any Website or mobile app, picked up the kudos after beating 2,000 startups to win 2012’s most innovative startup on the planet at the Global Technology Symposium in Silicon Valley.

- There are five pitfalls that founders make, according to TechCocktails, while OnStartups offers 26 tips to avoid founder failure.

- Tara Hunt has a good piece in Inc. on how startups should be careful about prematurely seeking media and blog coverage.

- ConversionXL, which has become a must-read for me, has a great post on the 10 principles of creating effective pricing pages.

- In my Globe & Mail “Start” column this week, I looked at the value of mentors in an interview with Devon Brooks, as well as a profile of Floggia, a phot0-sharing service started by 19-year-old Miguel Kudry.

(Cartoon credit: Hugh MacLeod, Gaping Void)

 

Pinterest: The What, Why and How

pinterest presentationIt’s increasingly difficult to ignore Pinterest these days. Heck, Barack Obama has jumped on the bandwagon, although he seems to like just about anything social.

After being asked to put together a presentation on Pinterest, my take is there’s really interesting potential for marketers looking to expand their digital footprint in a visual, tactile and engaging medium.

Anyone in the B2C market should be exploring how Pinterest can be leveraged to put the spotlight on their products and services given how much Pinterest has as a way to drive referral traffic.

The other big takeaway about Pinterest is how it puts the focus on the importance of having a compelling Website or, at least, a Website that effectively meets the needs of visitors while, at the same time, supporting a company’s business objectives.

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