Jenny Sagstrom, Founder and CEO of creative agency Sköna, a full-service creative agency building brave B2B tech brands in Silicon Valley and across the globe with Scandinavian sensibility

News of Big Tech layoffs has continued through the first quarter of 2023. For some, these decisions came as such a disappointing shock that they have decided to leave the tech industry altogether, feeling less secure than ever about the job stability it once offered. Others have taken that instability and decided to forge their own paths, capitalizing on their tech experience by launching startups.

A recent survey of tech workers laid off during the pandemic years revealed that 63% started their own company, and 93% of those new businesses are competing with their former employers. Sticking with what you know and working to improve on it makes a lot of sense. However, the risk here is remaining in the shadow of your former employer.

Big Tech alumni who are launching startups will want to avoid getting stuck in the shadows of their former employers by finding a unique brand voice.

My agency has worked with over 100 tech companies and has supported several IPOs (including the biggest software IPO ever). We’ve collaborated with clients raising funds from Seed to Series D, totaling over $1 billion. I’ve seen first hand the difference branding makes over the course of a startup’s lifecycle. Branding not only illustrates a deep understanding of your business and its core values, it is also the foundation for scaling talent, awareness, and sales.

So as you turn the disappointment of a lay off into the opportunity to build something better and do things your own way, here are three major branding red flags you want to avoid.

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Having a logo ≠ having a brand

I’ve seen it more times than I can count: a tech company with a logo that looks like it was designed by a college roommate using bootlegged Photoshop. I get it – tech founders are more focused on ensuring their tech is groundbreaking. But they  are often too myopic about letting their technology do the talking.

A thoughtfully branded company shows that you’re thinking ahead. Just like you wouldn’t show up to the most important interview of your life with disheveled hair and a stained shirt, you don’t want your logo looking similarly unprepared. Branding sends messages. A strong logo speaks volumes, but it’s just the beginning.

The basis of a brand system consists of a logo, fonts, colors, and graphical devices that can be repeated infinitely. It sounds basic, but I’ve seen time and again that demand gen creates something that looks entirely different from what the social team is posting and what the recruitment team is creating. A brand system ensures unity across all departments.

This also increases the likelihood for brand recognition. If someone sees your brand seven times, but it looks different each time, it’s not going to be memorable. A brand system is like a pack of Legos – once you have those building blocks, they can be used to create digital banners, landing pages, ABM campaigns, recruitment ads, web pages, emails, trade show booths, swag, the list goes on and on.

Set the foundation for future success by establishing strong branding early.

Not investing in brand assets and strategy

Whereas B2C brands spend nearly half their marketing budgets on branding, B2B companies spend less than ten percent on average. If you’re launching a B2B tech startup and want to compete, you have to put yourself in front of your market share. Without strategy, brand design is just artwork.

By the time a B2B buyer inquires about your product to your sales team, they’re already 57% of their way through the sales process. Before then, you should make sure they’ve already come across brand marketing assets that convey how your technology is solving their specific business problems.

What can you create that will demonstrate to your customers that you have their success in mind? Is it a blog post on a feature you’re noticing users are missing out on? Is it a case study demonstrating how a successful client used your tech?

If you only had $100 left in your whole budget, I would advise you to spend $80 on your funnel. For the other $20, however, you want to think outside the box. A lot of tech companies think they don’t have direct competitors. While tech-wise that may be true, everyone is competing for time and attention. So, get creative to stand out. Maybe you send pizza in branded boxes to potential buyers, or buy ad space at the baggage carousel at the airport. There is so much value in experimenting, trying new things, and learning what works.

It’s said that 95% of your future customers are not even in-market as you’re reading this. If you’re only focused on the folks in your funnel, you may see some initial movement, but you’re going to quickly hit a growth ceiling. Building out your marketing assets and determining your brand strategy is playing both the long and short game.

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Using superlatives to woo talent

If your startup receives a big funding round, you’re going to have to prioritize getting top talent on board. Branding work isn’t just for customers, after all, it’s also about attracting the right people to your team.

Truly impactful branding work is both holistic and authentic. It captures the mission, vision, and values of an organization and communicates that through design. It’s deeper than simply copying a minimalist sans-serif aesthetic.

If there is one thing that does not sway the best and brightest it’s superlatives like “best” and “brightest.” These days, employees want to work in a place where they feel their personal values align with that of their company. In fact, according to a recent Qualtrics survey, 56% of employees in the United States won’t even consider a job if they feel there is a mismatch regarding their values.

Strong branding will communicate those values so you can capture the talent you need to scale. Take Snowflake as an example. My team and I were working with Snowflake when they were in their hyper growth stage around 2017-2018. Part of our brand strategy was placing billboards along the freeway in San Francisco, where we knew a lot of the talent we wanted was commuting. The billboards communicated that the company valued diversity in a way the former president wasn’t exactly embracing with his immigration policies. We displayed phrases like “Data Without Borders.” That year, 70% of all their new hires reported they first made contact with the brand through those billboards.

Branding work isn’t nice to have when you’re trying to build the next big thing. Branding is a need to have, and it demonstrates that you not only have a great idea and vision, you have an actionable plan to rapidly scale toward success.