Craigslist. Google. Facebook. Wikipedia. All fugly.
Why do people use fugly products? Because they're amazingly useful.
The problem with beautiful design is it tricks entrepreneurs into thinking their quite useful product will succeed.
Quite useful = failure, no matter how well-packaged.
Amazingly useful = success, no matter how fugly.
So my strategy is to launch fugly. Don't let yourself be the pretty boy/girl without a personality or a brain. Force yourself to succeed in the early days despite your fugly appearance. And then when everything else is working go in for a haircut and start putting on some make-up.