Starting a business is rough. Most startups fail. Your best chance to thrive is to find the right community, the right partners, and the right network of support from the very beginning. We love nothing more than meeting promising founders during their first days starting a company.
The tech giants of today started as one or two person ideas not long ago. We’ve met many young companies and noticed that startups with the following characteristics have the best shot of becoming enduring companies.
Clarity of purpose Summarize the company’s business on the back of a business card.
Large markets Address existing markets poised for rapid growth or change. A market on the path to a $1B potential allows for error and time for real margins to develop.
Rich customers Target customers who will move fast and pay a premium for a unique offering.
Focus Customers will only buy a simple product with a singular value proposition.
Pain killers Pick the one thing that is of burning importance to the customer, then delight them with a compelling solution.
Think differently Constantly challenge conventional wisdom. Take the contrarian route. Create novel solutions. Outwit the competition.
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Team DNA A company’s DNA is set in the first 90 days. Choose your first few hires wisely.
Agility Stealth and speed can beat slow incumbents.
Resilience Hone your ability to bounce back and keep trying.
Frugality Focus spending on what’s critical. Spend only on the priorities and maximize profitability.
Inferno Start with only a little money. It forces discipline and focus. A huge market with customers yearning for a product developed by great engineers requires very little firepower.
This article is part of Sequoia Capital’s publication series. Sequoia Capital is an American venture capital firm, headquartered in Menlo Park, California and mainly focuses on the technology industry.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.