Playing devil's advocate:<p>"Pick the one thing that is of burning importance to the customer then delight them with a compelling solution."<p>"Customers will only buy a simple product with a singular value proposition."<p>What about iPhone, probably the most profitable product of the last 5 years? Is it really that focused?<p>I don't think that many people in 2006 would have said: my phone is not enough like a computer. I would have said that cell phone call quality and battery life sucks, so give me something that will hold charge for a week, has the quality of a land line, is ultra light, small, can be dropped, etc. That would have been focused.<p>Steve Jobs said it was 3 products I think... it's a phone, an ipod, and a computer in your pocket. It's this thing where you can play music, surf the web, call your friends, text them, take notes, download apps, and the interface is better than predecessors because you can use your finger.<p>Not to say their advice is wrong... it's just that thing kind of advice is applicable in limited ways. It sounds like conventional wisdom, and isn't one of their points to challenge conventional wisdom? :)
The left-hand side: Pretty good, and most would do well to follow this advice. Remember, however, this was written by a VC firm. This isn't a list of things good companies do, it's a list of things that Sequoia portfolio companies do when they make Sequoia money. To be fair, the overlap is notable. Just remember where the incentives are for a piece like this.<p>The right-hand side: Steve Blank aptly defines a startup as "an organization formed to search for a repeatable and scalable business model." So a business plan written by a startup is, by definition, all lies. They're a fine exercise as long as you're grounded by the fact that you'll end up with 20 slides of pure bullshit. (Read: Don't put real effort into writing business plans, build a company instead.)
Nice list and all, but I find myself wondering just how many of these elements of sustainable companies were exhibited by (Sequoia-funded) Color Labs...
This one page succinctly conveys what any entrepreneur should think when building a startup be at starting phase or fundraising phase.<p>Btw, Sequoia has one of the best "about us" page (<a href="http://www.sequoiacap.com/about" rel="nofollow">http://www.sequoiacap.com/about</a>). It's focused on their customers (showing entrepreneur's pictures in early days and how they serve entrepreneurs) rather than glorifying their ninja investing skills.
<i>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.<p>RICH CUSTOMERS
Target customers who will move fast and pay a premium for a unique offering.</i><p>Sure, I too would love to invest only on huge markets composed only by the world's 1%.
"Your browser appears to be out of date. We highly recommend you upgrade to avoid problems while you use our site."<p>Then it won't go to the page. I know I'm one of the few stuck with a browser version at work I have no control over, but come on.
Here's an idea: avoid funding 1 company per year and blanket fund with minimal due diligence a whole batch for <$30,000 each so long as they have a business plan (as seen in article) meeting those objectives (as seen in article.)