Question of the Day:
Can your business mission be summarized on the back of a business card?

If not, then I want to make sure you all see this: Sequoia’s Gospel of Startups More True Than Ever. In it, Mike has republished Sequoia Capital‘s 1st Gospel for building successful startups called Elements of Sustainable Companies. it includes things like:

• Clarity of Purpose: Summarize the company’s business on [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… etc.

Mike is right that these principles are even more important in the current market (and we’re glad others are fans of Teddy Roosevelt!)

But also I want to draw your attention to Sequoia’s 2nd Gospel, a list of tips for how to write winning business plans. In Writing A Business Plan, the firm says: We like business plans that present a lot of information in as few words as possible. The following format, within 15-20 slides, is all that’s needed.”. So here’s the list…

Company Purpose:

• Define the company/business in a single declarative sentence.

Problem:

• Describe the pain of the customer (or the customer’s customer).

• Outline how the customer addresses the issue today.

Solution

• Demonstrate your company’s value proposition to make the customer’s life better.
• Show where your product physically sits.

• Provide use cases.

Why Now

• Set-up the historical evolution of your category.

• Define recent trends that make your solution possible.

Market Size

• Identify/profile the customer you cater to.

• Calculate the TAM (top down), SAM (bottoms up) and SOM.

Competition

• List competitors

• List competitive advantages

Product

• Product line-up (form factor, functionality, features, architecture, intellectual property).

• Development roadmap.

Business Model

• Revenue model
• Pricing
• Average account size and/or lifetime value
• Sales & distribution model

• Customer/pipeline list

Team

• Founders & Management

• Board of Directors/Board of Advisors

Financials

• P&L
• Balance sheet
• Cash flow
• Cap table

• The deal

That’s it! Straight form the burning bush otherwise known as Sequoia Capital! Good luck.