Ignorant e-commerce founders do it better?

Interesting post from VC Fred Destin:

"I have been talking to a number of e-commerce startups recently who share a few things in common.

• They do not anticipate any knowledge of their end market
• They do not pretend to understand what their customers want
• ... nor where they can be found online

They understand the basics of product and pricing and how to manage their supplier relationships; they are competent but not stellar on back-end and customer service.

Where they shine is precisely where you would expect them to be weak: they are entirely ignorant of, and refuse to assume any knowledge of, what method will work in terms of attracting customers. They will continuously spend small amounts of money across channels and simply measure, measure, measure (or correlate, correlate, correlate). They throw data at the problem. "

Read the whole post here.

Straight from Sequoia Capital: key drivers of success

Great stuff from venture firm  Sequoia: key drivers of success for any startup looking for venture capital to drive growth.

Here there are:

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.

Team DNA

A company’s DNA is set in the first 90 days. All team members are the smartest or most clever in their domain. "A" level founders attract an "A" level team.

Agility

Stealth and speed will usually help beat-out large companies.

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.