Blitzscaling 07: Mariam Naficy on Lessons From The Dot Com Days and Knowing When To Blitzscale | Summary and Q&A

TL;DR

Mariam Naficy, CEO of Minted, shares her journey as an entrepreneur and the strategies she used to build and scale Minted, a community-based marketplace for independent artists and designers.

Key Insights

• 💪 Building a strong community and involving users in shaping products can be a powerful growth strategy.
• 😑 Maintaining brand expression and focusing on customer service are crucial aspects of scaling a business.
• 😒 Consistent use of analytics and metrics helps track growth and identify areas for improvement.

Transcript

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Questions & Answers

Q: How did Mariam Naficy get into entrepreneurship and start Minted?

Naficy was motivated to start her own business after working in banking and consulting. She co-founded Eve.com, an online cosmetics business, during the first internet boom. She then launched Minted, focusing on crowdsourced stationery designs.

Q: What lessons did Naficy learn from her first venture, Eve.com?

Naficy learned the importance of long-term thinking and avoiding short-term conservative decisions. She also realized the value of building a strong executive team and the challenges of managing a large board of directors.

Q: How did Minted grow its community of artists and designers?

Minted attracted artists and designers through word-of-mouth marketing, consumer marketing efforts, and successful partnerships with retailers like West Elm. The community continued to grow organically as artists referred others to participate in competitions and submit designs.

Q: How did Naficy scale Minted as the company grew?

Naficy focused on hiring and developing talent from within the company, while also bringing in experienced executives for specific roles. She implemented peer feedback and coaching programs to hold everyone accountable. Analytics and metrics played a crucial role in tracking the company's growth and performance.

Summary

In this video, Mariam Naficy, a serial entrepreneur, shares her experiences with building and scaling businesses. She discusses her first business, Eve.com, which she started during the first internet boom. Mariam also talks about the lessons she learned from that experience and how she applied them to her current venture, Minted. She highlights the importance of communities in scaling a business quickly and shares insights on building and managing a successful community.

Questions & Answers

Q: How did Mariam get into her first business, Eve.com?

Mariam was in the basement of a building at Stanford University when she called her friend and asked her to start a business with her. Her friend agreed on the condition that they start an online cosmetics business, and Mariam agreed even though she knew nothing about cosmetics.

Q: How did Eve.com grow rapidly in a short period of time?

Eve.com grew rapidly by focusing on becoming the first online destination for cosmetics. They worked on convincing brands to give them distribution rights and built a strong marketing presence to position themselves as the go-to online cosmetics retailer. They raised a lot of capital, hired a large team, and quickly established themselves as a major player in the market.

Q: Why did Eve.com sell to Sephora LVMH?

Sephora LVMH approached Eve.com to buy them before they even launched, as they were concerned about the competition. However, Eve.com initially resisted the acquisition attempts. Eventually, they realized that the market was becoming more challenging, and decided to seriously consider selling. They went down the path of selling to Sephora LVMH and successfully sold the company twice in a short period of time.

Q: If Mariam could talk to her younger self, what advice would she give in running her first business differently?

Mariam would have advised herself to think longer-term and be less conservative. She would have considered buying the company back herself when the market was going through difficult times, instead of selling to another company. She also reflects on the lessons learned about managing the board, being cautious with VC financing, and making better hiring decisions.

Q: When is the right time to blitzscale a business?

Mariam believes that the decision to blitzscale should be based on various factors and should not be seen as a one-size-fits-all approach. She advises considering lifestyle considerations, being cautious about when to pour on the gas, and being aware that success doesn't always equal blitzscaling. Having a solid strategy, building a strong team, and timing the scaling based on market conditions are key factors to consider.

Q: How did Minted transition from a stationery retailer to a multiple vertical strategy?

Minted started with a focus on stationery, leveraging crowdsourcing to differentiate itself in the market. As they built a community of independent creatives, they realized the potential to expand into other verticals. They gradually added new products such as wall art, fabrics, and home decor. The goal was to create a brand that would last and constantly offer fresh designs by relying on the crowd for decision-making.

Q: What would Mariam do differently when building her community network?

Mariam emphasizes the importance of going slowly when building a community network. She advises not rushing to change policies, starting conservatively with incentives like commissions, and focusing on fairness and good treatment of community members. She learned from the negative reaction to celebrating top earners and realized that highlighting personal growth, learning, and fun rewards were more effective ways to build motivation and engagement within the community.

Q: How does Mariam reconcile the idea of hierarchy within the community and avoiding direct monetary incentives?

Mariam believes that progress can come in many forms besides direct monetary incentives. She mentions that being included in marketing materials or receiving feedback from the Minted team can be seen as treasures within the community. Building a hierarchy can be achieved by offering various forms of recognition and incentives based on personal and professional growth.

Takeaways

Mariam Naficy's experiences with Eve.com and Minted highlight the importance of building and scaling businesses through the deployment of communities. She emphasizes the need to think long-term, be cautious with fundraising, and focus on creating a strong brand and customer experience. Building a community network requires careful policy design, fairness, and clear communication. Minted's success demonstrates the power of communities in driving growth and innovation.

Summary & Key Takeaways

• Mariam Naficy founded Eve.com during the first internet boom, which was eventually sold to Sephora. She then started Minted, an online marketplace for independent artists and designers.

• Minted began as an online cosmetics business but pivoted to focus on crowdsourcing and curating stationery designs. The company expanded into art, fabrics, and home decor.

• Naficy emphasizes the importance of community and the involvement of users in shaping the products and designs on Minted.

• Minted achieves growth through a combination of organic growth, word-of-mouth marketing, partnerships with retailers like West Elm, and effective use of analytics and metrics.