With subtitle 100 Insider Rules for Beating the Odds–From Mastering the Fundamentals to Selecting Investors, Fundraising, Managing Boards, and Achieving Liquidity, Randy Komisar has an ambitious goal in writing his new book Straight Talk for Startups and he executes!
Komisar is a Silicon Valley veteran (and brilliant) investor. I have already mentioned here his previous books The Monk and The Riddle and Getting to Plan B, as well as many of his advice. In his new book, he is trying to give precious advice because “entrepreneurs today don’t have the luxury of learning by trail and error.” [page xix of the introduction]. The Times They Are A-Changin’ and the stakes are just too high…So Komisar gives “the crucial things, like creating two financial plans, not one; hiring part-time epxerts rather than full-time trainees; knowing what to measure and the pitfalls of doing it too early: and the criticality of unit economics and working capital.” [Page 1]. I have to admit I was a little surprised with reading the previous sentence, but after discovering the next first rules, Komisar convinced me again.
If you do not have any time for reading the book, which would be a real pity, at least have a look at his 100 rules. Here are the first 28 form his Part 1 – Mastering the fundamentals:
#1: starting a venture has never been easier, succeeding has never been harder
#2: try to act normal
#3: aim for an order-of-magnitude improvement
#4: start small, but be ambitious
#5: most failures result from poor execution, not unsuccessful innovation
#6: the best ideas originate with founders who are users
#7: don’t scale your technology until it works
#8: manage with maniacal focus
#9: target fast-growing, dynamic markets
#10: never hire the second best
#11: conduct your hiring as if you were an airline pilot
#12: a part-time expert is preferable to a full-time seat filler
#13: maage your team like a jazz band
#14: instead of a free lunch, provide meaningful work
#15: teams of professionals with a common mission make the most attractive investments
#16: use your financials to tell your story
#17: create two business plans: an execution élan and an aspirational plan
#18: know your financial numbers and their interdependencies by heart
#19: net income is an opinion,, but cash flow is a fact
#20: unit economics tell you whether you have a business
#21: manage working capital as if it were your only source of funds
#22: exercise the strictest financial discipline
#23: always be frugal!
#24: to get where you are going, you need to know where you are going
#25: measurements comes with pitfalls
#26: operational setbacks require swift and deep cutbacks
#27: save surprises for birthdays, not for you stakeholders
#28: strategic pivots offer silver linings
It is a great complement to Measure What Matters and the proof (if what was needed) of how great great venture capitalists are…!
More to come.