Many entrepreneurs don’t have a clue about how venture capitalists think – even me, who has likely poured over hundreds of books on business, start ups and entrepreneurship. I read a great book recently that really shoved opened my eyes and, true to the title, gave me a good hard kick in the ass.

Written by Rob Adams, “A Good Hard Kick In the Ass – Basic Training for Entrepreneurs” discusses how venture capitalists (VCs) decide what start-up companies to invest their Daddy Warbucks big money in. Seed level investment usually starts at 1 million with Series A (first level) usually comes in at 10 million. With those numbers, you can bet these financiers have some requirements. And, this very well written book describes exactly what that expectation is.

Start up financing can be tricky and many entrepreneurs think that, if they have a great idea and a detailed business plan, they will be able to secure financing from venture capitalists. As it turns out, the heavy weight VCs could barely care less about your business plan and they see ideas as a dime a dozen. They are looking for a great management team and market validation.

Both of these concepts – building a great management team and market validation – will likely be the subjects of more blog posts to come, but know this – if you get this book (I was lent it by my dear friend Naomi Friedman) you won’t regret it. It’s going to blow away your preconceptions and put you on the path to actually getting real venture capital investment in your start up if you heed its advice. Even if you decide to not seek outside capital in your business, it will help you run your business better. Check it out and tell me what you think!

Together, we are stronger!
Vicki Flaugher, CEO
Smartwoman Guides