VC Cliché of the Week

I've been getting some suggestions for cliches via email and I am going to start using them every now and then. We'll start with one sent in from a guy I've known since college who is also in the VC business. He told me about being in a meeting and blurting out "that vacation didn't match the brochure".

I smiled when I saw that email because I know the feeling. You go for something; a hire, a partnership, or a new investment, based on a certain set of facts and promises. And then it doesn't work out. You feel like you were sold a bill of goods. But when the vacation doesn't match the brochure, you only have yourself to blame. It means you didn't do your homework.

My wife (nineteen years yesterday!), the Gotham Gal, does all of our vacation planning. She looks at the fancy websites, but then she does blog searches, talks to people who have been there. She does her "diligence". It's a ton of work, but it pays off because we have never gone on a vacation that didn't match the brochure.

The same approach has to be used if you are in business. If you are a VC, you don't need to read the business plan (the brochure) cover to cover, but you do need to do your diligence. If you an entrepreneur making a key hire, you don't need to spend a ton of time on the resume and prepared references. Even the interviews will only tell you so much. You need to pick up the phone and talk to people who've worked with and for the person in question to truly get a feel for them.

The bottom line is you can't rely on the brochure in whatever form it may take. Because if you do, the vacation will surely not live up to it.

Comments

[simon]

this is one of my personal favourites out of all the cliches you posted ..

[Ben Rodda]

This doesn't just apply to VCs either. Nothing I hate more than going to interview at a start-up and finding out that they want be to do something not in the job posting or that is basically "trained monkey work".
Actually the only thing worse is interview consulting. That's where they ask you in for an interview and try to get you to solve there problems for you without the intention of ever hiring you.
Congratulations on your anniversary; my wife an I celebrated our 2nd anniversary yesterday too. I guess June 20th is a popular wedding date.

[steve]

I couldn't agree more. Chance does favor the prepared mind.

But I assume we have all also had the experience where the vacation didnt live up to the brochure not because we didn't do enough homework, but because no amount of homework could replicate or anticipate the ensuing real life experience because of the emotional or chaotic or infuriating or magical way life tends to actually unfold.

Case in point: You need to hire a senior team member. You examine resumes, work your network, check references, do interviews, contact colleagues and co-workers and former customers, whatever. You cover every base you possibly can. And you make what feels like a great hire. Awesome credentials, great personality, fabulous prior experience, whatever. Then six months later you (and the new hire) are miserable because say, that person thought they wanted to do a startup but when confronted with that reality, didn't. Didn't want to fly coach. Didn't want to share a secretary. Didn't want to be maitre'd, chef and pot washer. Didn't want to travel and be away from family after all. Etc.

Its not that you didnt do your due diligence, you did, asked the prospective new hire again and again, do you really want the startup lifestyle? Are you OK with lots of travel and flying coach and sharing an assistant, etc. And you got the right answers, genuinely thoughtfully and sincerely delivered.

But your great hire woke up one morning and said, this ain't worth it. Or, what was I thinking? Or, their parent passed away and suddenly that dazzling future exit-strategy pay day just doesn't seem to matter anymore.

As John Lennon said, "Life is what happens while you're busy making other plans."

[Allan]

As a co-founder of a VC-backed firm, I am tortured by clichés on a continuous basis ;-) Here are a couple that find their way into many discussions, although thankfully not targeted at us...

1. "They're walking in the valley of the shadows of death"; referring to the fact that most startups will hit snags in their business plan execution at some point and have to find ways to survive and emerge stronger.

2. "If you don't know where you're going, every direction seems to take you there"; this one refers to the need for a strong vision, business plan and execution.