Keys to the Vault: Lessons from the Pros on Raising Money and Igniting Your Business [Hardcover]

Do you have a business idea that's so big that you'll need millions of dollars just to get started? If so, Keys to the Vault will add great value to your search for those funds while also helping you make your business more successful.

Keith J. Cunningham has clearly been there and done that when it comes to financing start-up enterprises. His advice, examples, and war stories resonate with my 35 plus years of experience in working with successful start-up companies. Most entrepreneurs would be lucky to find someone with his Mr. Cunningham's experience and smarts. Now, for just the price of this book, you can gain from his solid advice.

While the nuances of Mr. Cunningham's advice are quite complex, the key principles are quite simple. The book opens with the example of how Mr. Cunningham started a successful egg delivery business as a youngster and goes on to next spell out what he calls "The Universal Formula for Success" which I've simplified as follows:

1. Find out what potential customers want.
2. Assemble an organization and resources to feed that want.
3. Operate the organization to serve the need.

From there, he identifies six keys to going from having a business idea to being in business. I've rephrased those keys into the following:

1. Understand how potential investors will think about your idea.
2. Develop the best business plan you can.
3. Assemble a credible business team that will do a great job of implementing the plan.
4. Select the right legal and financial structure.
5. Raise money from investors.
6. Take the right risks and adjust your actions based on learning from your mistakes.

The book is then divided into six parts which explore and explain these keys.

The back matter includes helpful material like sources for raising money, business plan resources, a sample executive summary of a business plan, a description of how a professional investor evaluates your plan, a glossary of terms, and a reference to his Web site for more resources.

I thought that the most useful part of the book came in the part concerning how to raise money. Mr. Cunningham does a good job of warning entrepreneurs not to over value their enterprise and to be realistic in negotiating: The first offer you get may be the only offer you receive.

The next most useful part is in explaining how a professional investor looks at a business plan.

The writing is easy to follow and the stories are compelling. I think you'll find yourself having a hard time putting the book down.

What are the less valuable parts of the book?

Considering that there will be tens of thousands of businesses launched without a need for major capital for every one that will need lots of money, I thought the discussion of how to bootstrap a business start-up without much capital was thin. Most strong business start-ups can raise much of the money they need through customer advances and outsourcing to capable organizations. In fact, that's the main reason to have a great business plan: You'll probably find ways to avoid needing as much capital as you might otherwise have used. Did you know that Michael Dell didn't raise any substantial external capital until just a few months before he took his company public? That's what a great business model and plan can do for you.

I also thought that the business plan discussion could have been developed in more detail. I would have liked to see this section explain more about how you gain the knowledge and perspective to create a terrific business plan. Most start-up leaders I meet have never developed a business plan before and certainly haven't seen a good one. As a result, they don't know where to begin . . . even when someone gives them a color-by-numbers outline of what should be in the plan.

If, however, you are an industry heavyweight with a solid start-up concept but don't know much about raising substantial amounts of equity, Keys to the Vault will be an excellent introduction to that subject.

If you don't need very much capital, much of this book's good advice will be wasted for you.

Opening with the foreword written by Anthony Robbins, possibly the world's most renowned peak performance leader, "Keys to the Vault" kicks off with an exciting feel of opportunity, entrepreneurship, and overall success. Robbins explains how you can benefit from someone else's trial and error and create a fast path to the same type of success if only those distinctions are made available. Keith Cunningham seeks to provide that level of distinction in his valuable words that fill this book.

As Cunningham makes clear, desire and drive are not enough to springboard you into your own business. He brings the reader his insight and learnings based upon his 35 years of experience in the world of business. Spawned from that experience, he presents his 6 keys to success that will take your idea from being just a mere thought, to being a full blown successful reality.

The six keys, introduced and succinctly summarized in chapter 2, are:
1. Think like an investor
2. Research and prepare a great business plan
3. Attract a team that's smarter than you are
4. Get the correct business and capitalization structure
5. Sell the deal to the investor
6. Take risks and rebound from mistakes

So now you have the six keys, I've given it all away... not quite. This book gets it's magic from the pages that follow. The book contains critical information that further defines each of the keys. For example, Cunningham defines the different types of investors and helps us to better understand what exactly the professionals are looking for and how to best present your idea to them.

The second key explains the importance of a business plan, the questions to ask yourself in order to attract investors. This chapter also has the feel of moving you out of the "dream" stage and into the "reality" stage.

Attracting a Team that is Smarter than You. This section clearly illustrates the importance of a great team and why your brother-in-law or high school buddy might not be the best fit for a business partner.

The book follows with chapters delivering gems as the six keys unfold and the experience of professionals awaken in front of you. Additionally, the appendixes offer additional readings and websites to further advance your opportunities.

Consider this your business advisor, at least one of your advisors on your quest for your dream. Owning a business doesn't have to be a dream, it can be a reality. Just prepare yourself, educate yourself, and use the drive and determination you have within to make it a success. As the title suggests, the money is out there, you just need to know how to create a compelling plan and ask for it.

When I was first planning the start up of my business I had MANY, MANY unanswered questions, this book fills in the gaps and more. Like many people I worked hard during the start up of my business - I just did not have the answers. I had never started up a business and made many mistakes up front that made my life difficult for the first 3 years. Let Keith be your Mentor in business and learn from someone who has done what you want to do - create/run a successful business. What I learned from Keith will save me a bunch of time and help me succeed in business at an even higher level than I imagined. Keith makes it simple, he gives you the recipe, tells you what to do, all you have to do is execute.