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Dont Invest Too Much Personal Funds
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Every entrepreneur believes in the business proposal. So some of them just cannot understand why a business investor will not want to finance the project.

However, an entrepreneur who wants to operate a successful new business needs to view the investor's reports dispassionately and try and eliminate the mistakes so that the entrepreneur has greater chance of getting business capital in the future.

Sometimes, an entrepreneur will believe in the project so much that he/she decides to fund the new business proposal. However, there is a great risk involved in this. If the new business does not get off the ground and do well, the entrepreneur stands to lose all personal finances.

However, on the same note, business investors don't like to invest in projects in which they find that the entrepreneurs themselves have not invested any money. This sends a wrong message to investors.

Another mistake that entrepreneurs often make when developing business proposals is paying them too much. This is one of the worst signals an entrepreneur can send investors. Some new business owners calculate the difference between what they are being paid and what they feel that they are truly worth as a debt. However, most business investors do not like this approach and do not feel comfortable in funding a business ventures that operates under this approach.

One of the biggest mistakes that entrepreneurs make while developing their business ventures is not completing estimating their sales potential. This is a huge mistake. Most investors looking to invest capital look at this section of the business proposal most closely.

Some business investors try to fool investors by pulling all their Intellectual Property into a separate holding company and only licensing the IP to the company seeking investments. Venture capitalists are not fooled by this technique. In fact, entrepreneurs adopting such a technique are only lowering their chances of capital access.

Another common mistake that entrepreneurs make is not having a strong management team. Angel investors place strong emphasis on the bios of the management team. They like to see who the new business has been able to attract.

Finally, another common mistake that entrepreneurs make is not having sufficient number of investors. Investors are always interested in finding out if other people are also interested in funding the project. They like to have details of all sources of seed funding for the company.

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