Entrepreneur’s often make these simple mistakes during due diligence that cost them the ability to receive funding. Do any apply to your startup?
Having trouble viewing the infographic? Read the original article here.
How to Avoid Simple Mistakes
The due diligence process does not have to be a negative. In fact, it presents entrepreneurs with options on how to greatly improve their company! Many of these issues can be addressed in advance:
- Always conduct background research on potential investors to find out what information they will request during due diligence.
- Understanding what an investor looks for in an investment can provide leverage during your pitch.
- Construct an advisory board for unbiased feedback and validation of your product or service.
- Learn and grow from other entrepreneurs! By developing and expanding your network, you can share feedback and advice with one another on lessons learned through entrepreneurship.
- Finally, understand and don’t lose sight of the vision for your business. Keeping a company small and close to home will require a vastly different journey than becoming the next Apple or Amazon. Take a serious look at your business. What goals do you want to achieve in the future?
Make your company’s strong, transparent responses to due diligence a selling attribute that hooks the investor!
Infographic edited by Rebecca Cox
