When attracting capital, a not insignificant activity for entrepreneurs, the biggest mistakes are made. This is the reason that successful entrepreneurs spend at least half of their time securing funding.
The smart entrepreneur always looks one step ahead. Any weakness in their last deal affects future deals. That’s why they avoid these mistakes:
1. Attracting too many investors
The fewer investors, the better. Many entrepreneurs know this principle, but few follow it. It ensures more stability and clarity. The chance of an investor pulling out is much smaller.
2. Attracting unattractive investors
You should not only pay attention to the quantity of investors but also to the quality. Think twice before bringing an investor on board. The reputation of the company skyrockets when capable investors are around. Often, it’s the best advertisement you can make for the company.
3. Not paying yourself
Every smart investor will say: pay yourself. Not a huge amount, but enough to develop yourself daily. Many beginning entrepreneurs pay themselves nothing so that the company can grow. The moment you don’t pay yourself, investors will expect that they don’t have to pay you.
