There are many individuals that want to be entrepreneurs but get their plans turned down by potential funders for various reasons. Here are some of the mistakes to avoid when dealing with funders:
Funders don’t want to hear you have no competition. This sends the message that there is no market to fulfill—there are no customers for the needs you are focusing on. However, if there is a market, and thus an actual need to fulfill, then funders understand there will be competitors that you have not found yet, or you are trying to get them to disregard the competition by merit of your plan. Do not attempt to fool them because funders can find the competition through their own research, which serves only to discredit you and makes you appear to be dishonest and/or incompetent.
Do not think about fast returns from a business or product until direct competitors are in the market. This is a mistake if not paired with a description of the short term profits and how they will change the company. Investors want to put their money in companies with future potential and are wary of get rich quick schemes that promise quick returns with little long-term advantages. They want a business that has steady growth and good projections.
While portraying your company as ready for a strategic sale is attractive to investors, you have to have evidence. This should include cases of like purchases by that company and include details of how the situations are the same. You also want to prove how it will be cheaper for such and such to purchase your business than to build the same work, brand, and products on your own. Your claims have to be backed with facts otherwise investors will have a dim view or your planning.