Yet, according to many sources , over 90 percent of all businesses are started and grown with no equity financing, and many others would have been better off without it. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. Of course, every company needs these, in due time. You need a prototype. MORE >>

Quantify existing skin-in-the-game, by insiders and outsiders, including sweat equity and capital. People ask me if they really need ANY business plan, unless they are looking for an outside investor. Things that make it investment-grade for outside investors will also benefit you, since you are the ultimate investor. Executive team. MORE >>

The intent of this question is to determine the level of commitment of founders, both cash and “sweat equity,” and how much others have already invested into this plan. If you really want to impress a startup founder as a potential employee, or you want to be a smart investor, you need to know the right questions to ask. Now you know. MORE >>

Investors like to see that you have committed personal funds as well as “sweat equity,” and they like to see real progress at this level. Every investor expects to see some business traction, both before and after a funding event. Traction means forward progress. If you have a product description, that’s necessary, but not sufficient. MORE >>

You know how to bootstrap a business, build it from nothing, and burn sweat-equity for long hours to push your dreams to reality. Many entrepreneurs forget that their success is more about helping other people than about personally becoming famous, or overcoming the odds and getting rich. Watch your use of personal pronouns. MORE >>