When raising money, there’s at least one truth that’s difficult for entrepreneurs and investors to candidly discuss, even though it’s a vital factor in the decision-making process of most investors.

Many entrepreneurs, realizing that a business plan represents a significant investment of time, wonder if they could perhaps create an executive summary and start shopping it around while they work on the full plan …

I make a living by helping entrepreneurs prepare for the capital raising process. I’ve seen angel investors, venture capitalists, and trade associations strongly recommend that you should NOT hire people to help with your financial projections and business plans. Obviously, I disagree with this recommendation, but I believe there are several basic principles that apply to entrepreneurs trying to raise money that we should all be able agree on, leading to mutually beneficial coexistence.