This blog is a part of the "Cleaning House" series on preparing your business for fundraising. See the first article on How to Prepare Your Business for Funding, and our second article on Cleaning House: An Audit for Your Business.
Whether looking for funding, trying to locate an investor or even selling a business outright, one of the most critical questions to consider is whether to disclose an issue. These are questions to ask pre-funding. Generally, when in doubt, disclose. Ask, "is this something I would want to know if I was investing?" This process will help the entrepreneur think like an investor rather than like a business owner/developer. Think like an Investor. Would you invest? If not, why not? Make changes accordingly.