First, we must examine the following definitions in order to focus the mind:

Absolutecertain; not to be doubted (https://dictionary.cambridge.org/dictionary/english/absolute)

Empiricalbased on what is experienced or seen rather than on theory: (https://dictionary.cambridge.org/dictionary/english/empirical)

Reverse reality syndrome: believing ones own lies (Harry Le-Moine)

Main Reasons Why Deals Do Not Get Funded (you can also use the content shown below to start your due diligence list)

  1. Principals have an adverse credit history.
  2. Inability to deliver a project overview in under 3 minutes. 
  3. Not having a short overview that is readily available following an initial telephone conversation. 
  4. Obvious lack of experience.
  5. Poor appearance, manner and words of the principals. 
  6. Principals ramble on. 
  7. Poor advisors.
  8. Over egging the deal.
  9. Too many directors, especially those that do not add value.
  10. Family feuds.
  11. Anomalies in the psychometric profiles or the principals. 
  12. Knowingly or unknowingly giving false information.
  13. Weak due diligence.
  14. Not involving expert opinion.
  15. Stating facts without proof sources (facts that turn out to be wrong or misleading).
  16. Failure to comply with reasonable requests for more detailed information.
  17. Failing to return phone calls in a timely manner.
  18. No SWOT analysis - weak market research - the inability to understand the competition.
  19. Plan not detailed enough.
  20. Plan too complicated.
  21. No business plan.
  22. Not knowing the numbers.
  23. Financial projections are flawed.
  24. The business plan does not justify what the money is needed for and when (no business model).
  25. The business plan is dull and uninspiring, written by dull and uninspiring people. 
  26. Failure to describe all processes involved in the business.
  27. Failure to describe or implement KPIs to measure performance v plan.
  28. Lack of flexibility by the principals/unwillingness to restructure the deal.
  29. Valuations beyond comprehension. 
  30. Where applicable no exit strategy. 

There are almost always solutions to complex problems
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