Final answer:
Errors such as lack of preparation, lack of confidence, and a negative attitude in a business plan can hinder an entrepreneur's success. Also, a business plan that is poorly structured, overly summarized, or informally written can deter investors. Demonstrating belief in the business through personal investment can positively influence investor perceptions.
Step-by-step explanation:
Some common errors made during the preparation of a business plan that can minimize an entrepreneur’s chance for success include lack of preparation, showing a lack of confidence, and having a negative attitude or lack of enthusiasm. These errors can indirectly communicate to potential investors, like angel investors and venture capitalists, that the entrepreneur may not be fully committed or capable of succeeding. Investors often rely on personal interactions with the founders and their business plan to overcome imperfect information about the startup's potential.Furthermore, when startup founders invest their own money into their firm, they demonstrate a belief in its prospects, which can instill confidence in potential investors. On the other hand, a poorly structured business plan with too much summarization, informal language, inappropriate transitions, or an unclear sequence of information can impede the firm's ability to attract investment and advice.