Are you an entrepreneur who has tried (and failed) a good number of times to raise capital to fund your business? Chances are that each rejection you got for your efforts felt like a major setback to say the least. From a mental perspective, entrepreneurs who have had these experiences understand how badly it can affect confidence and the passion to keep going. This in turn can lead to mental roadblocks which further reduces the chances, or totally prevents an entrepreneur from attracting capital.
Here are 5 mental roadblocks that prevents entrepreneurs from raising capital:
- Closed mindedness: You have a mind blowing idea for your business, which is good. The great thing though, is for that idea to move beyond being an idea to reality. In numerous situations, entrepreneurs feel partial to that original idea and fail to embrace benefits of pivoting their idea for it to be realistic. What eventually happens is that the idea ends up being just an idea, and never gets to be implemented.
- Unreasonable expectations: Sometimes entrepreneurs want to raise huge capital in a swift manner. The realistic approach is to raise capital increasingly in a series of progressive steps. The ability to raise more capital grows with time.
- Blame game: You resort to claim that nobody wants to give you capital. In the real sense, nobody owes you capital. It is your responsibility to learn how to communicate and convince investors to give you the capital that you require. People will invest if they are convinced your business raises an interesting investment opportunity for them.
- Fear of failure: As an entrepreneur, you have to get used to rejection when it comes to raising capital. a very high percentage of funding applications are rejected. Rejection is actually a normal occurrence when it comes to raising capital and does not mean failure. Application rejections are opportunities to find out reasons for rejection, and also to refine your proposition to be better prepared for subsequent applications.
- Capital is Scarce: On the contrary, capital is available and abundant if you know how to access it. Investors actively look out for business ventures to finance, with expectations that their investment will yield profitable returns. You just have to position your business adequately for investors to have the right amount of confidence to give you the capital that your business requires.