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.
2019 KPMG Admission Scholarships into Nigerian Federal Universities
KPMG, a top global tax, auditing and advisory services organization developed a program to sponsor selected candidates through their tertiary education.
Per the KMPG website, see further information below
Candidates must meet the following criteria:
- Have completed their secondary education at a state-owned Government school within the last 2 years.
- A minimum of 5 Distinctions (As & Bs) from their WASSCE (including English and Mathematics).
- A minimum score of 230 in the Unified Tertiary Matriculation Examination (UTME).
- Already have an admission letter or a provisional letter of admission to a federal university in Nigeria.
How to Apply
Send an email to NG-FMKPMGScholarship@ng.kpmg.com with the following details: Name, Residential Address, E-mail Address, Phone Number.
Also attach the following documents in a zipped folder:
- WASSCE Certificate
- UTME Result Slip
- JAMB Result Slip
- Provisional Letter of Admission/Letter of Admission to a Federal University in Nigeria
- Birth Certificate
- Certificate of Origin
Kindly state the code KSP2019 in the subject of the email.
*The deadline for application is 25th October 2019“
Need Funding? Discover funding category applicable to your business
If you’re an entrepreneur and ever wondered types of funding you should target for you business, the first step would be to identify the stage your business falls into. Assuming you already know that, the next step is to to look at funding options available to you. Below is a list of funding sources applicable to different stages of a business venture:
Idea stage: Many entrepreneurs belong in this category. This group aspire to start a business or want to switch over from paid employment to entrepreneurship.
Idea stages are characterized by
- Only idea for product or service exists
- Product or service is not yet validated
Idea stage business sources of raising capital include bootstrapping, friends and family, partnerships, angel investors, incubators, business plan competitions, charities and foundations, government programs, upfront payments and private placement.
Start-up stage: Businesses in this are operational and have validated their product or service.
Start up stages are characterized by
- Initial sales of product already achieved
- Customer base is small
- Business is in survival mode
- Requires funding to stay alive and gain traction
Start-up stage business sources of raising capital include bootstrapping, friends and family, partnerships, angel investors, incubators, business plan competitions, charities and foundations, government programs, international development funds, early stage venture capital firms, crowd funding, upfront payments and private placement.
Growth stage: In this stage, business traction is well established, market demand for product or service is growing at a gradual pace.
Growth stages are characterized by
- Increasing number of customers
- Growing customer base
- Need funding to increase size and capacity
- Typically profitable
Growth stage businesses usually raise capital from partnerships, VCs, Angel Investors, Development Funds, Private Equity, Government programs, Banks, Private placement, Charities and organizations.
Mature stage: Business organizations in this category typically do not look for funding unless they require funds to diversify into new markets or industry. Mature stage businesses have sufficient capital through their well established operations.
Mature stage businesses are characterized by
- large and loyal customer base
- Average and predictable sales growth
- product saturation in market
Mature stage businesses can raise capital if they require, through banks. private equity, international development funds, private placement and IPO.
Now you have a clearer idea about suitable funding sources for your business, you are able to make informed targeting decisions when it’s time to raise that capital for your business.