2 concerns before borrowing seed money for business start-up
I'm worried they won't like my idea (or} I'm afraid they won't think I can do it.
These, like all other expectant obstacles about raising seed money, are presenting problem. Your real problem is that you don't sufficiently like your idea or that you don't think you can do it.
What is it that you don't think they'll like about your idea? Odds are that's what you're not sure of yourself. What is it that they'll think you can't do? Turn the problem into a specific complaint or fear rather than a general worry. For example, "I'm worried they won't like my idea of relying entirely on Internet sales rather than a storefront," or "I'm worried they won't have confidence in my ability to manage money."
You need to start over, from scratch, and reeducate yourself about your business plan, beginning with the specific example you came up with earlier. But don't stop with just that one item or concept. Validate every assumption. Run all your cash flows again. Check your revenue and expense projections. Do another round of market research. Unless you have total confidence in your plan, no one else will.
Create an environment of trust¡ªSince this problem is inside your head, the trust you need to create is internal as well. Hopefully, developing more expertise will lead to greater self-confidence.
If after reeducating yourself you're still unconvinced of your idea or your ability to carry it out, don't bother conducting an internal appeal. Either you're looking at the wrong business or you just don't have the personality to be an entrepreneur.
I'm afraid they'll steal my idea.
Let's look at this realistically for a moment. In order to get someone to lend you start-up money you're going to have to develop incredible expertise, create professional as well as personal trust, and in the process jump through hoops, stand on your head, and juggle three balls.
All this to get them to invest just a portion of the money needed to start the business. Yet you're afraid that just by hearing your idea all those barriers to investing or lending that they have will immediately crumble and they will want to invest all the time and money involved in starting the business. You're worried your Aunt Sadie will become not just an entrepreneur but an unethical one at that.
If through your research you've learned that your Aunt Sadie is actually a combination corporate raider/predatory entrepreneur then you have a right to be afraid.
Create an environment of trust If you feel that you can't trust your friends and family, which deals with overcoming personal problems.
tags: business, money
Comments
No comments so far for this article