Raising Capital: Why Is It So Difficult?
Raising capital for a startup or an exiting small business is without question one of the most challenging aspects of an entrepreneur starting a business or growing a business. The stories are manifold of entrepreneurs and small business owners becoming both frustrated and discouraged by the amount of time it takes to secure capital, the rejections they endure, and the lack of linearity and progress checkpoints over the course of the fundraising process. Complaints we hear repeatedly from entrepreneurs regarding fund raising include the following:

The Stress and Frustration of "Maybe." It is common for a prospective investor - either an individual investor or a venture firm - to show enthusiasm for an opportunity upon initial review and then to leave the entrepreneur in limbo - forwarding neither a definitive "no" nor a definitive "yes" to the investment proposition. 

Here the golden rule is in effect - namely those that have the gold make the rules. While investors expect you as the entrepreneur to provide a very specific timeline in regards to growth metrics and return on their prospective investment, this expectation is too often not reciprocated in regards to an investment decision.


Lack of Urgency. A great challenge in raising capital for a private company is the lack of natural urgency. Because there are so many more sellers of private company stock than buyers, attempts by the seller to create urgency by setting time periods within which the investment must be consummated and/or limiting the amount of stock that can be purchased are often viewed by buyers as simply sales techniques and are not credible. The mindset among investors is often if it is an attractive opportunity today then it will still be an attractive deal next month. This is especially true for emerging company investments, for which the most likely exit is via a sale of the business or a public offering, events most likely to occur 3-5 years or more in the future.
 
So how can an entrepreneur level the playing field, mitigate the balance of power and accelerate the fundraising process? Here are three quick ideas, gleaned from 5 years of fundraising experience.


these are some of the most common mistake aspiring entrepreneurs like you and exiting entreprenuer like you make when raising capital for your business
making these mistake can lead you not to get the start up capital you need for your business
Proper capital raising is one of the many topics that I took time to cover that http://www.facebook.com/pages/How-to-start-and-succeed-in-small-business/137075066463972 from 5 years of capital raising experience.