Why Business Fail To Raise Finance

Business Fail To Raise Finance

Why do businesses fail to raise finance? Good question…

If you are running your own business then you have something about you, you must be in some way capable, competent and knowledgeable. So why do so many businesses fail to raise finance?


It is all about specialism. You are good at what you do but the skills don’t necessarily transfer across.

Take this story of the Surgeon and the Mechanic…

Mr Jones was a surgeon. His car had broken down and he took it to his local garage. The mechanic had the bonnet up, was testing parts and putting the car back in working order. The conversation went something like –

‘Mr Jones, I’ve thought about what we both do for a living and why you get paid so much more than me’

‘Why so’ asks Mr Jones

‘Well, I open up the engine, check all the parts, fix the injectors, mend the pipes, I know exactly how the engine works. Then I fix it, put it all back together and it works. So really, we do pretty much the same thing but I get paid much less than you, how is that fair?’

The surgeon pauses, then quietly says,

‘Try doing what you do with the engine running…’

This is pretty similar to a small business wanting to raise finance. If the engine wasn’t running then they could probably achieve it far easier.

However, we all know that in a small business the engine is always running and that means you cannot do everything properly.


Just as you would outsource your bookkeeping, accountancy, window cleaning, car servicing etc etc, then outsource your finance and funding.

You do it because you either don’t have the time, have better things to do, or simply recognise you lack the requisite skills.

Forget blaming banks and a lack of lending to businesses, yes it is partly to blame but concentrate on what you can change to your advantage.

A business can raise finance, just be the surgeon not the mechanic…

By Lime Consultancy

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