Most people think in a very linear fashion. When they discover a potentially promising investment they look at their income and expenses and say “I just can’t afford it”, and pass up many good deals. Entrepreneurs are not constrained by money and think more non-linearly.
When exposed to a promising investment they look at its risks and potential returns and say “Is it worth it?”. If the answer is yes they move on it. If they are short of funds they compile their reasoning and pitch the idea to debt or equity partners. If after their pitch no one buys their reasoning, perhaps it was not a good idea.
