James River Capital Founder Advises Companies To Think About Funding
An entrepreneur will need some source of money when trying to get a fledgling business off the ground and moving forward. Paul Saunders of James River Capital has advice for various funding options. The first viable source of business funds will begin with the entrepreneur looking at their own money sources. A new business owner can utilize savings, credit cards or close friends and family. This method of providing cash to a new business is called Bootstrapping. Mr. Saunders thinks this is a great way to start and may attract investors who see that the owner is contributing to their own enterprise.
Paul Saunders knows about start-ups since he is the co-founder of James River Capital. He co-founded this independent investment firm in 1995. He currently is the Chairman/CEO of this business. The company provides clients with experienced investment advisory services. This extensive background in finance means that he is aware of different ways to raise capital for a new company. He also recommends that start-ups look at Crowdfunding as a way to raise the needed money. These online platforms allow users to pledge funds to different projects, and the user receives some value in return.
Another funding source will be business loans. These may be provided by a local bank or through the Small Business Administration. An entrepreneur will need to have a solid business plan, and these loans require a significant amount of paperwork. The loan approval process may also take a long time. The SBA loan can be qualified for more easily, but any loan will require a good credit score. Mr. Saunders also recommends going to a local Chamber of Commerce to see if there are local funding sources available. Investors are also a source of money for new businesses. These may be angel investors or venture capitalists. A detailed presentation of the business idea and anticipated revenues will be required when working with investors. Venture capitalists will also expect a larger return on their investment in a few years. A company may also trade equity by offering stock in the business. Equity will prevent the business owner from taking on new debt, but they will receive the money needed to run the company.