It is not enough to have a brilliant idea to get people to volunteer to invest in it, but there are many options for funding. Entrepreneurs have creative and classic approaches available to them. James River Captial, CEO and founder, Paul Saunders, has advice for entrepreneurs seeking funding for their business.
Startup Funding Tips
In 1995 James River Captial was founded by Paul Saunders and has been successful since. The emphasis is not on competition but on creation, a secret that Paul likes to share.
Do It Yourself
Entrepreneurs can fund the business with credit cards, savings or borrowing from people they know, which is known as bootstrapping. This is the easiest place for entrepreneurs to start, and it can take care of some if not all the startup costs. No control or equity will have to be given up which means taking the time to increase savings could be worth it. Contributing your own money increases the chances that someone else will invest in the business.
Clients’ money is used by venture capitalists to invest in companies that appear to have the potential for a high return in a short period of time. There investors are looking for 3 to 10 times the investment within a 5 to 7-year time frame. Entrepreneurs should be prepared with a business plan that is detailed and thorough before pitching them. Ideas can be pitched to the National Venture Capital Association or found through contacts you already have.
Businesses can also be funded by selling stock in exchange for capital. There is no debt associated with this option eliminating the need to pay back loans with the income generated from the business.