There’s no doubt that all people have thought of a business idea at least once in their lives. Entrepreneurs are people who will attempt to make their business ideas come true by making the business. To do so, entrepreneurs often find themselves looking for ways to fund their business idea. Learn more: http://paulsaunders.org/
Having a business idea is the easiest part of starting the business. You need to find a problem or two that needs a solution, develop and sell the solution to the market, and earn money afterward. Often, the hardest part is having the funds to develop the product. Paul Saunders, the chief executive officer of the James River Capital Corp., offers tips on how to start and fund a startup.
Bootstrapping is a funding system in which the entrepreneur gets the initial funding from his or her own personal savings, credit cards, or even borrowing from family and friends. Paul Saunders recommended to be patient and spend more time in building savings. Investors are likely to become more attractive if the entrepreneur already contributed his share in the venture.
Crowdfunding is a relatively new way to gather funds for a new product and is actually very popular in the tech industry. In crowdfunding, the entrepreneur will present the idea to the masses for its development. After the development and delivery of the product, those who gave their support will be given an incentive.
- Business Loans
Banks are traditionally where budding entrepreneurs get their initial findings with bank loans. In order to get approved, you should have a great credit score. You will pay for an interest in the fund that you use. For entrepreneurs who want to start a small business, a Small Business Administration or an SBA loan is preferable.
- Local Loans
Local loans are loans that are given by local investors and business centers. Business development centers are usually found inside universities. The entrepreneur will meet investors who will help him or her get local loans if the business idea is profitable.
- Angel Investors
An Angel Investor is someone who is a member of the Angel Capital Association. Usually, these investors will invest their spare money to the ideas which they find promising. Angel investors can give $10,000 or more in investments. These investors can also help entrepreneurs find the right investors for their ideas.
- Venture Capitalists
Venture capitalists are companies or individuals who invest money from their own clients to invest in high-return companies. These investors are aiming to get 3-10 times of their investments within 5-7 years.
- Trading Equity
And last but not least is to make a public company by doing an initial public offering. This will not let you incur debt, but you will not own the company 100%.
Paul Saunders is leading the James River Capital Corp., an investment firm that is currently based in Richmond, Virginia. It was founded in 1995 by Paul Saunders and Kevin Brandt. The company focuses on corporate credit, equity strategies, asset-backed securities, and more.
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