Aspiring entrepreneurs are often tasked with trying to find the necessary funding to start their business. Luckily, there are multiple funding options available for aspiring entrepreneurs. James River Capital Corporation Chief Executive Officer Paul Saunders has several tips for aspiring entrepreneurs seeking financing to start their business. Here is a look at some funding strategies that can help your business start off on the right track.
Crowdfunding involves a group of people donating money to show support for something. Those who donate do not expect to be paid back for contributing their support. If you choose to raise money through crowdfunding, you’ll have to develop a good marketing plan. Try to develop a strong social media following so that your followers can help raise awareness concerning your business.
There are several types of business loans available for entrepreneurs. Bank loans have low interest rates, however, you must go through a lengthy approval process. Small Business Administration loans are a little more expensive than bank loans, however the approval process is not as tough. Regardless of which loan you choose, you must have good credit in order to secure the best loan possible. If you have a poor credit score, inquire about equipment financing. You’ll receive financing to cover the costs that your business needs and then you can pay back the loan through fixed payments every month.
Bootstrapping involves you funding your business by using your own money or relying on your friends and family for assistance. Bootstrapping should help you cover most of your initial costs. By putting your own money into the business, you may attract investors because they’ll see that you have real stakes tied to the business. Your business will also gain credibility.
You may be able to trade stock in your business for investor capital. This allows you to gain income so that you can pay back your creditors without accumulating more debt. You’ll have to decide if you are comfortable giving up some ownership and control in your business. You can also offer a service in exchange for capital.
Inquire about local funding as well. Head to your local Chamber of Commerce and find out more information. Research your local business center, so that you can network with other entrepreneurs and investors.
About Paul Saunders
Paul Saunders is The Chief Executive Officer of James River Capital Corporation. Saunders has had a successful career in the investment banking industry. Saunders previously served as The Director of Managed Accounts and Commodity Funds at Kidder.
About James River Capital
James River Capital Corporation is an independent investment firm. James River Capital Corporation focuses on helping investors with topics such as equity strategies, global macroeconomics, and asset backed securities. Learn more: https://patch.com/virginia/richmond/paul-saunders-principal-james-river-capital-corp-burnout