What prevents most brilliant ideas from becoming a reality? For the most part, it is a lack of funding. Far too many entrepreneurs see their dreams and ideas die on the line because they don’t have the finances necessary to produce or market them.
Paul Saunders, the founder, and CEO of the James River Capital Corp. is a graduate of the University of Virginia and the University of Chicago. His career has spanned years and has included roles in investment banking and investment trading. James River Capital originally was the alternate investment department of Kidder, Peabody,& CO. It became an independent investment company in 1995 when it was purchased by Paul Saunders and Kevin Brandt. Paul Saunders has always had a passion for finance. This led to a career in investment banking and makes him a voice of reason and experience worth listening too. Learn more: http://jrccblog.net/
In an article recently published in the Premier Gazette, Saunders shared some much-needed advice with those who have brilliant ideas but no finances. The funding strategies shared in the article are designed to help entrepreneurs launch businesses and bring ideas to life.
The emphasis of the tips shared by Saunders in the article is for the creation and not competition. His list has seven tips. Here are the top three.
Bootstrapping refers to personal funding; money/funds that a person has on hand. This includes personal savings, credit cards, and borrowing from family and friends. Even though bootstrapping may not be a way to fund your complete business startup goals, it is the best place to start because you won’t have to give up equity or control to a second or third party.
Bootstrapping says to possible contributors that you believe in yourself. Using your own resources proves that because you have invested financially in the business you are more likely to work hard to ensure that it succeeds.
Crowdfunding is a relatively new form of business funding that relies on contributions of various amounts from a large group of people. Kickstarter is a crowdfunding platform that allows supporters of your idea or project to pledge to the goals and tiers you set. Those who support you through crowdfunding are not looking to be repaid. This platform works best if you have a social media following or if your product or service addresses a high-demand gap.
Bank loans and loans from the Small Business Administration (SBA) are two of the more common types of bank loans. Both require that you have a strong credit score. The interest rates on bank loans are lower, but the loan has a lengthy approval process. The interest rate on an SBA loan is usually more expensive but they are easier to qualify for.