James River Capital and Paul Saunders: Sound Ways to Fund Your Business
Businesses face hard times especially when on their early stages. The major problem entrepreneurs face today is raising funds for their businesses. It is not easy for an investor to throw in funds to get you started with your business idea. Paul Saunders, James River Capital Corp. Founder, and CEO have extensive experience in starting up businesses and helping them to grow. This article focuses on his thoughts on how entrepreneurs can finance their businesses.
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Who is Paul Saunders? He is an accomplished businessman and entrepreneur in the finance sector. He holds a B.A. from the University of Virginia along with an M.B.A. from the University of Chicago. Saunders has held many prestigious leadership roles at different firms including KP Futures Management Corp and Kidder, Peabody, and Co. Away from his business endeavors, Paul Saunders is a staunch supporter of philanthropic activities. He launched the Sounders Family Foundation alongside his wife.
In 1995, James River Capital Corp. came into existence. The firm started off quickly to become an independent investment firm giving competitors a run for their money. The Virginia-based firm focuses on numerous asset classes such as corporate credit and equity strategies.
When it comes to means of funding a business, bootstrapping should be the first option to come in mind. It is the simplest method of getting financing but it may not fund your business entirely. Nevertheless, it demonstrates to investors that you have put in some leverage and you’re serious about it. If borrowing from your friends or relatives does not sound good for you, you can try crowdfunding. Crowdfunding is a rare way to mobilize for funds from a large group of people. For crowdfunding to be successful, you need to perform campaigns and give the people small incentives such as T-shirts.
Business loans is another way to go to get your business started and going. You can get loans from banks or Small Business Administration. You might get low-interest loans through banks, although you will go through a lengthy process. You can also opt for SBA loans which are easy to qualify for. If you’re not comfortable with interest rates associated with business loans, you can go for local loans. Paul Saunders would tell you to visit your Chamber of Commerce to get guidance on how to get local funding.
Angel investors find business ideas which are promising and fund them. They can part with up to $10,000 to support your business idea. Angel investors can also give you a networking chance with other investors. Closely related to angel investors are venture capitalists. Venture capitalists invest in promising business ideas with the hope of receiving 3-10 times their investments within a short period of time. You can also trade equity with funding.