For the budding entrepreneur, they understand what the feeling of inspiration is like. This is the brilliant idea that they feel they can turn into a successful business. Unfortunately, for many who have felt this inspiration before, the next question is about how they are ever going to be able to fund their business idea. After all, it takes a lot of working capital to take a business to successful heights. Unfortunately, it can be a challenge to raise this money.
This is where the CEO of James River Capital Corporation can share some helpful advice. James River Capital is one of the most successful companies in the world. The firm is registered as a trading advisor with the SEC and focuses on a variety of asset classes including equity strategies and corporate credit, which can be important for companies looking to get off the ground. The company was founded by Paul Saunders, who earned an MBA from the University of Chicago.
One of the helpful tips that Paul Saunders shares is called Bootstrapping. This is the term used to refer to running a business through equity lines such as personal savings, credit cards, and family members who are willing to provide a helping hand. For the new entrepreneur, this is the right location to start. Yes, it might be difficult to fund an entire business through this method; however, it can cover some of the startup costs that are needed to get the business off of the ground. Furthermore, spending more time to build up a personal savings account can be helpful. That way, people don’t have to surrender equity to somebody else.
Finally, if someone is looking for new investors, they are more likely to contribute their capital if they see that the founder is contributing his or her own money as well. This lends confidence, credibility, and belief to the business.