People who are considering starting a new business venture face a variety of hurdles along the way. Perhaps the toughest is finding adequate startup capital. There are a few different ways to obtain the funding necessary to start a business venture, but each individual’s circumstances are different, so not all the available solutions will work for everyone.
Raising Startup Capital
People who are considering starting a small business may be able to obtain a funding on their own, however, a larger venture may require the assistance of investors. The best place to start is with friends and family. In many cases, you can get a large majority of the startup capital necessary by taking this approach.
Another option is a local loan. Some suggestions would be your local Chamber of Commerce or seek assistance from the local business development center. They may have information that can prove useful, such as names of potential businesses and investors who may be interested in your idea.
Angel investors are another popular option and are plentiful because smart investors and related companies want to become involved before a company is listed for public trade. There are plenty of available resources on the internet and in the local community to help discover many different angel investors. Crowdfunding is also incredibly popular today. Platforms such as Kickstarter are responsible for helping countless entrepreneurs raise the money they need to get started with their business.
This option is best suited for larger projects that require more than $1 million or more in startup capital. Although this route may require a significant amount of research and negotiation, it can more than pay off in the long run. Generally, this type of investor is interested in making many times more the initial investment within five to seven years.
One of the best methods for obtaining funds for new entrepreneurs is venture capital funding from reputable companies like James River Capital. James River Capital was founded in 1986 under a different name, KP Futures Management Corp. It was later renamed James River Capital Corp. in 1995 when it was purchased by two of the senior officers of the company; Kevin Brandt and Paul Saunders. Since then, the company has grown significantly and has developed into one of the most respected names in investment.
There are many ways to obtain funding for entrepreneurs who have great ideas for new and exciting business. Decide what size business you want to create and then proactively seek out funding from all available sources to get started on the project.