Many entrepreneurs know all too well how important it is to raise sufficient capital to get their business of the ground. The best idea is worthless unless you have the funding to get it started. Experienced entrepreneurs even suggest that you raise more money than you think you need as the unexpected will happen and everything will take longer than expected.
However, how much money you need to raise greatly depends on what kind of business you are starting. If your goal is to start a small business, you may be able to use your own funds to get started. If your own funds are not sufficient, ask family and friends to chip in with a “friends & family loan.” Some banks may even be willing to loan you the money you need to get started if you have sufficient credit and or cash-flow.
But most entrepreneurs start their journey to build a big business and often that goes way beyond the financial capabilities of the founders and their close circle of friends. Unfortunately, this often means that capital is harder to come by, even if you have a strong business idea. Banks loan money against collateral or strong cash-flow and usually do not fund startups.
This does not mean that you are out of options though. There are a few alternative models to raise the funds you need including working with established investment companies like James River Capital. Paul Sanders, one of the top executives at James River Capital, has years of experience helping entrepreneurs raise the funds they need to grow their businesses.
Contact your local business development center
A great resource is your local business development center. Cities and local governments often have a vested interest of helping young companies of the ground. They often can assist with finding investors or in some cases even guide you toward available government grants.
Work with angel investors
Angel investors are often willing to take the risk to invest in a great idea, even if the company has no traction yet. Finding potential angel investors is not hard, convincing them is. Take a look at the Angel Capital Association and search for an angel group near you.
Often venture capital is called the holy grail of startup funding as you may be able to raise vast amounts of money to really catapult your business to the next level. Companies like James River Capital engage with entrepreneurs and guide them through the often complex and confusing process of raising venture capital.
If you have a great idea and are looking to raise substantial funds to get your business of the ground contact James River Capital and discuss your ideas with one of their experienced executives.