The big question that startups stress about is not whether they will have enough ideas to generate a business plan nor how they will reel in the customers they are telling the story to, but how will they find the money to make their startup work. Paul Sanders has been there and done that so he has lots of tips to give to startups who are stressing how to bring money to their startup. Below are several ways to build your startup of different monetary sources according to Paul Sanders.
Bootstrapping a startup is a method of which is self-initiated; it is coming up with all the ideas you can use that doesn’t require the input of others investment. Bootstrapping goes a little further because it has more resources to choose from as far as family and friends, credit cards and maybe an IOU note to some Uncles and Aunts who trust in your talent. Bootstrapping allows you to put in as much private capital as you have into your own company.
Keep the Profits
Bootstrapping allows you to keep 100% of your business without having to relinquish any control of your profit or earnings or the growing worth of your company as you build it. On the other hand, you have no one to fall back on for assistance is your own devices and knowledge. You can from time to time reach out to business associates or business mentors and small business associations, but no ties to angel investors or the like. It is pretty much a Johnny Appleseed plan for business. Now the drawback is not every kind of business can successfully begin on a bootstrapping effort and they require other methods of funding.
James River Capital
James River Capital is a business belonging to Paul Sander and Kevin Brandt, who acquired the investment company from Kidder. James River Capital was originally started in 1986 but entered private investments in 1995; it is registered with the SEC as a commodity trading advisor.