{"id":8766,"date":"2021-04-07T11:01:02","date_gmt":"2021-04-07T17:01:02","guid":{"rendered":"https:\/\/www.shieldagency.com\/blog\/?p=8766"},"modified":"2025-01-23T17:20:51","modified_gmt":"2025-01-23T23:20:51","slug":"how-to-fund-your-start-up-business-idea","status":"publish","type":"post","link":"https:\/\/www.shieldagency.com\/blog\/how-to-fund-your-start-up-business-idea\/","title":{"rendered":"How To Fund Your Start-Up Business Idea"},"content":{"rendered":"\n

Shield Insurance Blog<\/a> | Fund |<\/p>\n\n\n\n

How To Fund Your Start-Up Business Idea<\/h2>\n\n\n\n

<\/a>Lilach Bullock<\/a> Contributor Small Business <\/a>I write about digital marketing topics, from content to social.<\/p>\n\n\n\n

You\u2019ve got the idea, the drive, the know-how: how about the capital? Funding is an essential part of any business, as without the seed money you\u2019ll be unable to fire the starting gun on your, er, start-up.<\/p>\n\n\n\n

Entrepreneurs are an incredibly clever and industrious bunch, but many are in the dark about how best to fund their start-up business<\/a>, preferring instead to focus their energies on a core offering. One supposes that reviewing funding options can seem like a dull, laborious task when you are devoting time and attention to your genius idea. In any case, great ideas can only fulfill their potential if they are backed by stable investment.<\/p>\n\n\n\n

Read on to find out the best ways of obtaining financial backing for your start-up business idea.<\/p>\n\n\n\n

1. Pursue a grant<\/h3>\n\n\n\n

The less monied cousin of a bank loan is a grant. While you shouldn\u2019t expect to be cut a massive check, there are dozens of grants available, offered by national and state governments (as well as private enterprises) in the interests of stimulating the economy and growing the jobs market so it\u2019s worth checking out your options for funding your startup<\/a>.<\/p>\n\n\n\n

These financial injections can help you save money on-premises and fixed rates, purchase cheaper IT or manufacturing equipment, and fund staff training. The main drawback, of course, is the fierce competitiveness of such grants, as well as the box-ticking involved: it can be a frustratingly drawn-out process, but that\u2019s the tradeoff for retaining equity. In the US, start-up grants are offered by organizations such as Small Business Innovation Research (SBIR), the National Association for the Self-Employed (NASE), and Idea Cafe.<\/p>\n\n\n\n

2. Crowdfund<\/h3>\n\n\n\n

Crowdfunding is a favorite of the digital economy, and probably the quickest way of obtaining finance for a new business. You don\u2019t even have to be massively tech-savvy to launch a crowdfunding campaign, but what you do need is a compelling pitch, one which strongly references your start-up\u2019s potential for growth, as well as a knack for interacting with your cash-rich community. If all goes to plan, you\u2019ll have capital you don\u2019t need to pay back, without ceding any operational control. As a side benefit, crowdfunding is a nifty form of advertising, a way of stimulating public interest in your company before it\u2019s even made its debut. The difficulty, needless to say, is in getting your voice heard in the vast crowdfunding landscape.<\/p>\n\n\n\n

3. Family and friends<\/h3>\n\n\n\n

The idea of hitting friends and family for cash doesn\u2019t sit well with some entrepreneurs, but many of the world\u2019s top magnates readily admit to borrowing from their social network early in their careers. As such, you should have no compunction about doing the same. Soliciting short- or long-term loans from friends and family might lead to some domestic squabbles down the road, but you won\u2019t usually have to pay them back with interest added. Indeed, you might not have to pay loans back at all, depending on the generosity of your creditor. On the other hand, it\u2019s not easy to put together a hefty bankroll relying solely on family and friends; and you have to ask yourself whether you really want to risk straining meaningful relationships.<\/p>\n\n\n\n

4. Get an angel investor on board<\/h3>\n\n\n\n

Don\u2019t pray to the angels; seek angel investors. Targeting high net-worth individuals who have a track record of supporting start-ups isn\u2019t difficult to do, but the challenge lies in convincing them you\u2019re worthy of their investment. There are many online angel investment networks, as well as local investor groups you can pitch to in person, so do your research and start submitting your pitches. Find the right angel investor and not only will you benefit from their financial support but also their wisdom: oftentimes, they offer mentorship as a side dish alongside their capital. On the other hand, they generally offer less financial backing than banks and venture capital funds.<\/p>\n\n\n\n

5. Raise money yourself<\/h3>\n\n\n\n

Click here for the rest of the story<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Shield Insurance Blog | Fund | How To Fund Your Start-Up Business Idea Lilach Bullock Contributor Small Business I write about digital marketing topics, from content to social. You\u2019ve got the idea, the drive, the know-how: how about the capital? Funding is an essential part of any business, as without the seed money you\u2019ll be […]<\/p>\n","protected":false},"author":2,"featured_media":14732,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,1,2,345],"tags":[514,15,511,512,509,515,513,294,510],"class_list":["post-8766","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-blog","category-insurance","category-shield-blog","category-umbrella-insurance","tag-american-funds-login","tag-business","tag-business-loan","tag-crowd-funding","tag-funding","tag-index-funds","tag-mutual-funds","tag-small-business","tag-start-up-business"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.shieldagency.com\/blog\/wp-json\/wp\/v2\/posts\/8766","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.shieldagency.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.shieldagency.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.shieldagency.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.shieldagency.com\/blog\/wp-json\/wp\/v2\/comments?post=8766"}],"version-history":[{"count":4,"href":"https:\/\/www.shieldagency.com\/blog\/wp-json\/wp\/v2\/posts\/8766\/revisions"}],"predecessor-version":[{"id":14733,"href":"https:\/\/www.shieldagency.com\/blog\/wp-json\/wp\/v2\/posts\/8766\/revisions\/14733"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.shieldagency.com\/blog\/wp-json\/wp\/v2\/media\/14732"}],"wp:attachment":[{"href":"https:\/\/www.shieldagency.com\/blog\/wp-json\/wp\/v2\/media?parent=8766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.shieldagency.com\/blog\/wp-json\/wp\/v2\/categories?post=8766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.shieldagency.com\/blog\/wp-json\/wp\/v2\/tags?post=8766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}