Joel Libava
Most folks I meet with to try to help learn about interesting opportunities in franchise ownership get stuck on the “financing” part of the equation…..
Here are the traditional ways to fund your new business startup {franchise or non-franchise}$$$$
1. Small Business Administration Loan.{SBA}
2. Commercial Bank Loan
3. Commercial Line of Credit
4. Home Equity Loan or Line of Credit
5.Personal Loan from Family/Friends
Those are some ways to obtain financing for your new business. Here is another:
AUDEO: The Entrepreneur Pension
Should I stop here? Ok…
What if there was a way to use a portion of your 401{k}or IRA to help you fund your new business? Basically, you are borrowing against yourself, and if structured right there is no tax penalty to deal with.
Guidant Financial is a company that specializes in setting up entrepreneurial enterprises with retirement funds. The steps:
1. They will form a corporation for you.
2. Then, the corporation {yours} sponsors a 401{k}plan.
3. They help you roll over some of your retirement funds to your corporation’s plan
4. 401{k}invests in your corporation
The above is a simple and to the point version of what transpires. A couple of the folks I have helped get into businesses of their own have used a portion of their retirement funds to start businesses, and have used Guidant’s superb services to do it, right.
This option may or may not be for you, but it is an option. You should look at options. Right?
