Home Advertise Contact Blog Advertiser Login RSS
Newsletter Signup

Your Free Business Opportunity Resource Is Easy To Use
Home-Based Businesses
Choosing a Business Opportunity Growth and Profit Marketing and Sales
Plans and Goals Running Your Own Business Start-Up
Working From Home Entrepreneur Exchange Feature Articles
Opportunity Community Opportunity Focus In The News

Sales Success Inspiration - Hello my friends and welcome to another installment of The Special Sauce Series on Sales.

Sales Success Inspiration is the name of the game today.  We left off with the last post "

No Sales! The Leads Suck! After ten years in the industry I have heard this more than once. In fact, I hear this so often that a series of educational blog posts are needed to educate sellers on how to close more deals - period.

No sales! Now, first I preface this entire post with one thought...

She Means Business: Turn Your Ideas into Reality and Become a Wildly Successful Entrepreneur Is our Book-of-the-Month.

Carrie Green began her entrepreneurial life at the tender age of 20, starting a company that would go global in just a few years. She has turned her experience...

Sponsors

STARSCAPES®
Imagine making up to $500 to $1,800 a day! Call or click now see how you can get your business for FREE! (602) 679-0257
FundAbility
Need Funding? Need To Offer Financing To Close More Deals? We Have Access 7,000+ Credit Providers. Learn more now...
How Many Leads Does It Take To Close A Sale?
This Article is now live on our blog and I know could be very insightful for many. Read On
Top 7 Reasons to Consider a CMS
The internet loves obscure abbreviations. You can skip over most of them, but not CMS. What is CMS? read on...
Productivity Hacks — Our Top 50
Productivity Hacks will help you make more from less this 2016. Here at BusinessOpportunity.com we want to... Read On
The Ideal Length of Everything Online, Including Social Media Posts
When one of your busiest marketing channels limits you to 140 characters, you know that the internet sets its own rules.
How Many Leads Does It Take To Close A Sale?
This Featured Article is live on our blog and I know could be very insightful for connectivity and ROI.
It Takes a Hot Voicemail to Land a Warm Lead
If you're a successful entrepreneur who provides others like you the chance to follow in your footsteps... Read On
Business Franchise Opportunities Funding
The principle reason entrepreneurs put off starting their own business is lack of funding... Read On
Top 50 Home-Based Business Ideas
Home-Based Business ownership can be the most rewarding endeavor you will ever undertake. The new year... Read On
Low Cost Business Opportunities to Own
Are your right for a Low Cost Business Opportunities to Own? The desire to own your own business... Read On
The Top 10 Reasons to Buy a Business Opportunity or Franchise
Starting your own small business is part of the American Dream, right up there with owning your own home. Read On
Why Advertise Your Business Opportunity?
Over the years we have been fortunate enough to receive quite a few testimonials. In fact, ... read on
7 Keys to Leading Highly Effective Sales Conversations
Most people's sales conversations could be better. Not a little better, significantly better. Read On
 
Resource Center > Article
Funding Your New Business Start-Up with Your 401K
6 Sep 11 Posted by: Kathleen C Lanza
in Start-Up
Share this Article:

Small business lending has been on the decline since its peak in 2008, according to the U.S. Small Business Administration’s Office of Advocacy as recently cited on CNNMoney.com.  As a result, countless ambitious entrepreneurs who are tired of working for someone else and who are interested in buying a business opportunity or franchise of their own are asking themselves where they can go to get the necessary start-up capital.

What many of them may not realize is that, thanks to fairly longstanding provisions in the tax code, they may be able to get the money they need by tapping into their 401K, and it’s entirely possible to do it without paying taxes or incurring penalties for early withdrawal.  However, the risk involved in going this route to finance an up-start business is considerable, so it’s important to do your homework and explore all of your options before you proceed.

Two Options for Tapping Your 401K

There are two primary ways you can access the funds in your 401K to start a new business.  The first is fairly traditional and relatively straightforward in that it is not much different than any other 401K loan.  It involves taking your 401K savings from your old company and establishing a new 401K plan in the new business’ name, whereupon you can take a traditional 401K loan from the new firm’s plan, but only with some significant restrictions.  In addition, if you don’t have the steady income necessary to repay the loan, it can all too easily go into default, which means taxes and early withdrawal penalties may then apply after all, depending on your age.

Your second option is a ROBS loan, which stands for what the IRS calls “Rollovers as Business Start-ups.”  A ROBS loan is far more complicated to pull off and often requires specialized assistance in getting all the i’s dotted and t’s crossed.  However, the payoff can be much greater, as ROBS loans allow you to access more money without incurring fees.  When it comes to getting a ROBS loan, business valuation is a critical component of whether or not it will be approved.  As a result, it may be easier to obtain a loan of this kind to purchase an existing business opportunity or franchise based on a proven business model than it would be an entirely new start-up.

While it’s true that funding a new business venture with your 401K assets can be a risky endeavor, many would argue that when you borrow money from any source, you’re taking a significant risk.  After all, most standard loans require you to put up valuable collateral, impose substantial interest rates and obligate you to oftentimes painful terms, including having to make payments before you've even made profits. 

Of course, financing a business with 401K money isn’t for everyone.  It’s a serious gamble, one that can certainly break your future.  To be fair, it’s also one that a number of now successful entrepreneurs have found has made theirs.  The fact is that no one else will ever believe in you as much as you do.  Once you know what’s at stake and what the possible trade-offs might be and you’ve honestly assessed yourself and the likelihood that you’ll be successful, the question boils down to this:  Are you worth the risk?

Related Blog Posts
8 Jun 16 Posted by: Kevin James Culp
in Start-Up

Commercial Property 101: Leasing commercial space can be hugely beneficial for your business and a great way to cut down your overheads.

However, there are lots of things you need to consider before leasing a commercial property to ensure that you’re making the right decision for your business....
19 Apr 16 Posted by: Todd Hatch
in Start-Up

StartUp Marketing - There is a wave of sheer exhilaration that comes with finishing your product or getting your startup to the starting line. But according to many entrepreneurs, that’s when the real work begins. People need to know what you have to offer before you can make money.

StartUp Marketing...
28 Mar 16 Posted by: Kevin James Culp
in Start-Up

StartUp Financing: Are you having trouble getting people to buy your expensive products or services? Whether you are offering a business opportunity or a franchise, you are not alone.

StartUp Financing: Even after your target audience is sold on the worth...
29 Dec 15 Posted by: Kevin James Culp
in Start-Up
Funding is the lifeblood of any business. The principle reason entrepreneurs put off starting their own business is lack of it. Raising funds from venture capitalists, friends and family is fraught with danger and is often very time consuming. Funding your business by mortgaging your home is risky too....
14 Dec 15 Posted by: Kevin James Culp
in Start-Up
Who are the types of people who buy a business opportunity or small franchise According to people in the field, this type of career move appeals to a wide range of personalities. If you’re worried that you don’t have what it takes, relax....
 
   

SocialXpand Business Opportunity Interview w/ Brian Weiss was for me a new way to learn from a customer and whom I consider a friend in the industry.

I've had the opportunity to work for a while now with Brian Weiss who is the Director of Sales for the
Video Spotlight
You're invited to view a Bartercard Online Franchise Presentation.

Premium Sponsor