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
Older Entrepreneurs Use Creative Financing to Make the Most of Today’s Business Opportunities
16 Oct 13 Posted by: Kathleen C Lanza
in Featured Articles
Share this Article:

According to the latest Kauffman Foundation report on entrepreneurial activity, the percentage of new entrepreneurs between the ages of 55 and 64 has grown from 14.3 percent in 1996 to 23.4 percent last year, and entrepreneurship among 45-to-54-year-olds is also on the rise. In fact, according to the Bureau of Labor Statistics, those 65 and older have the highest rate of self-employment today.

Kauffman IndexA

Perhaps this is not surprising given that so many of us are living longer and healthier lives than ever before. That coupled with the fact that recent economic challenges have made it nearly impossible for many older people to retire altogether is what is driving this relatively new yet steady trend. Plus, let’s not forget all the newest technologies that now make it easier for anybody to own and operate their own business opportunity, distributorship, licensee opportunity, small franchise or other small business, oftentimes from the comfort of a work-at-home office and with little to no overhead.

For many so-called baby boomers born between 1946 and 1964, having the opportunity to start a small business represents a kind of freedom and independence that they’ve never had before and that they now welcome. For others, it’s become a matter of necessity. Either way, for far too many older people who are on a fixed or dwindling income even relatively reasonable startup costs can make business ownership seem out of reach.

But the picture may not be as dreary as it seems.

For older individuals who want to be business owners and have retirement savings, but who do not have cash in hand, there is an option you may not have heard about.

It’s called a ROBS. ROBS stands for ROllover Business Start-up, and while it does involve tapping into your retirement funds, the rules are a little different when you’re using the money to start a business or buy one. In fact, the ROBS option does not subject you to the same restrictions as would be the case with a self-directed IRA.

Here’s the much simplified version of how it goes…

If you have a 401(k) or IRA funds, the IRS will allow you to roll money over into a new 401(k) for the purpose of business startup or purchase, and it is then used to buy qualifying employer securities in a newly created C Corporation. As the fund’s owner, you are then allowed to be actively involved in the business, to draw a salary, guarantee a business loan and provide jobs for family members working under the auspices of a “family-owned” business.

Yesitshould

Now, one of the upsides to the ROBS approach is that you can use the full amount of the 401(k) money for the business without paying taxes on it at the time and without paying a withdrawal penalty. However, there is a downside. Given that you must be set up as a C Corporation, you may be subject to higher taxes than you would as either an S Corporation or an LLC.

Of course, there are other options other than the ROBS. A safer bet is to simply take a loan from your existing 401(k), which can be as much as half of its value or up to $50,000, whichever is less. However, it will have to be repaid within five years in quarterly payments. In essence, you give yourself a loan, but you’re told when and how you must pay it back.

Or, you can also elect to take a large disbursement out of your account, but only if you’re willing and able to pay the taxes on that money, as well as the 10 percent penalty. And that’s something few people over the age of 55 or so can afford or want to do these days.

While it’s true that buying a business opportunity or starting any small business is a risky venture, the payoff in terms of self-fulfillment alone can make it all worthwhile. If you’re older and do have retirement savings that you’d consider tapping into to get a business going, the key is to find a skilled financial advisor who can educate you on what your options are and then guide you through the process.

Thankfully, for those who are determined to be entrepreneurs and who have the passion and skill set to take a gamble on themselves, no matter what their age, there are creative funding options out there. Just knowing what they are so that you can ask all the right questions is half the battle.

Related Blog Posts
15 Mar 17 Posted by: Kevin James Culp
in Featured Articles

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 "
10 Mar 17 Posted by: Kevin James Culp
in Featured Articles

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...
1 Mar 17 Posted by: Kevin James Culp
in Featured Articles

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...
16 Feb 17 Posted by: Anuj Mishra
in Featured Articles

Improve Customer Engagement - The days of endless customer tickets are finally over, all thanks to the advancements in technology and innovations from clever software developers.

Improve Customer Engagement - Instead of being constantly overwhelmed by countless...

22 Nov 16 Posted by: Kevin James Culp
in Featured Articles

Free Lead Generation is a hot topic these days since many pay a pretty penny per portal to generate leads to increase ROI.

Free Lead Generation is part of any markets platform.  It is important to note that this November was 'nutty' for lack of a better word.  The purpose of this blog post...
 
   

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