New Business Owners Are Wise to Explore Different Funding Options

When your business plan is crafted to perfection and you can see that your dream of owning your own business is truly taking shape, it’s time to face the all-important question:  Where do you get the capital for starting your new business?  There are many options for obtaining small business capital, and your goal should be to choose the method that is least expensive in the long run, yet provide that dollars that you need to get started off right.  The BORSA Plan offered by DRDA Certified Public Accounting firm in Houston, is a unique and legal way to obtain funding to operate and function on a daily basis.

An educated business owner knows, however, that it’s necessary to learn about other options of small business funding, so here are a few:

• Venture capitalists manage the pooled money of others in a professionally-managed fund. The funding may be in the form of a trust, business, limited liability company, or investment fund, and typically reflects the investment judgment and expertise of an individual who represents the actual entity that provides the money.  Most traditional venture capital funds, however, are usually not able to consider business investments under one or two million dollars, which makes this option prohibitive for start up businesses who need only enough money for their initial payroll fund, equipment, or a small piece of real estate.

• Outside of the few thousand dollars that a new business owner may be able to borrow from friends or family, angel capital is a common consideration for financing for start-ups, and accounts in total for almost as much money invested annually as all venture capital funds combined.  An angel investor is an affluent individual who invests his or her own funds to provide money for a business start-up, usually in exchange for ownership equity or a convertible debt. Some angel investors organize themselves into angel groups or networks to share research and pool their investment capital.  Angel investments require a very high return on investment, and thus bear extremely high risk, unfortunately, because a large percentage of angel investments are lost completely when companies in their stages fail. For this reason, experienced angel investors are most interested in opportunities that have the potential to return at least 10 or more times their original investment within 5 years.
  

The BORSA™ (Business Owner’s Retirement Savings Account) Plan is alternative financing for your start-up business. One of the best parts of working with a BORSA Plan is that you are familiar with and already trust the person who owns the money:  YOU!  The money that you earned through your 401(k), 401(a), 403(b), 457, or IRA rollover while you’ve worked in Corporate America is available for your withdrawal now, through the BORSA Plan, well before you reach retirement age.  In order to be eligible for this option, you must have terminated employment with the provider of the aforementioned plan(s).  Usually, employers make rollovers available within 30 days after you terminate your position, so if you are still employed, you should ask you human resources or benefits department now about their distribution policy.

To learn more about  the BORSA funding source that operates without distributions, taxes, penalties, or the use of loans, contact Suzy Granger at 281-954-6040 or visit www.borsaplan.com today!