Buying a Business with IRA Funds is Easy With a BORSA Plan

There are several ways to open a small business whether it’s a start-up, franchise or an existing business. In some ways, purchasing an existing business is easier than starting from scratch because someone else has already done most of the dirty work. With an existing business there is no need to hire employees, negotiate a lease or establish a customer base. As buying a business is serious business (no pun intended), there are several things to take into consideration before taking the plunge.

First things first, you need money to buy a small business, but before taking out a loan with the nearest bank, consider a non-traditional yet viable alternative such as buying a business with IRA funds. The DRDA P.C. firm specializes in a program that allows prospective business owners to utilize the funds accrued in an IRA or 401k account. The BORSA (Business Owners Retirement Savings Account) plan can be used in several ways such as purchasing an existing business, as start-up capital or for the equity injection required for an SBA loan. Everyone knows that early withdrawal from a retirement account means having to pay hefty fees and taxes, but with the BORSA plan, you can take out the money you need without getting hit with penalties and distributions.

After securing the proper funding, you should then starting thinking about what kind of business you want to buy with your IRA funds. It’s usually a mistake to purchase a business that you know little or nothing about. If you have a special skill or hobby, you may want to use that as a jumping off point. Find an industry in which you are familiar so that you won’t have to work extra hard to play catch up while trying to keep the business afloat.

After you figure out the industry that would best suit you, it’s time to start the search for businesses for sale. There are many avenues to explore such as real estate listings, online listings, trade associations or even old-fashioned networking. Open your ears to friends or associates for leads on businesses that are on the market. Talk to current small business owners and see if they are looking to sell. Don’t fully rely on business brokers to locate a business opportunity as they only make commission when they make a sale. For sound advice on the quality of a business you are thinking about purchasing or to gauge the fairness of it’s selling price turn to a business professional or an online business blog.

Once you have found the perfect business and are ready to sign the paperwork, there is one more important step to take. Do some detective work and find out as much as you can about the business such as its financial history and any other pertinent information. Ask the current owner to let you review copies of cash flow statements, accounts payable, employee files and balance sheets that may alert you to potential problems. Once you feel secure in your purchase you can go on to close the deal and open up shop.

Your dream of buying a business with IRA funds can become a reality by calling the specialists at DRDA P.C. today at 281-954-6040 or visit www.drdacpa.com. Let them show you how the BORSA plan can get you up and running in no time!