It’s times like these that allow us to get a little creative when trying to achieve our goals. We’re going to look at a few unique options for funding a small business in a recovery. The BORSA Plan is the most unique and offers the best chance for success.
The traditional sources of small business funding are becoming harder and harder to obtain. Financial institutions have tightened their lending criteria, investors are skittish as they contemplate the direction of the economy, and hitting up friends and relatives can be difficult in these uncertain times.
Unique Ways for Small Business Funding in a Downturn
Government Grants
If you’re thinking about launching a business in the technology sector then a grant may be available for funding your small business. The Small Business Innovation Research (SBIR) program is available through the SBA. There are also state and regional government grant opportunities potentially available in your area.
The Benefits:
It’s free money from the government…who doesn’t like that.
There is no debt, no interest expense, and no loan repayment schedules.
A well-financed company with little debt on the books will be in a more favorable position to borrow money for future growth.
The Downside:
The spending of the grant money is strictly regulated.
There is a lot of competition for free money so it certainly isn’t a sure thing. It will take a lot of preparation with possibly little to no benefit.
Recommendation:
By all means, investigate whether a government grant is available for your business. Just refrain from making this your sole option for small business funding.
Equity Financing
There are plenty of angel investors looking for opportunities to buy into a quality business plan. Angel investors will assist in funding your small business in exchange for a percentage of the company. They have earned their nickname from the patient attitude they have in regards to the return on investment (ROI). They normally offer a wealth of business experience and will assist you in growing your business.
The Benefits:
There is no debt, no interest expense, and no loan repayment schedules.
A well-financed company with little debt on the books will be in a more favorable position to borrow money for future growth.
You may be able to “tap in” to a wealth of business knowledge.
The Downside:
You have to give up a piece of your business.
You have to answer to your investors.
It can take an overwhelming amount of time to look for an investor that is interested in your business idea and that you can work with efficiently.
Recommendation:
If you work well with others and can accept input from investors, this is a viable option. Be sure to scrutinize potential investors for compatibility.
The 401k BORSA Plan
A CPA firm based in Houston, Texas has discovered a unique way to use your 401k to obtain small business funding without going into debt. There is a provision in ERISA (Employee Retirement Income Security Act) that allows you to rollover your 401k into new business venture with no taxes or penalties. Basically, you’ll be investing your retirement plan in yourself and your new business.
The Benefits:
There is no debt, no interest expense, and no loan repayment schedules.
A well-financed company with little debt on the books will be in a more favorable position to borrow money for future growth.
You get to use your own money and run your business without outside intervention.
You have the opportunity to invest your retirement funds in yourself and manage its growth.
The Downside:
Recommendation:
This form of small business funding is pure genius. You get to use your own money from your 401k for funding a small business. There are no loan officers, angel investors, or government restrictions on how you spend your money. There are, however, compliance issues in regards to the IRS that a knowledgeable, qualified CPA is required to handle.
Pick up the phone right now and call 281-606-5719 !! It's your money, your dream, and if you believe you have a solid business idea and are willing to put your all into bringing it to life then you deserve access to your own money without tax or penalty! The BORSA Plan will do that for you. Call now at 281-606-5719 and ask for Suzy Granger. If it's after normal business hours then leave a message, or fill in the short form below. Either way, your inquiry will be returned immediately upon resumption of regular business hours. Get the money you've already earned and start your dream, now
