Entrepreneurs need many skills to be successful, including ingenuity, creativity, persistence, and strategic thinking.
Never are these skills more necessary than when it comes to funding their startup dreams.
One of the most creative of business funding solutions is the use of retirement money and is an attractive option for many entrepreneurs. Commonly referred to as a Rollover as Business Start-Ups (ROBS) funding strategy, this solution has many advantages over more traditional financing options. As with all financing opportunities, you need to weigh the advantages and risks.
Let’s take a look at the pros and cons of ROBS funding.
A ROBS funding strategy is a flexible option that is designed to provide entrepreneurs with readily accessible financing to purchase, start up or grow a business. Using the ROBS small business funding strategy requires some specific steps:
While the steps are relatively simple, the process requires using a steady, informed partner to ensure that the right paperwork, documentation, and processes are followed correctly. Therefore, it is important to use a trusted adviser like Benetrends, which pioneered the use of ROBS models for business financing three decades ago, to ensure compliance with IRS/DOL regulations.
Advantages to Using ROBS
There are many benefits to choosing to use existing retirement funds to fuel your entrepreneurial vision. Here is a look at a few of those advantages.
You believe in your vision for your business and want to get it off the ground right. If you have money in a retirement account, this is an ideal time to turn to ROBS small business funding for a successful launch.
Disadvantages to Using ROBS
As with any small business funding option, there are downsides. Here are a few of the disadvantages of using ROBS for your startup needs.
Finding the Right Business Partner
If you are going to use the ROBS business funding strategy, it is important to find the right partner that can provide you the guidance, insights, and experience to make the process go smoothly.
Benetrends is the pioneer in providing 401(k) rollover funding for small business owners. We provide worry-free funding and guidance through every step in the process.
In addition, Benetrends provides ongoing support for your growing business, letting you focus on the most critical work. Benetrends has partnered with business service providers that ease some of the operational burdens of running a new business, insurance, legal services, and credit card processing.
Let Benetrends help you weigh the pros and cons of the ROBS business financing strategy in your particular case. To learn more about why Benetrends is the right choice for entrepreneurs looking to start a business, download Innovative Funding Strategies For Entrepreneurs.
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