Having it all and looking good doing it. That’s the dream, right? The one we’ve nurtured since we had Astronaut Barbie come home to Ken and ask “What’s for dinner, babe?” The big house, fast car, killer wardrobe … we want all the trappings of modern success. Throw in a couple of brilliant kids and an annual tropical vacation and you’ve got the American Dream. In recent years however, it may have seemed that dream was dead or dying. The news has been dominated by an economic downturn that has caused budget cuts and corporate layoffs as widespread as any in recent memory.
But, in the midst of so much bad news there’s a bright spot: America’s small businesses. And specifically, female-owned small businesses. In fact, reports show that women are starting businesses at twice the rate of their male peers.
In other words, more and more women are deciding to get serious and take their financial future into their own hands. And while choosing whether or not to leave “corporate America,” figuring out how to balance family and a new business, and ironing out the details of the new venture are all real challenges; perhaps the most pressing question is, “How will I pay for this?”
Whether it’s your dream to build a business from the ground-up or to purchase an established franchise, there are all kinds of financing options available ranging from SBA loans to equity lines to different forms of secured and unsecured loans — all worth checking out.
However, there’s another trend that is growing and opening doors for today’s entrepreneurs — rollovers as business startups, or ROBS. Simply put, ROBS allows you to invest your existing retirement funds into starting a small business or buying a franchise without incurring early withdrawal or tax penalties, all while protecting your personal credit. Essentially, it’s investing your money in yourself.
A great example is Bohnne Jones of Nashville, Tenn. Bohnne suffered four corporate layoffs during the economic downturn. While job loss can be devastating, Bohnne didn’t sit around feeling sorry for herself. Instead, she used her newfound freedom to seize the opportunity to invest in herself and follow her dream of starting her own interior design franchise, The Decorating Den. Today, Bohnne has a thriving company, an assistant of her own and big plans for future growth.
Sound risky? Every great success story began with some uncertainty. There’s always risk with any new business venture, but for women seeking the freedom of being their own boss and the potential financial independence that comes with that, finally turning that business dream into a reality can be incredibly fulfilling. The key is to examine all the options, weigh the pros and cons, and determine which path is right for you and your business. Consult outside legal and tax advisors, and seek out experts in business financing that can work with you to understand your goals and how best to structure the business to be successful. The good news is that whether choosing ROBS, traditional financing or even a combination of both, the American dream is alive and well. And women are leading the charge.
About The Author
As Vice President of Marketing for Guidant Financial, Heidi Keele helps people create the life they want through educating the marketplace about innovative alternative investing. Guidant Financial is the premier provider of rollovers for business start-ups (ROBS). Guidant’s services allow people from all walks of life the freedom to make time-sensitive investments using their existing retirement funds without taking a taxable distribution or getting a loan, in addition to offering traditional funding options such as SBA loans and unsecured credit. For more information visit Guidant online at guidantfinancial.com, twitter.com/guidant or facebook.com/guidantfinancial
