Small Business Financing and Franchise Financing Blog

next big franchise interviews David Nilssen

Thursday, May 6

A Diamond in the Rough

Tuesday, March 9
In Entrepreneur Magazine’s February issue, one article highlights the different options a small business owner has should a bank pull their credit line (see What to Do When the Bank Pulls Your Line of Credit).

One interesting tidbit (and we mean tidbit) is the suggestion of considering retirement funds as a source of capital should unexpected occur. While retirement funds have always been considered off-limits, we are finding that more and more industry professionals are suggesting retirement funds as a source of cash.

Reporter Julie Bennett interviews Guidant Financial Group Cofounder David NIlssen, who says that, while retirement funds should not be used as a last-ditch effort to save a failing business, the pros of using this funding method include no debt and no monthly payments.

Sounds good, right?

Pursuing another financing method can make a lot of sense if the bank route didn’t go so well in the first place. And, with banks seemingly lending less and less, and credit lines being pulled more regularly, perhaps retirement fund financing could become more and more mainstream.

Small Business Success Equals Retirement Relaxation

Tuesday, March 2
In a recent article on, reporter Eileen Zimmerman interviews a recently laid off corporate worker, Paul Cardosi, who used retirement account facilitator Guidant Financial Group to invest his corporate 401(k) into the purchase of a franchise (see Raiding the Retirement Fund to Keep the Business Afloat).
While the financing model itself is unique, so is the return Cardosi is already seeing on his initial investment.
Six months after making the initial investment, Cardosi’s business is up 200% from when it was sold by the previous owner.

“The 401(k) owns the majority of the business,” he told CNN. “I haven’t lost the money, I just invested it. When I sell, the money goes back into the 401(k).”

Now, how many of you can say your 401(k) just made a 200% return on investment?

We know that not many of us can.

Because the retirement funds are invested directly into the business itself, there is no expensive distribution and the retirement account stays intact – and, if your business goes well, it continues growing.

While the article itself leads off focusing on small business owners who took advantage of their retirement funds the old-fashioned – and expensive – way, it is interesting to hear that there are other ways to use the money already amassed in a retirement savings account for the benefit of a future business, and for the business owner’s future.

New Franchising Website Joins Forces with Funding Provider to Provide More Education to You

Tuesday, February 23

As any prospective business owner can tell you, discovery is in the first step in any process – and especially in finding the right franchise. The problem? There’s just not a lot of information out there. And the information that is there isn’t complete (or at least it doesn’t seem that way). Click here to check out the full story!

Come in: While there are several websites dedicated to helping you find the right franchise for you, all of them are plagued by the same problem that faces any online retailer: how does the buyer know what they are really getting?

This is the problem that CEO Mark Kieckenapp decided to solve with This new website uses video as a way to show prospective buyers what they are really being offered. And, so far the idea is taking hold. Many online retailers have started adding video of their clothing and other accessories walking down the runway as a part of the same effort to decrease hesitancy and increase sales.

What many clothing merchants don’t fact that does, though, is the financing dilemma. While a MasterCard will typically cover the cost of a new suit, it most likely won’t cover the fees associated with purchasing and starting a franchise.

Come in: Guidant Financial Group. “In partnering with we will be able to deliver educational content to their visitors and provide them with an understanding of how the different financing options available to them,” explains Guidant Cofounder David Nilssen.

With the economy in the midst of a jobless recovery, Nilssen believes that providing prospective entrepreneurs with the resources they need to realistically consider self-employment can lead to a resuscitation of American small business.

“While asset values have come back, consumer confidence is up, and the economy is turning a corner, both rising unemployment and a credit crisis continue to affect us,” explains Nilssen. “There are millions of Americans who could pursue self-employment but who don’t understand how to get started, or how they might finance a franchise.”

Kieckenapp explains that he chose Guidant Financial Group as the site’s exclusive financing partner because they are the leading provider of franchise financing services in the country. “While there are many companies that provide a service,” he says, “Guidant is one of the few that offers an array of franchise financing solutions through the industry’s most experienced team of consultants.”

Alternative Small Business Financing Options

Tuesday, February 16

If you’re looking to start your own business then you are likely aware that traditional sources of financing are difficult to obtain. Even if you’re like many of Guidant’s clients and have a stellar credit rating, you may not qualify under the tight credit policies of today’s lending institutions. At Guidant, we understand that small and medium-sized businesses are the cornerstone to a healthy economy. That’s why we strive to provide alternative small business investing solutions that assist our clients in achieving their dreams.

Finance Your Business with the Guidant 401(k) Plan

With the Guidant 401(k) Plan, you become your own financier by investing your retirement accounts into a business or franchise. As this is a self-directed investment and not an early withdrawal, there are no taxes or penalties applicable. And best of all, your new business will not have to pay the funds back as there is no debt. This opportunity can position your company for rapid growth in the early stages without using your earnings to make loan and interest payments.

At the same time, as your business flourishes and the value of the company rises so to does your retirement fund. That’s the beauty of the Guidant 401(k) Plan. If you have confidence in your abilities, unlike the loan officer at the bank, then this may be the solution to your entrepreneurial ambitions.

How the Guidant 401(k) Plan Works
• Guidant will assist you in setting up a C-Corp business organization for your new company or franchise.
• We will guide you through the process of setting up a 401(k) for your new business.
• Your retirement funds will be rolled over into the new Guidant 401(k) plan.
• The new 401(k) plan then purchases shares of the new corporation providing cash-flow to the business
• This small business financing option provides working capital for your new company without taxes, penalties, or debt.

Benefits of the 401(k) Alternative Small Business Financing Option
• Provides small business financing to start or purchase an existing business with the retirement savings you’ve already accrued.
• No bank managers or loan officers scrutinizing your every move.
• Puts your financial future entirely into your own hands. It’s not like the investment advisors have done a “bang up” job with handling your future.
• With no loan payments or interest expense, you’ll have lower overhead costs and increased cash flow. You’ll be able to invest those earnings into your business where you’ll get the most return on investment.
• Works in conjunction with SBA small business financing.
• Offers tax-deferred earnings within the plan
• You can continue to contribute your personal income into the 401(k) plan for additional retirement fund growth.

With the Guidant 401(k) Plan you get the better of two worlds. You invest your own hard-earned money into your new company and build the business and retirement fund at the same time. Guidant also offers alternative small business financing in the form of unsecured loans and equipment leasing as well. Your future is in your hands as it should be. Contact Guidant today to discuss alternative financing options for your business.

2010: The Year of the Entrepreneur

Tuesday, February 9

2010 will be the year of the entrepreneur. We are so confident that this will be the case that our cofounder David Nilssen has announced this affirmation to the entire world. Literally.

In a recent press release, Nilssen announced to the gossip engine that is the US Media that 2010 will be the year that American small business owners become the next Great American Hero.

Not only is this because so many big business are failing (or have already failed), but because so many key indicators are pointing toward a more friendly landscape for the small business owner in 2010.

To read more about why 2010 will be a year to remember – a year that we tell our kids and grandkids that American small business had a victorious revival, click here. Still not convinced you need to click the link? Well, here are some teasers from David’s top ten entrepreneurs and small business owners will be the US’s ticket out of a recession:

10. The jobless recovery will continue to be slow, and jobless.

9. Small service businesses have the advantage of being able to rely on “local marketing.”

8. Small businesses will start spending money again – and they know how to spend it smartly.

7. Growth in the 401(k) Small Business Investing industry will continue (P.S. Since this is our particular area of expertise, we thought we’d add some more info on this: Did you know that the Guidant 401(k) category of our business has grown 1,250% since 2005? Woah. That’s a lot.)

6. SaaS and Managed Services will give small companies the ability to compete with the big boys.

5. The government has created a secondary market for loans to small businesses, TARP funds.

4. Big lay-offs in 2008-09 will leave large service gaps in bigger companies that will need to be filled by an outside source.

3. While interest rates for small business loans will increase, more opportunities to acquire funding are available - with retirement fund financing being key.

2. Experienced and well-educated professionals will move their retirement funds out of the Wall Street roller-coaster and invest their retirement savings into themselves.

1. A record number of new small businesses will be started in 2010.

Wanna read it now? Here’s the link again.

How to Use a Self-Directed IRA for Small Business Investing

Monday, January 25

When many investors think of a self-directed IRA, they believe that it only gives them the opportunity to invest in stocks, bonds, and mutual funds of their own choosing. While it is true that you can invest in these vehicles, a self-directed IRA offers more options. Other investment options include real estate IRA’s, personal business investment, franchise opportunities, partnerships, private equity, and tax liens.
Most banks and brokerage firms neglect to tell you about these other investments due to their vested interest in selling you stocks and bonds. For example, if you decide to invest in your own small business, these firms do not earn any revenue. Guidant believes that you should be aware of all options for investing your retirement funds. After all, it’s your money. Contact a Guidant representative today and find out how a self-directed IRA can assist you with small business financing.

Use Retirement Funds for Small Business Investing

Whether you need start-up funds for a small business, franchise financing, or just want to diversify your retirement holdings, a self-directed IRA can provide you with the flexibility to make your own choices.

The job market has “tanked” and even if you land a position, the wages are not what they once were. Many individuals have taken the opportunity to strike out on their own and follow their dreams of owning their own business. They’ve had enough of the broken promises of job security and are taking control of their destiny on their own terms. And they are financing their small business by utilizing self-directed IRA’s, 401k, and other retirement funds without early withdrawal penalties or taxes.

The Guidant 401(k) Plan for Small Business Investing

The Guidant 401(k) Plan for small business financing allows you to invest your retirement funds in your own enterprise. A brief overview of the process is as follows:
• Guidant will assist you in setting up a C-Corp business organization for your new business or franchise.
• We will guide you through the process of setting up a 401(k) for your new business.
• Your retirement funds will be rolled over into the new Guidant 401(k) plan.
• The new 401(k) plan then purchases shares of the new corporation…namely, your new business.
• This small business funding option provides working capital from your retirement plan without taxes, penalties, or debt.

The Guidant 401(k) Plan for small business financing allows you to start your own business and, at the same time, control your retirement fund growth. If you’ve always wanted to start your own business but financing stopped you, the Guidant 401(k) Plan offers an ideal solution. Contact Guidant today for a free consultation on how to realize your dreams of business ownership.