Small Business Financing and Franchise Financing Blog

The dismal economy has left many individuals without jobs due to layoffs, downsizing, right-sizing or whatever they are calling it these days. Even the companies that are hiring have the advantage of choosing from a wide range of qualified candidates resulting in lower wages and salaries. Economists project that by the year 2010, one of every 10 workers in the U.S. will be without a job. Unemployment is at nearly 10 percent of the workforce. With these limited options, many individuals are leaving the uncertainty of the job market and striking out on their own as an entrepreneur.

According to 2006 Nobel Prize winner in economics, Edmund Phelps, it may take up to 15 years for families to recover to their pre-recession wealth. I don’t know about your situation; however, many individuals just don’t have that kind of time on their side. And the job losses keep rolling in each month. Economists are speculating that job losses for July 2009 will send another 328,000 workers to the unemployment lines. That will bring the total job losses to 6.8 million from December 2007 to the present.
There’s Good News with the Guidant 401(k) Plan

If you’ve always lamented “if I could do things over again, I’d become an entrepreneur” then this may be the ideal time to realize your dreams. At Guidant, we specialize in helping new entrepreneurs obtain small business capital to get them started on the right foot. With the Guidant 401(k) Plan, we can assist you in funding your new business without having to make loan payments every month. You can even draw a reasonable salary from the enterprise with the savings.

The Guidant 401(k) Plan allows entrepreneurs to access their 401(k), self-directed IRA, or other retirement holdings and invest it in their own business. We want to stress that this is an investment and not a withdrawal. There are no early-withdrawal taxes or penalties due; it’s simply a self-directed retirement plan that invests in the shares of your new company.

Entrepreneurs are a special breed of businessmen. They have confidence in themselves and their abilities. Problems are just little bumps along the road and they are confident of overcoming any challenge. Entrepreneurs don’t sit around waiting for the economy to recover; they take action to boost their personal economy. They become part of the economic solution and not wallow in the problems. If this sounds like you then becoming an entrepreneur has likely always been your dream.

Let a Guidant representative walk you through your small business financing options for becoming an entrepreneur. The Guidant 401(k) Plan for small business investing is an ideal option for aspiring entrepreneurs. Leave the job market behind and embark on a new path of owning your own business.

The “Forum on Jobs and Ecomonic Growth” scheduled for Thursday December 3 is already receiving criticism from small business owners who feel that these forums are nothing more than propaganda parades for the Obama administration (see Obama Jobs Forum Angers Small Business Groups).

Per the Huffington Post, many small business groups have been voicing their concern over the scheduled forum and its perceived goal of encouraging positive public opinion of the stimulus plan, and not the goal of creating new jobs.

The American Small Business League (ASBL) maintains that to help the economy, President Obama should make good on his promise to redirect government projects to small business and “end the diversion of federal small business contracts to corporate giants," as was said by Obama during his 2008 presidential campaign.

These forums, it appears, are only souring the relationship the current administration has with small business owners. Many groups believe that energy should be spent on creating new policies to encourage small business involvement in government projects.

With billions of dollars still left to be allocated in the stimulus package, it could be argued that a portion of those funds would be well invested in encouraging small business. Especially since small business accounts for a majority of private-sector jobs in America (see SCORE) .

As a company that takes pride in its clients and their entrepreneurial spirit, we are a bit biased. We would like to believe that the government can have the same can-do attitude as so many Americans who go into business for themselves every day. Why not take a chance and shake things up? Why not make an effort to focus more on small business? What could it hurt?

Your thoughts?

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.