Small Business Financing and Franchise Financing Blog

next big franchise interviews David Nilssen

noreply@blogger.com (Guidant Financial Group) — Thu, 06 May 2010 19:54:00 +0000

A Diamond in the Rough

noreply@blogger.com (Guidant Financial Group) — Tue, 09 Mar 2010 18:00:00 +0000

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

noreply@blogger.com (Guidant Financial Group) — Tue, 02 Mar 2010 18:00:00 +0000

In a recent article on CNN.com, 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

noreply@blogger.com (Guidant Financial Group) — Tue, 23 Feb 2010 18:00:00 +0000

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: NextBigFranchise.com. 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 NextBigFranchise.com. 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 NextBigFranchise.com 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 NextBigFranchise.com 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

noreply@blogger.com (Guidant Financial Group) — Tue, 16 Feb 2010 18:00:00 +0000

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

noreply@blogger.com (Guidant Financial Group) — Tue, 09 Feb 2010 18:00:00 +0000

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

noreply@blogger.com (Guidant Financial Group) — Mon, 25 Jan 2010 18:00:00 +0000

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.

More Money for Small Business?

noreply@blogger.com (Guidant Financial Group) — Mon, 25 Jan 2010 17:22:00 +0000

It is no secret that the Small Business Administration is not lending as much as it used to. It used to be that a decent percentage of our 401(k) Small Business Financing clients were securing our services in conjunction with an SBA loan. Over the last year, though, this has changed dramatically.

We hardly see people coming to us with the thought that an SBA loan will be a part of their financing package, and, even less do we see people who already have SBA financing in place.

This all may change, though, with new initiatives by the Obama Administration to broaden the Troubled Asset Relief Program. According to BusinessWeek.com (see Obama’s New Push to Help Small Business Get Loans) these initiatives will “lower the cost of capital for small banks and community development financial institutions that present plans to the Small Business Administration for increased small business lending through the SBA’s flagship 504 and 7(a) programs. It will also more than double the maximum size limit of some of its guaranteed loans to small business owners.”

This is all great news; however, we are wondering what, if anything, this will mean for lenders looking for smaller amounts. It used to be that we could refer clients to our lending partners to secure a loan of $75,000 - $100,000. Not anymore. Now all of our partners tell us that the SBA is practically refusing any requests for less than $250,000.

What about the true small business owner?

Fortunately, some thought has gone into these smaller loans. Microloans, which are popular for start-ups and struggling businesses, will see an increase in its maximum amount from $35,000 to $50,000.

Our hope is that this is a sign of things to come: more money for the prospective small business owner – and a jumpstart on the US economy.

How to Choose and Finance a Franchise Opportunity

noreply@blogger.com (Guidant Financial Group) — Wed, 20 Jan 2010 18:00:00 +0000

Millions have lost their jobs and competition for employment is becoming intense. According to the U.S. Commerce Department, wages and salaries dropped 4.7% in the previous 12 months ending in June 2009. With so many out of work, the competition for jobs is causing wages to fall. This does not bode well for the job seeker. Is it time to finally take the plunge and start that business you’ve always dreamt about? If you find yourself out of a job while the economy sorts itself out, you may want to consider determining your own destiny and purchase a franchise opportunity.

One of Guidant’s specialties is in arranging alternative franchise financing options. In fact, Guidant believes you already have the money to invest in a franchise. It just takes a little ingenuity and creativity (traits that are critical to business success) to arrange franchise financing that provides the best opportunity for success.

How to Choose a Franchise:

The International Franchise Association, of which Guidant is a member in good standing, reports that there are in excess of 1,200 franchise brands in the United States. That’s a lot of due diligence to consider. So, how does one sort through these opportunities and choose a franchise that fits their needs?

Choose a franchise that interests you. What are your interests, goals, and hobbies? Don’t just focus on your current interests. Is there an activity or hobby you previously enjoyed that you haven’t thought about in years? Get creative and brainstorm ideas.

Consider the amount you can invest. This may eliminate higher-priced franchises if you are unable to obtain business financing. We should note here that you may be able to invest your retirement funds into a franchise opportunity. A Guidant representative will walk you through the process. According to the ERISA (Employee Retirement Income Security Act) of 1974, potential franchise owners can finance their own business from their retirement funds with no taxes, penalties, or debt. Intrigued?

Perform due diligence before signing a franchise agreement. Enlist the services of a CPA and attorney before making an investment in a franchise. It’s just good business practice.

A Creative Franchise Financing Option

We understand the hardships associated with obtaining franchise financing in the current economic climate. That’s why we focus on coming up with solutions that allow our clients to obtain the capital they require for business ownership. And for most of our clients, the money is obtainable from their 401k or other retirement funds. We can show you how to investing these savings into a franchise without incurring early-withdrawal taxes and penaltiesYou’ll be able to control your livelihood, the success of your franchise, and the growth of your retirement fund. That’s destiny.

Down Payment for SBA Loan

noreply@blogger.com (Guidant Financial Group) — Fri, 15 Jan 2010 18:00:00 +0000

SBA loans are difficult to obtain in the first place. Combine this with the fact that once you do secure your SBA loan you will need to provide at least 20% cash down and it is no wonder that many prospective small business owners don’t even consider SBA loans as a viable financing option.
What many entrepreneurs do not know, however, is that the Guidant 401(k) Small Business Investment Program can be used to provide the down payment for your SBA loan from your existing IRA or 401(k) accounts, tax and penalty free.
This program is different from a loan against your 401(k) plan or a private note against the assets in your retirement plan. The Guidant 401(k) enables you to directly invest your retirement funds into your own business – as an equity partner. Just as it can buy stock in publicly traded companies, your IRA or 401(k) can invest into your privately held business (when done correctly!).
What many people don’t realize is that the cash they need to inject as the initial down payment for their SBA loan may already be in their possession. In fact, many SBA lenders and SBA sponsored programs recommend that people consider the Guidant 401(k) to secure the required cash investment to proceed with an SBA loan. This can be a much better alternative to taking a distribution and paying the early withdrawal penalties and taxes. Unfortunately thousands of people, who don’t know they have a potentially better option, take the distribution and pay upwards of 40% to the government! It’s simply not necessary.
Guidant has worked with numerous SBA approved lenders and SBA sponsored programs, like SCORE, to provide entrepreneurs with an alternative to mortgaging properties and cashing out retirement plans at a severe penalty to meet the down payment requirement.
Do you have money in a traditional IRA or 401(k)? Are you hoping to secure an SBA loan, but are unsure about where your good faith cash is going to come from? Or, are you hoping to obtain a larger SBA loan, but only have enough liquid capital to meet part of the cash requirement?
Call us. You may already have the money you need – you just don’t know how to access it yet.

Follow Your Dreams to Become an Entrepreneur and Leave the Job Market Behind

noreply@blogger.com (Guidant Financial Group) — Fri, 11 Dec 2009 18:00:00 +0000

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.

Small Business Owners Want ACTION, Not Opportunity for REACTION

noreply@blogger.com (Guidant Financial Group) — Mon, 07 Dec 2009 18:22:00 +0000

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?

Alternative Small Business Financing Options

noreply@blogger.com (Guidant Financial Group) — Mon, 07 Dec 2009 18:00:00 +0000

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.

5 Steps to Franchise Ownership - Guidant Webinar Series

noreply@blogger.com (Guidant Financial Group) — Thu, 12 Nov 2009 23:48:00 +0000

In the past few years our country has seen more than 6 million American jobs lost and unemployment rates rise to more than 10%. After the recession in the early 90’s it took an entire year for unemployment rates to peak. If this trend holds true, unemployment rates could continue to rise until the end of 2010 or early 2011. For this reason, we created 5-Steps to Franchise Ownership to help individuals investigate self-employment opportunities.

Guidant has brought together subject-matter experts from the franchising industry to create a webinar series called 5-Steps to Franchise Ownership. “Each expert plays a pivotal role in helping individuals start, acquire, fund and grow a franchise,” says Guidant cofounder David Nilssen. Brian Miller, President of The Entrepreneur’s Source; Jack Santaniello, a partner in the law firm of Shumaker, Loop & Kendrick, LLP; Reg Byrd of Direct Connect Ventures; Lori Block, a widely recognized franchise executive; and Nilssen will serve as presenters in their field of expertise.

5-Steps to Franchise Ownership begins on November 17th and will include a free, weekly webinar to the public, culminating in a final presentation scheduled for December 15th. The purpose of this series is to provide individuals with the information needed to determine whether franchising is right for them. This includes, but is not limited to, finding a franchise, franchise financing, and building a strong business plan.

For more information – CLICK HERE!

Interview with a Franchise Consultant

noreply@blogger.com (Guidant Financial Group) — Fri, 09 Oct 2009 00:14:00 +0000

Interview with a Franchise Consultant
By David Nilssen
SmallBusinessFinancing.com

On a recent business trip to Arizona, I had a chance to sit down with Steve Valentine – a franchise consultant. A franchise consultant helps individuals investigate franchising and they identify and acquire a business concept. Over the years, Steve Valentine has referred us many clients who have gone on to buy a franchise or small business. Steve and I met in Phoenix where we enjoyed some southwester food and good conversation. Here are some excerpts from our discussion:

Nilssen: Tell me about how you got into franchising?

Valentine: I was a co-founder of a commercial real estate based franchised concept. After selling my interest to my other partners I took about 4 months off from working all together to explore my next direction. During that time I was introduced to a consulting firm by the founder of Sylvan Learning Centers. That was 5 years ago and one of the greatest experiences I have had the privilege of being a part of.

Nilssen: What do you do for a living?

Valentine: As a [franchise] consultant I help people accelerate their attainment of financial independence through business ownership.

Nilssen: What is a typical day look like for you?

Valentine: If summarized from the outside looking in-pretty boring until you realize how rewarding the interaction with people is for me. Lots of time on the telephone and in front of a computer, but also a ton of time to think and visualize how to help my clients while keeping track of progress that clients are putting into their investigation. I keep myself to a Monday through Friday 8:30 to 6 work schedule but do make compromises outside that time line when a client requests. I’m also not afraid to work in the evening after my kids are in bed but almost never lose time with them on weekends and at the dinner hour to bedtime period. Working from home is the best part of my day! If my 4 year old wants me to eat macaroni and cheese with him for lunch I can usually say Yes, no problem!

Nilssen: What are the minimum requirements for buying a franchise?

Valentine: From a non-monetary perspective I believe you must have an incredible passion and coachable attitude towards achieving your goals and constantly seeking personal improvement. It’s so important to utilize the framework of others who can share how they followed a system and used the same resources provided to minimize mistakes and more effectively achieve the desired outcome. One other requirement is the absolute determination to never consider failure as an option. The tenacity and perseverance factors are more important than education and work experience or background.

Nilssen: What are the more common businesses you're seeing people buy these days?

Valentine: [There are a] large number of people who still buy the wrong franchise. Even with best intentions to generate or provide great information via the internet or through seminars or books about finding the right fit, most people use a flawed and emotionally based evaluation process to make a significant decision of this magnitude. The flaws and ineffectiveness isn’t intentional or because these resources mentioned aren’t with best of intentions but going from being the employee or even manager to becoming a successful owner and entrepreneur require more transformation that usually anticipated or acknowledged. [To directly answer] your question are businesses that are resilient to economic ups and downs and has a long term growth strategy for building equity. Services and products alike can fall into this group with real strength in healthcare, education, employment and personnel, maintenance, personal services.

Nilssen: What are some of the most common mistakes you see new business owners make?

Valentine: Having unrealistic expectations of how much effort and energy they need to put forth for more than the 1st year or 2. Another common mistake is to stop seeking out help and advice from both the franchisor and other owners when things aren’t going well. The last mistake might be the most dangerous mistake-deciding to abandon the system because they have now decided that they know more about how to run the business than the management team or founders used to build success. If they invested the right due diligence into picking a great concept that offered what they wanted the most then they should stick with the processes and methods that worked before they became an owner and are the foundations for building a really successful business even when results aren’t delivered or realized immediately.

Nilssen: How long does it take to find a franchise?

Valentine: If given appropriate attention and focus without pushing out of the way other important issues in your life the timeline could easily be completed in about 6-10 weeks. I’m a believer that if you really want to change what you are doing in life the time factor will take care of itself fairly quickly.

If you would like to contact Steve Valentine – click here.

Small Business Loans – When Will the Environment Improve?

noreply@blogger.com (Guidant Financial Group) — Mon, 31 Aug 2009 07:26:00 +0000

By Todd Taskey

When Will the Small Business Loan Environment Improve?

This is a valid question if you are an economist wondering when the macro economic environment will improve. If you are a small business owner looking for working capital or a business loan, it is irrelevant.

Better questions: Can I get approved for a business loan and how?
In case you have economic tendencies, let me answer the first question bluntly; Not soon. As I stated in an earlier post, there are many reasons why ARC loans will not work well for small business owners. Most of the comments on from this post are from business owners declined for an ARC loan.

Additionally, The largest lender to small business owners for each of the past 9 years has been CIT Small Business Lending Corporation. CIT is a bit distracted these days trying to avoid bankruptcy. Regardless of their advertising and rhetoric, Bank of America has made just 484 loans for $20 million in the 12 months ending April, 2009. Are you kidding me?

So, will the SBA come to the rescue with a SBA 7(a) loan? Would you if it was your money? Consider the SBA recorded $2.1 Billion of bad small business loans in 2008, double their previous record. Small business failures are climbing and payments are becoming more delinquent. Don’t expect the SBA to flush more money down the toilet by lending to companies that should not be in business anyway. Their lending dropped 30% in the past quarter

So, how about some good news? As the month of July comes to a close, we’ve helped real business owners of almost every credit profile, with the following funding. I offer this not to pat myself on the back but to offer evidence of real businesses I know received real money.
Golden Coral in Midwest received $140,000 on 7/28/2009.
Family Rehab Center in California received $100,000 on 7/30/2009.
Cigar Bar in Florida received $60,000 on 7/11/2009.
Internet Service Co in California received $95,000 on 7/21/2009
Ihop Restaurant in Idaho received $65,000 on 7/7/2009.
Mexican Restaurant in Mass received $40,000 on 7/16/2009.
Chiropractor in Virginia received $30,000 on 7/19/2009.

All of these companies received small business financing because they were focused on the "micro economic" issues of their business. Business credit score, time in business, revenues, timely vendor payments, current mortgage payments, etc. These factors make business loans available. In any business lending environment, loans get made to qualified business owners. Focus on being one of them and you’ll find that money is available for growth or cash crunch regardless of macro economic circumstances.

Todd Taskey has over 20 years experience helping small business owners be more effective financially. After 17 years as a Certified Financial Planner, Todd is now a Principal at Potomac Business Capital, an independent firm that helps arrange working capital and business financing through SBA loans, private equity, business cash advance, equipment leasing, traditional loans and other creative financing. Located in Bethesda, MD, he serves clients natiaonally and also blogs for Business Management Daily and Wrong Question.

Do Small Business Loans Work for "Real" Small Business Owners?

noreply@blogger.com (Guidant Financial Group) — Wed, 26 Aug 2009 07:39:00 +0000

By Todd Taskey

Why Small Business Loans Don't Work for "Real" Small Business Owners

There are multiple reasons, and if you have every looked for working capital or a small business loan for your business, you know how frustrating the process is. Today is even more difficult.
However, once you become a business owner, the challenge becomes even greater. Your credit score typically drops, debt load increases and your attractiveness to traditional lending and credit companies drops like a rock. that, combined with a very tight credit market is putting the squeeze on millions of business owners.

My last post discussed why you can not rely on the ARC program, however, you need capital to take advantage of an opportunity or get through a rough patch.
So, let’s ask a better question: What really works?

Access to small business working capital is constantly changing and two of the most popular form initial equity capital that fueled small business growth are now effectively closed. Business Credit Cards and Home Equity loans have all but dissapeeared durning this credit crunch. Access to small business capital was a problem in September 2008 and working capital is still a problem in July 2009.

As business owners are forced to become more creative, there are effective options that are getting working capital into the hands of small business owners.

Funding Program Required Credit Time in Business Potential Funding
Business Cash Advance: 550+ 1 year + up to $150,000
Streamlined Business Loan: 690+ 2 year+ up to $125,000
Equipment Collateral Loan: 660+ 1 year+ up to $1,000,000
SBA Guaranteed Loan: 675+ new + up to $1,000,000+
Business Credit Cards: 650+ Effectively Closed
Home Equity Line of Credit: 600+ Effectively Closed

Business Cash Advance is a great solution because it really works and will over look tax liens, debt load, “credit issues” and other problems traditional banks can not get past. Business cash advance offers funding without any personal guarantee or collateral, and, given they are taking 100% of the risk in the financing transaction, the cost of capital is significant. If you get a $50,000 you can expect to repay about $65,000 – $70,000 and payments will come directly from your credit card processing or bank statement. Expensive capital, but effective, quick and often successful.

Streamlined Business Loan is an evolution of business cash advance (also known as merchant cash advance). This program allows you to use a personal guarantee and cut the cost of your working capital loan significantly, perhaps as much as 40%-50%. They funding is quick (two weeks) and easy to apply for though you’ll need to have a credit score of 690+ and 2 years worth of tax returns to qualify. In many cases this option is cheaper and easier on cash flow than the business cash advance, but you need better credit and must feel comfortable with a personal guarantee.

Equipment Collateral Loan is an effective way to get a well priced loan if you own equipment (completely paid) or will be buying some soon. Either will require a personal guarantee and the equipment will act as collateral for your loan. If you are buying new equipment you can finance almost all your purchase. If you are using equipment you already own, expect to borrow about 50% of the current value of the equipment. Rates and terms are typically better than the two options above due to your good credit, collateral and personal guarantee.

SBA Secured loans (both 504 and 7A) are great loan products if you have strong credit, lots of collateral and plenty of patients. These loans are made by your local bank and the SBA will guarantee the loan in the event you default. The process is long (60- 90 days) and frustrating at times. In today’s environment they are even more difficult to qualify for but represent the best pricing you will likely qualify for.

Business Credit Cards are very difficult to acquire today and many that have been issued over the past year are being withdrawn. They are not a very good option for small business working capital in the summer of 2009.

Working capital today requires thinking outside the box, a trait traditional lenders are not know for. If you have had success with a working capital loan, please share your comments.

Todd Taskey has over 20 years experience helping small business owners be more effective financially. After 17 years as a Certified Financial Planner, Todd is now a Principal at Potomac Business Capital, an independent firm that helps arrange working capital and business financing through SBA loans, private equity, business cash advance, equipment leasing, traditional loans and other creative financing. Located in Bethesda, MD, he serves clients natiaonally and also blogs for Business Management Daily and Wrong Question.

Find Working Capital for Your Business

noreply@blogger.com (Guidant Financial Group) — Fri, 21 Aug 2009 07:07:00 +0000

By Todd Taskey

I talk with business owners across the country every day who ask about the most effective way to get additional working capital (not start-up capital) for their business. In most cases we're able to help them locate the funding they need. So...question answered.

The problem is, they're asking the wrong question and getting an incomplete answer.
Better Question:

Why do I need working capital?

Business owners often ignore the underlying question when the new funds arrive. Sounds foolish, but it happens every day. Moving from crisis to crisis is no way to operate your business. You may feel compelled to douse the next fire rather than take a hard look at the more difficult strategic questions, but that merely masks long-term (more expensive) problems.

I have these conversations almost every day and notice 1) Not much has changed when I get the call looking for the next round of funding, and 2) most cash needs stem from one of the following issues just below the surface.

1) Initially under-capitalized
I spoke with the owner of a fruit bouquet franchise this morning who was searching for capital and admitted he was under-capitalized from the outset. High on expectation and optimism, he launched ahead regardless.

In 16 months of business, his credit score has dropped 140 points, which makes most traditional funding impossible. Plus he’s already sold away 25% of his future credit card sales to help make ends meet.

2) Slowing sales
The impact of 2008’s fourth quarter has slowed sales almost everywhere. So, what have you done about it? What changes have you made to cut costs, reduce inventory and pick up market share? Recessions always provide opportunities; they are just not as obvious as the downfalls. Additional capital and the impact on cash flow will not magically improve sales; that is up to you.

New capital will either reduce your equity or be a drag on what is already lower revenue.

3) Poor planning
Many national franchises require their owners to remodel their location every 5-7 years, yet this seems to “surprise” even longtime owners who scramble for the necessary funds.
A friend of mine owns several limited-service hotels, and his franchise company requires that they set aside a percentage of revenues each year for capital improvements. The reinvestment into his properties is significant, but already budgeted for in a planned, considered manner.
What are you preparing for? Whether required or not, advance planning makes you a better and more profitable business owner. “Unexpected” events are part of business and part of life — start preparing for them now.

4) Unplanned opportunity
We’re an optimistic bunch, which is probably why we’re in business for ourselves. Every time I get a call for capital because of an opportunity, I inquire if the excitement is because it offers something better or just something different.

I just spoke with a restaurant owner who has a great opportunity to take over a vacated Bennigans restaurant location at about 20% lower rent than the past tenant. So I wondered: Why did that location go out of business (the chain filed bankruptcy), what is the traffic flow to that location, and if their new concept could fill a location twice their current size, what would be the impact to their first location?

It was the first time he’d pulled his attention from the lower rent and “free equipment” to consider these issues that could put his entire company at risk. Not to mention the impact to his current cash flow and lifestyle.

Getting additional capital is never the complete solution to what ails your business. Look deeper and ask more focused, pointed questions to yield better results.

Todd Taskey has over 20 years experience helping small business owners be more effective financially. After 17 years as a Certified Financial Planner, Todd is now a Principal at Potomac Business Capital, an independent firm that helps arrange working capital and business financing through SBA loans, private equity, business cash advance, equipment leasing, traditional loans and other creative financing. Located in Bethesda, MD, he serves clients natiaonally and also blogs for Business Management Daily and Wrong Question.

Small Business Loans from President Obama's ARC Program

noreply@blogger.com (Guidant Financial Group) — Mon, 17 Aug 2009 19:47:00 +0000

By Todd Taskey

I really hate to be so negative, but if we look at a couple simple facts, the entire ARC (America's Recovery Capital Loan Program) is a $350 million mess waiting to happen. This entire process is flawed from top down. It sounded good on the campaign trail (it always does), but 9 months later, what do we know?

1 - We have about 14 million small businesses (9 employees or less) in the US that collectively employ about 43 million individuals. President Obama is hoping they can help lead the way out of the current recession by providing a minuscule fraction of them small business loans up to $35,000, provided it is used to eliminate other debt.

2 – Many banks do not have the capacity to make these business loans, but more importantly, they do not want to make the loans as there is no ability to charge any fees or generate any income. It sounds great from the podium to say "no fees" but without incentive, it is just a distraction while many banks are trying to heal their balance sheet.

3 – The SBA doesn’t really want to make these small business loans. Publicly they will say differently, but the SBA loans default rate in 2006 was 2.4%, which jumped to 4.8% in 2007. 2008 saw a record of 12% default which would be a complete disaster for a lending company charging 25% interest. The typical small business loan through the SBA loan program has a current interest rate around 6%. They (we) cannot afford more losses, regardless of the rhetoric.
So, the SBA can’t afford to make these small business loans, the banks do not want to make the loans, it is not a solution for the business owner’s problem or a solution to the recession. So, why develop and promote the ARC program? Well, it allows our government to show they are responsive and the Democratic Party can appeal to the small business owner in advance of the next election. It is a shame they are willing to blow a third of a billion dollars in that pursuit.

So, that is the problem. Let's talk about solutions for business owners who need working capital or a small business loan to really grow their company. My next post will outline four real world options that usually result in a small business loan or working capital: Business Cash Advance, Equipment Lease, Secured Small Business Loan and SBA loan program.

If you have any experience with these programs, I welcome your comments.

Todd Taskey has over 20 years experience helping small business owners be more effective financially. After 17 years as a Certified Financial Planner, Todd is now a Principal at Potomac Business Capital, an independent firm that helps arrange working capital and business financing through SBA loans, private equity, business cash advance, equipment leasing, traditional loans and other creative financing. Located in Bethesda, MD, he serves clients natiaonally and also blogs for Business Management Daily and Wrong Question.

Actions Steps for Business Startups

noreply@blogger.com (Guidant Financial Group) — Fri, 19 Jun 2009 20:41:00 +0000

Entrepreneur.com recently published an article called, 7 Essential Startup Steps. For the most part, this article did a good job of pointing out steps that an entrepreneur should take before starting or even buying a business or franchise to provide a greater likelihood of success. They suggested that one:

· Do more research on their industry / market
· Develop a strong capital strategy (small business financing)
· Hire an experienced business attorney
· Find a qualified tax professional
· Choose the right business entity
· Create a strong name
· Apply for and obtain the proper licensing and permits

This information can be extremely helpful for entrepreneurs who are often overwhelmed in the early stages of their businesses development. Having helped more than 4,000 people fund a business through 401(k) small business investing, Guidant Financial has seen many different people go into business for themselves. We know that there is one step (though we are over generalizing it) that brings immeasurable value to a new small business or franchise owner - building a great team! This can include, but is not limited to, a business broker or franchise consultant, business attorney, tax professional and many others.

If you are evaluating whether to buy a business or franchise, and would like to meet a professional in any of these areas (or simply need financing) - call us. We will happily make an introduction!

Don't Sabotage Your New Business

noreply@blogger.com (Guidant Financial Group) — Wed, 03 Jun 2009 18:16:00 +0000

Scott Halford's column, Brainy Business, was fantastic today! Found on Entrepreneur.com, Scott focused on How to Avoid Self-Sabotage. He points out three very great points to consider:

Avoid the "yes but..." trap. Instead, try using "yes and" so that you're additive to the idea process, not a detractor. You'll create barriers for yourself if you allow "yes but" to infect ideas.

Create separate from evaluation. Brainstorm ideas free from evalution will allow creativity to flow. You can always go back later and try to evaluate whether it's valid or not.

Think first, speak second. If you verbalize a negative emotion...it's more likely to become true (even if it's not in the first place).

We found this article very interesting because many individuals talk themselves out of starting a business or franchise because they act emotionally rather than logically about the decision. In addition, some of the greatest ideas never get off the ground because they are evaluated too quickly.

So what is the real lesson? Let your steak marinate for a few days before you cook it.

Potential Tax Hikes Force People to Reconsider S or C Corp

noreply@blogger.com (Guidant Financial Group) — Wed, 03 Jun 2009 18:15:00 +0000

Let the debates begin!

In President Obama's recently proposed budget, there is a future tax break coming for the middle class and the cuts, enacted on upper-income taxpayers under George W. will be allowed to expire at the end of 2011. Nothing has yet been finalized - but - it has started some pretty intense chatter.

In "To Avoid Tax, Set Up as a S-Corp or C-Corp?", BusinessWeek reported that most small business are structured as an S-corporation but more are considering a C-corp status due to worries about future tax hikes. The story reports that individuals currently taxed at 33% would see a 10% hike - to 36%. Thos at 35% would see a steeper increase to 39.6%. Because an S-corp passes income onto the business owner's personal tax return and inflates their personal earnings - even if they don't take it as salary.

Karen Klein reported she has "clients that are considering terminating their S-corp election, and we have some that were contemplating going from C-corp to S-corp, and they're revisiting their assumptions." In her article she also mentioned that "what we don't know is whether we'll have higher tax rates for corporations in the future. We may make a decision now based on today's rates but in the long term if corporate tax rates change then we could find out we've actually done something that will have a negative impact."

Their are many advantages, and disadvantages to both corporate entities. The only way to be sure which is the best for your business is to talk to your qualfied tax advisor.

The Top Low-Cost Franchises

noreply@blogger.com (Guidant Financial Group) — Wed, 03 Jun 2009 18:14:00 +0000

Do you think you need hundreds of thousands of dollars to buy or start a business? That may not necessarily be true! There are many low-cost franchise opportunities for individuals who are interested in owning a business.

Each year, Entrepreneur Magazine releases their Franchise500 list and subsequent lists to celebrate different franchise categories. This year, they ranked the following businesses as the top low-cost franchise opportunities:

Instant Tax Service
Jani-King
Jan-Pro Franchising Int'l Inc.
Kumon Math & Reading Centers
ServiceMaster Clean
Merle Norman Cosmetics
Stratus Building Solutions
Jazzercize Inc.
Vanguard Cleaning Systems
RE/Max Int'l Inc.

These franchisors, although not endorsed by either Guidant Financial Group or Entrepreneur, offer a way for new small business owners, franchisees and entrepreneurs to get into business for less than $50,000. A business or franchise of this size can still be financed, fairly easily, in this market. Many people are using 401(k) small business investing or unsecured loans to acquire their business. In addition, an SBA loan can still be a viable option.

Before you invest in any business or franchise it's important that you investigate the opportunity by interviewing attorneys, consultants and existing franchisees (if applicable). In addition, make sure you work with a reputable small business financing company so that you can adequately capitalize your small business or franchise investment.

Advanta to Freeze Small Business Credit Cards

noreply@blogger.com (Guidant Financial Group) — Wed, 03 Jun 2009 18:13:00 +0000

Last week Advanta Corp. said they will freeze nearly one million small business credit card accounts to preserve its capital reserves. In an article posted on May 23rd, The Philadelphia Inquirer reported that the company has recently eliminated 300 jobs, cut its dividend by 88% and posted a first-quarter loss of $75 million. In addition, it was said that industry analysts described the move as unprecedented and indicative of severe financial stress.

Many small businesses rely on credit to manage cash flow or invest in growth initiatives. Having business credit eliminated or frozen can significantly impair a business’s ability to survive. If you find yourself in a position where you need to gain access to unsecured business credit, please contact us.

In order to qualify you much have a credit score (FICO) above 680, have credit utilization under 50% and own a home. Recently we helped a client obtain $106,000 in unsecured loans...perhaps we can help you next! If you want to submit for more information, please CLICK HERE.

Considering a Small Business or Franchise?

noreply@blogger.com (Guidant Financial Group) — Wed, 03 Jun 2009 18:05:00 +0000

Many of our Guidant 401k clients are either current franchisees or seriously considered purchasing a franchise during their due diligence process. Why? Because franchises offer a lot of benefits to any entrepreneur.

Earlier this week, The Wall Street Journal published an interview with experienced franchise consultant Britt Schroeter (see The Franchise Decision), which includes many insights into who franchising works best for, why it is so prolific in a down economy and what to keep in mind when considering a franchise.

As Ms. Schroeter, who has worked with Guidant in the past to obtain financing for her clients, tells the WSJ, “franchising is entrepreneurship with training wheels.” And, during these uncertain economic times, when the entrepreneurial itch comes along, many prospective new business owners take no issue with starting something with some extra safety rolled in.

We definitely think that the interview with Ms. Schroeter is a very useful resource … even for those who are considering purchasing an existing business, and not necessarily a franchise.

Some suggestions Ms. Schroeter has for prospective franchisees, which (we think) are helpful for anyone considering a business purchase:

“As for general guidelines, I advise my candidates to always shop within
their means. People assume that it takes a lot of money to make a lot. Not true.

“There are franchising opportunities with low investments that have some of the strongest [returns on investment] around,” she tells the WSJ.
“The emergency-restoration industry [that services flood, fire and other catastrophe victims] is one. Commercial cleaning also can be a very low-ticket business.”
“Consider options where you can keep your job and start a franchised business on the side. That way you have the security of your job and can move into your new business full time when it’s financially viable.”
“I’ve always taken “fast growth” with a grain of salt. You need to make sure you select the franchise based on reality, not hype. Climbing on board a fast-moving train is great, as long as the track is solid. Rapid growth can be a sign of a healthy system—most of the time.
"But because a lot of others are getting into a franchise doesn’t mean you need to be any less careful. Do full diligence. Do your homework. Think for yourself.”