Small Business Funding

Launch A Small Business With Your 401k

If you’re a senior who wants to augment his or her nest egg with a small business, you can use your 401K or IRA funds to do so without having to pay taxes on your withdrawals or obtain a loan. This fairly unknown funding method is becoming a solution for many people who want to run a franchise or own their own businesses. Today, many potential entrepreneurs don’t know that they can have access to tax-advantaged capital to start their own companies or businesses with their retirement account balances.

Using your 401K or IRA funds to start a business via a retirement plan investment is also known as an ROBS or “Rollovers as Business Start-up.” Self-directed retirement accounts such as IRAs and 401Ks may be used towards funding a plan that may legally support private and public stock holdings as long as these are eligible for ERISA and tax law exemptions. For ROBS, 401Ks are most popularly used.

The main concept of the ROBS is the creation of a “C” corporation as stated by law. This newly-created corporation can then sponsor a 401K that openly allows acquiring and holding eligible employer securities. After this, the entrepreneur can roll a part of his or her currently qualified retirement funds (or all of it) into another 401K. The plan is also called an “eligible individual account plan,” which then puts investments into the new corporation’s stock. The business entity, which now has funds, then buys into a franchise or gets a small business.

This procedure is much like what an individual investor does when he or she buys stock in a company or business that’s publicly traded. He or she gives the company money in exchange for holding shares as investment collateral. The publicly-traded company then has access to the money and may use it towards strengthening itself. With the ROBS, it’s pretty much the same, except for the investment being made in a company that’s privately held as opposed to a publicly-traded business.

Carina Smith is an author who specializes in financial topics concerning seniors. Puritan Financial Group. For more info onPuritan Financial Group please visit our website at http://www.puritanlife.com

Venture Capital Funding Is Just A Matter of Perspective

It is the Great American Dream to build a business, achieve success, bring it to the public and get the enormous financial rewards. Actually, there are many Great American Dreams, but this is surely a common one. In order to start it, the majority of companies will seek for venture capital funding for the essential funds to build a good idea into a large company.

 

To really understand venture capital, you need to understand it from the investor’s perspective. Imagine you have a nice chunk of change sitting in your bank account. You want to put it to work. Yes, you can shoot for the 7 to 10 percent return of the stock market, but you would rather go much bigger. Where would you look? The answer would be either commodities trading or trying to get in on companies that have the potential to go huge before, obviously, they have taken off.

 

Venture capitalist focus on this second ideal. They are looking for companies that are small now, but have the prospect of going public and going huge. We are talking about the Microsoft and Google type of sizes. If your company doesn’t have the prospect of being really big, don’t bother contacting any venture capitalist funds! The investors are looking to hit home runs, not singles.

 

Just because venture capitalist are swinging for the fences doesn’t mean they don’t take risk into account. Of course they do. In this case, they do it by diversifying. The average venture capital fund will invest in 5 to 10 companies. There is no expectation that all of them will make it. Instead, it is expected that most will fail to work out. The money lost, however, is slight in comparison to the huge rewards for the 1 to 3 companies that go public and take off.

 

Is venture capital a good funding source for a company looking to make a big move? Yes, but it is vital to remember the goals of the VCs and tailor your proposals accordingly.

 

Thomas Ajava writes for VentureCapitalInvestmentFirms.com – your online source for locating venture capital investment firms online.

Running a Small Business – Tips on How to Start Off

Almost anyone with a great business idea, a solid business plan and adequate funding can start a business. Starting any business is the easy part, but running it, is where things start to become complicated. Most people have no idea how to run, maintain and succeed in a small business. That is why many small businesses end up going out of business in less than a year. That first year is the most crucial period when you have just started a business. This is the time you will be able to gauge your business and know whether there is a future for it or not.

When you start a business, you are the decision maker of every aspect. This is from dealing with customers, to accounting to finances. Small businesses can be faced with all manner of challenges but the way you handle them can help you run it successfully. If you are not well versed with accounting you could hire an accountant. It may cost you some money but in the long run, this expert will help you in managing your finances and you will be able to see whether you are growing or not.

When running a small business, it is vital that you plan your growth. In as much as you want to be a success, too much sudden financial growth can lead to disaster. You need to know how to balance all these new developments. Always pay your debts promptly. Do not forget to factor in your debts and expenses every month.

Running a small business may force you to make changes to certain aspects of the business. Do not be afraid to make changes especially if something is not working. If you have customers that waste your time but bring in a little money, cut them lose. You can do without that obnoxious employee or that unreliable supplier. Learn from the world around you and be creative. This will help in the running of your small business.

Mercy Maranga writes content on Finance and Small Business Management. Visit her site here for more information on Finance and how to effectively Manage your small business. Small Businesses

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Short Term Sameday Loans – Obtain Fund Same Day for Small Needs

In the event of sudden crisis requirements, you eternally search around for additional economic aid from any exterior money resource. In fact, if you are on the look out for emergency financial help, then you can easily go for short term sameday loans which are an ultimate solution of complex abrupt emergencies.

You may get finance within a single day only if you apply for these loans. These advances offer extraordinary support of course to the borrowers. They may apply for this help whenever they feel that they require urgent funds. Without any doubt of delay, lenders approve the amount to them within 24 hours of clock time.

If you are feeling like having no fast way to obtain cash for your small needs even, then also you may go for this service without any uncertainty. In fact, this financial help are issued mainly for short term only and you may get small finance with the help of these schemes.

Under the 12 month loans, people are able to grab the fund up to £1500 for the time period of 1 to 30 days. It is short term help so you get the amount at higher interest rate. However, pay back the loan on time and you will not be into any kind of trouble.   

This facility is only for people who live in the UK and have the citizenship of the UK. It is necessary that they have age more than 18 years only then their application will be accepted. After that, lenders check fast loans potential of the borrowers so they should have a fixed income source. In the UK, applicant must have a checking account.

Borrowers have option of applying through the online and offline medium. However, choosing the online mode will be beneficial because of the fast and easy process. You just need to give your details in the form and lender allows the loan.

Alex Jonnes is financial adviser for Online Loanss. click on the links to know more about short term sameday loans, payday loans no faxing, payday loans no credit check and 12 month loans.

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UAV Funding Drives Aviation Engine Technology

Usually people consider general aviation as a risky industry, because the rate of accidents or death is much higher than that of even automobiles. The pilot has to make most decisions, meanwhile in commercial airline flights all the restrictions are in place.

 

This makes sense because you don’t want to have a bunch of bureaucrats riding along in the right seat with you when you’re flying your own private airplane. Nevertheless, one of the issues that has to do with general aviation is the reliability and durability of the aircraft engines. We can’t have flying cars, until we have engines that last longer, and don’t quit as much while in operation.

 

General aviation also suffers from very high costs, especially fuel use, and therefore it would be really great if these aircraft engines used a lot less fuel per hour. Now then, I was reading a few articles the other day and I had a thought, and let me briefly explain the concept, and a little bit of futurist thinking on the matter.

 

An interesting article in AVWeb or Aviation Web on June 10, 2010 titled; “Mistral Puts 300-hp Rotary Engine on Hold,” by Glen Pew seems to address the future of mid-range UAV power plants, and their reliable nature. Because of the massive amount of money being poured into the UAV industry-sub-sector, we are seeing incredible advances in fuel efficient and low-maintenance motors, capable of incredible endurance.

 

Think of the value that holds for General Aviation safety, with engines which can beat normal TBOs? TBO stands for Time before Overhaul, this is the time that an aircraft engine is expected to last, and most of the small general aviation aircraft last about 2000 hours, before you have to tear apart the engine for safety purposes. Imagine if you had to do that each time your car motor had been used for 2000 hours.

 

Consumers simply wouldn’t accept that, any manufacturer whose engine wouldn’t last any longer than 2000 hours would get a bad reputation in the industry, no one would buy their cars. If you think the Toyota, General Motors, and Chrysler recalls were bad, imagine how many recalls a company would get if their engines quit in the middle of operation every 2000 hours, and that was all the time they were expected to last.

 

So it is great to see that money is being poured into unmanned aerial vehicle technologies, because UAVs concentrate on reliable long endurance flights. And that means better power plants, and those engine manufacturers will be able to produce better engines for general aviation. This is a good thing. Please consider all this.

 

Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank. Lance Winslow believes it’s hard to write 20,000 articles; http://www.bloggingcontent.net/

Note: All of Lance Winslow’s articles are written by him, not by Automated Software, any Computer Program, or Artificially Intelligent Software. None of his articles are outsourced, PLR Content or written by ghost writers.

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