Entrepreneurs Find New Way To Finance Dream

Title:Entrepreneurs Find New Way To Finance DreamWord Count:466Summary:Statistics show that more than one million peoplein the United States start a new business eachyear.Keywords:Entrepreneurs Find New Way To Finance DreamArticle Body:

Statistics show that more than one million peoplein the United States start a new business eachyear. That number would be much higher if all thewould-be entrepreneurs had the financingrequired to get a business up and running. Inorder to accomplish their dream of businessownership, entrepreneurs are finding new andinnovative ways to finance their new ventures.According to Leonard Fischer, President/CEO ofBeneTrends, one of these new financing options isthe use of a person's existing retirement funds-apension, profit sharing, 401(k), IRA-whichallows that person to start the business he or shehas always dreamed of without tax penalties,consequences or mountains of debt.Under the Employment Retirement Income SecurityAct (ERISA), retirement funds can be transferredinto usable capital for business investments oroperations. If a person has more than $40,000 ina retirement account and is not currently

employed by the company that holds those funds,he or she qualifies for this Small BusinessAdministration (SBA)-recognized financingapproach to start a business.Retirement funds can be used for any businesspurpose, including:• Purchasing a franchise or existingbusiness• Start-up expenses, such as purchasingproperty, equipment, etc.• Working capital, including payingsalaries, franchise fees, etc.• Business expansion, such as fundingadditional franchises, locations, etc.• Equity toward SBA or other loans.

The thought of dipping into one's retirement cancause some apprehension. Through this investmentstrategy an individual actually has more controlover his/her retirement-instead of gainingminimal growth dependent on the stock market,those savings are actually being invested inone's own business. This approach often allows anindividual to set aside more money for retirementthan ever before.\"Today's entrepreneur faces an environment oftremendous competition, complexity andopportunity, so starting a business the right wayis more important than ever,\" says Dr. GermainBoer, Director of Vanderbilt University's Centerfor Entrepreneurship. \"This financing method isa good option for an individual who hasaccumulated funds in his/her retirementaccounts.\"The entire process generally takes two to fourweeks to be completed, and can be done by phone,

email, fax, FedEx and regular mail.Working with an experienced employee benefitsplan expert, starting a business is as simple asthese four steps:Step 1: Establish a C-corporation.Step 2: The new corporation creates a retirementplan.Step 3: Funds are rolled over into thecorporation's new retirement plan.Step 4: The new retirement plan purchases thestock of the corporation.\"So many people have watched their dream of owningtheir own business go out the window due to lackof funding options. We help people achieve thatdream every day using money they already have,\"says Fischer.

If you're ready to explore this innovativefinancing option, be sure to consult an expert toguide you through the specialized process.