My Experience With The Rollover As Business Startups To Invest In My Business.
I trained as pastry chef and worked both in restaurants and bakeries honing my craft and creating wonderful products. Over time, family and friends delighted in my personal repertoire of recipes and encouraged me to open my own bakery. It wasn’t until the perfect bakery location became available that I decided the time had come for me to venture out on my own and start my own business; after years of working for someone else, I decided to take all of my hard work, energy, and ideas and invest in me! While I had the experience, drive, and support of family and friends, I lacked enough working capital needed to start the bakery. I looked into securing a bank loan, but the interest rates meant that I would be working with little to no capital for longer than I could afford. And, while my friends and family were more than encouraging and willing to invest in me, I wasn’t comfortable taking a risk with their money. Moreover, I needed quick access to business funding capital as the bakery location I wanted was sure to rent fast.
After some research online about alternative financing options, I came across an article about Rollover As Business Startup (ROBS) or 401k small business financing transaction. Essentially, the ROBS transaction allows you to use your personal 401k for your business investment or to start your own business. What appealed to me was also the fact that I didn’t have to pay any interest or incur penalties for using my 401k. Under the ROBS arrangement the business owner's 401k invests in the shares of common stock. I know, it sounds overwhelming but I worked closely with an attorney and a compliance professional who guided my through the entire process to ensure that I was compliant with IRS guidelines. The transaction cost me $3000 but it was money well spent! They answered all of my questions and completed all of the necessary paperwork to secure my transaction. From start to finish, the entire ROBS transaction took no more than a few weeks to complete. Within a short time, I had the working capital needed to start my business and was on my way to achieving my dream! For those with little to no working capital, or maybe your credit isn’t exactly flawless, consider the ROBS transaction as a means to invest in your business and yourself!
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