Guidant Financial Group Blog

David Nilssen shared his expertise on Mo.com today in his article about investing a 401(k) into a new business or franchise.

He detailed his 10 Things to Know Before You Touch Your Funds, which includes advice about understanding the risks involved with such an investment and creating a solid business plan.

It really shouldn't shock anyone but we decided to write about it anyway because there was a great point made...and then missed.

In the article, the CEO of FranChoice, Jeff Elgin partially blames the credit crisis. He said that is because many aspiring franchisees "who nine months ago would have gotten financing very easily are being held up." Well, that is true. What was missed in the story is that although there has been a decline in SBA and other lending products - there has been a significant increase 401(k) Small Business Financing vehicles. More and more individuals are seeing the value of investing in a business that they control and increase value in.

Guidant Financial Group is the only Inc. 500 business that allows individuals to invest their retirement funds into a business without paying taxes or penalties. Many of these clients are buying these businesses in cash (from the retirement plan) so that initial cash generated can go back into the business as apposed to being sent to a bank in the form of an interest payment! In Q1 2009, Guidant announced nearly 30% growth in it's business from 2007 to 2008.