Guidant Financial Group Blog

Stocks Rally on European Hopes

Friday
U.S. stocks rallied on Friday, a possible reflection in investors' hopes that the upcoming European Union summit will result in a plan for the European debt crisis.

The Wall Street Journal reports Michael Farr, president of portfolio-management firm Farr, Miller & Washington saying that, "Every whiff of promise that comes out of Europe leads to another 100 points to the upside . . . But everything that looks like gridlock knocks 100 points off."

Read the full article here.


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posted by Garrett @ Guidant @ 8:37 AM 0 comments

Small Business Could be Key to Economic Recovery

With the announcement today that unemployment fell to 9.1 percent in July, fears may be lessening about the state of the national recovery.

Though experts agree that it will most likely get worse before it gets better, one theory indicates that small business could inject a much-needed boost that will help turn things around.

In a report by ABC News, Brian Miller of The Entrepreneur's Source commented, "The primary engine for job growth in the U.S. is the creation of small business." He believes freeing up more liquidity and capital for people to start businesses will stimulate growth.

Read the full article here.


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posted by Guidant Financial Group @ 3:35 PM 0 comments

Franchise Sales Down in Recession (Duh!)

Thursday
On April 27th, 2009, the Wall Street Journal reported that franchising sales have declined due to the recession. Really??? Duh!

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.


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posted by Guidant Financial Group @ 12:06 AM 0 comments

Guidant Realizes Significant Growth in 2008

Leading provider of self-directed IRA and small business financing services, Guidant Financial Group , has reportedly (official number coming soon!) seen a 23% increase in revenues in 2008 over 2007. That is really exciting!

Wait...Wasn’t 2008 a horrible year for American small businesses?

Sort of.

It is true that for many Americans, 2008 is a year they would rather forget. Some of the challenges that the country faced include:

· Record foreclosures
· A protracted and often controversial Presidential Election
· The continuing wars in Iraq and Afghanistan
· The beginning of a global recession
· Skyrocketing fuel prices
· Unemployment rates nearly doubling
· The credit crisis

Guidant’s co-founder, David Nilssen, has been quoted as saying, “Guidant’s business is in some ways, recession resistant. When the economy is doing well, people love to invest. In tough times—times like we are experiencing today—smart investors see opportunity.”

We know real estate prices are depressed and fewer small businesses are being opened. The dearth of willing and able investors has created an imbalance, giving a strong advantage to buyers—it is a “buyers market.” Two years ago, negotiating down real estate prices was unheard of. Today? It’s a very different story.

Do you think there is opportunity to profit in this market?

Leave your comments...


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posted by Guidant Financial Group @ 12:01 AM 0 comments

Is now the right time to buy a franchise?

Tuesday

Is now the right time to buy a franchise? Well, FranChoice CEO, Jeff Elgin believes so. In an interview with Jenna Lee, Elgin said, “You just have to pick your spots carefully. You want recession-resistant businesses, like hair care, restoration or senior care—markets that are growing rather dramatically.”

Rising unemployment, light consumer spending and retail sales—and low consumer confidence in general—has many people worried about the economic outlook. Elgin agreed that it is tough out there— particularly for a prospective franchisee looking for financing. “But everyone understands that this [small business] is where jobs get created.”

Guidant couldn’t agree more. As a leader in small business financing Guidant is very familiar with the financing troubles Mr. Elgin speaks of. But hope is not lost. Deals are getting funded. Last year Guidant helped over 1,700 people buy a franchise or small business. A significant portion of those individuals did not opt for a loan, but rather invested their retirement funds into the new venture. They used our 401(k) Small Business Financing vehicle. Those individuals chose to purchase their business by investing their retirement funds into something they control and build.

If you’re looking to buy a franchise, you might want to consider researching the franchise industry. There are many franchise opportunities that are touted as recession-resistant. I guess that even in a down turn seniors still need care and hair still grows...



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posted by Guidant Financial Group @ 12:01 AM 0 comments
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