Entrepreneurs can use retirement funds for franchise ventures

Posted on October 22, 2010 by Stacey Fousse

People interested in opening up their own franchise may find that the dream is more within their grasp than ever before.

Business expert David Nilssen, writing for NuWire, says that entrepreneurs can take advantage of a program called Rollover as Business Startups. The program, better known as ROBS, will allow those interested the opportunity to use their IRAs or 401(k) funds to start a franchise "without taking a taxable distribution or getting a loan."

"If we look at the numbers since 2005, industry experts estimate more than 10,000 small business startups have been capitalized in this manner," wrote Nilssen. "Those business owners are now reaping the rewards of much less overhead and a much greater chance for success." In these challenging economic times, it appears to be the rule rather than the exception that lender capital is virtually non-existent for the average small business entrepreneur

According to his LinkedIn profile, Nilssen is the founder of Guidant Financial Group, which was ranked as an Inc500 company by Inc. Magazine. He was also a finalist for Ernst & Young's Entrepreneur of the Year award in 2009.