How to Fund Your Midlife Business Venture

After a couple decades in the workforce – with no interest in slowing down – you may be ready to leave your corporate job and launch a new career. You’ve paid your dues, you’ve learned the ropes and now you’re ready to launch your midlife business venture. Welcome to your new career!

While you certainly have much more life experience – and likely more savings – than a young upstart, you also have more to lose financially. Protecting your finances is a top priority, especially as you get older.

It’s important that while you launch your new midlife business venture you continue to save for retirement. You should know how much you (and your family) require to live, how much you need to bring in to become profitable and how much you can invest before taking on debt. Talking to a financial consultant, and any key decision makers like your spouse, can help you plan for your future.

Here are some popular options for funding your midlife business venture:

Rollovers as Business Start-ups (ROBS)

At this point in your life, you’ve likely saved tens of thousands through your (former) employer’s 401(k). While that money is important for your retirement, you’re thinking about how you can leverage your time and money right now to create an even better life for yourself. With ROBS funding, you can use your hard-earned retirement funds to open a business or buy a franchise.

To use ROBS funding, you’ll want to work with an experienced Third-Party Administrator (TPA) to ensure all necessary steps are followed to the letter of the law. Certain parameters must be met (such as a setting up a Corporation), and having your TPA in place should be the very first call you make before doing anything financially for your new business or franchise. Compliance is key to keep the Rollover above-board with the IRS.

SBA Loans

The U.S. Small Business Association connects small business owners with the funding they need to become successful. SBA offers a free Lender Match program that connects small business owners like you with approved lenders. SBA also maintains a Small Business Investment Companies network to connect owners with private investors. The SBA 7(a) loan is designed to help small businesses gain enough capital to grow their venture quickly.

Unsecured Lines of Credit

Small business Unsecured Lines of Credit offer you access to funding that can help you cover business expenses. It is a useful resource for gaining short-term access to funding. This type of funding is more similar to a credit card than a loan. You use the line of credit to handle expenses as they arise. The credit line can range from $25,000 to $100,000, with pre-approval in as little as 24 hours and funding within three to five weeks.

At Tenet Financial Group, we specialize in helping small business owners obtain the funding they need to launch their venture. Contact our funding consultants today to get started.