You can create your own job.
Small business ownership jumps in times of economic hardship as workers like you decide that instead of putting their career in the hands of others, they’re ready to forge their own path. Small business ownership puts you in control of your work – you can do the work you want to do, the work you’re passionate about, and make your own choices.
Guidant Financial has helped over 20,000 small businesses launch, so we know how this works. We’re here to help – so let’s review what you can do today, even during the quarantine, to create your own job.
Deciding What Small Business is Right for You
When asked why they started their own business, the two most popular answers from small business owners were, “I was ready to be my own boss” and “I wanted to pursue my passion.” Even if the opportunity to start your own business was created by a layoff or other effect of COVID-19, these two motivations are essential in small business ownership – especially in deciding what business you want to go into.
There’s no small business plan that works for everyone. Small business ownership is flexible based on your unique situation – but here are a few of the most common paths to small business ownership we see at Guidant.
Start from Scratch
If you want to have full control over your small business and build from the ground-up, you can start from scratch. This is a great option if you want to start small and build up – you could start working from your home or a coworking space. Think of a CPA firm, bookkeeping services, or consulting. You could also start a retail or food business from scratch if you want to break into a neighborhood, build your reputation, and prove your business is better than your competition.
Buy an Existing Business
If you want to have control over your business but don’t want to start it from the ground up, buying a business could be a great option. The outbreak will create a significant opportunity to purchase businesses at a low cost. Seller financing is a popular method of easing the cost of buying a business.
Start a Franchise
If you’re not as interested in starting from nothing, opening a franchise location is an excellent option. While you pay a franchise fee to get started, in exchange, you don’t have to handle your own marketing, training, or branding. Franchises come with a proven business model and brand recognition, making the work you need to do to get started much lighter.
Buy a Franchise
Much like buying an existing independent business, the coming months may likely bring significant opportunity to purchase established franchise locations. Without having to go through the hassle of finding real estate and building out a location, buying an established franchise is a quick and relatively simple path to small business ownership.
- How to Start a Business With No Ideas
- Start-up vs. Franchise – Which is Right for You?
- Buying Independent vs. Buying a Franchise
- How to Buy an Existing Small Business
- Where to Find Small Businesses for Sale
Understand Your Funding Options
If you’re not sure which path to small business ownership is right for you or if you’ve settled on one but don’t know what to do next, it can be beneficial to understand your funding options. A thorough understanding of your financial situation and what financing you can obtain helps you decide between starting an independent business or a franchise; opening new or buying established; or what your first official step should be.
The coronavirus outbreak has created an interesting landscape for small business financing, but it’s by no means impossible to get started creating your own job now. COVID-19 has made certain aspects of business funding better now than in the past. Because funding can take a few weeks or a few months depending on the method, you can get started today – and be ready by the time the quarantine is over, and customers are returning to their lives.
Tailored Funding Options for You
SBA loans are guaranteed by the Small Business Administration (SBA), which encourages banks to approve SBA loans. SBA loans also often have attractive rates for small business or franchise owners.
As of April 2020, you can get six months of deferred payments if your business is funded through the SBA by September 27, 2020. This means you won’t have to make any payments on your SBA loan for six months. Banks are busy, so we recommend you start the SBA loan process immediately to get funded by the 9/27 deadline. Guidant can help you with your SBA loan application – contact us now to get started.
Learn more with our Complete Guide to SBA Loans.
Rollovers for Business Start-ups (ROBS)
ROBS is a small business funding method that lets you use the money in your rollable retirement fund (e.g., 401(k) or IRA) without early withdrawal or tax penalties. Right now, as the stock market moves back into an upswing, it can be a great time to leverage your own money and invest in yourself. Guidant is the largest ROBS provider in the industry – talk to us today to get your new business started cash-rich and debt-free.
Learn more with our Complete Guide to Rollovers for Business Start-ups.
If you’re interested in an SBA loan but are concerned about the down payment, you can use ROBS to cover the down payment – and increase your funding ability. Learn more about using ROBS as your SBA loan down payment.
Also sometimes referred to as “stock loans” or “securities-based lending,” portfolio loans work like a revolving line of credit. These loans let you finance your business or franchise by borrowing (and repaying) at will. You don’t have to sell your stocks – by leveraging your assets rather than liquidating them; you can gain access to fast funding with low-interest rates.
Learn more: What is a Portfolio Loan for Small Business?
Instead of risking your personal assets (like your house or car) to secure a loan, unsecured lenders look at your creditworthiness to determine eligibility. This means you’re a good candidate if you have a high credit score and a solid credit history. To be eligible, you need a minimum 690 credit score, credit usage under 50 percent, and a clean credit report with minimal inquiries. Because there’s no collateral requirement, the approval process is quick and straightforward, making unsecured loans a great option for business owners who need funding quickly.
Learn more on our Unsecured Loans page.
Don’t Wait – This Won’t Last Forever
No matter what type of business or funding you decide on, what’s really important is that you take advantage of the opportunity that big change and challenge creates. You don’t have to jump back into Corporate America or retire before you’re ready. Create the job you want – starting now.
Guidant is here to help. Contact us online or call us at 888-472-4455 to talk with one of our small business funding experts and learn more about what options are the best fit for you.