What does it take to start your own business? How can financing help you on your journey? And how can you find your opportunity and achieve your business dreams?
In an episode of the Franchise Empire Show, host Tariq Johnson sits down with Jeremy Ames, co-founder of Guidant Financial, to explore questions like these (and more), as well as the company’s history and effective strategies for building successful businesses or franchise brands. During the interview, Ames shares his insights on utilizing a Rollovers for Business Startups (ROBS) strategy, a savvy method allowing entrepreneurs to finance their ventures using their 401(k) without incurring early withdrawal penalties.
This discussion not only covers the practical steps involved in implementing a ROBS strategy but also highlights the broader implications and benefits of this approach for funding a business. Ames’ expertise offers valuable lessons on entrepreneurship and financial management, making this episode a must-listen for aspiring and established business owners alike.
So what secret strategies did Ames give? We’ve broken it down for you below.
1. People Buy Financing Because They’re Passionate About Their Business.
According to Ames, “It doesn’t matter which financing you use; nobody’s going to buy financing because they love financing. They’re going to buy it because they are trying to buy a business and want a different outcome for their life – the freedom and autonomy to create something of their own.”
Ames goes on to state that he doesn’t want people to miss out on the opportunity and personal growth that comes from taking ownership of your life – which he believes is what you’re doing when you own your own business.
For example, when you’re in a new situation and don’t know what you’re doing – as with starting a new business – you grow and become confident. It’s safe to say Ames knows what he’s talking about as he’s the CEO of Guidant Financial, one of the largest names and providers of funding for franchise buyers, franchisees, and small businesses. In fact, Guidant has provided over $5 billion in funding to over 30,000 entrepreneurs since 2003.
2. Building a Business Takes Time. Be Patient.
“Rome wasn’t built in a day – and building your empire doesn’t happen overnight either,” says Johnson. That’s definitely true for Guidant – a company that was started with a laptop and $10,000.
Ames agrees, adding that no one could have predicted that Guidant would be where it is today, serving over 30,000 customers across the U.S. Before Guidant, however, Ames started a real estate company that specialized in helping people get into investment real estate. In the process of running that business, Ames met his longtime business partner, David Nilssen, and at the time, Nilssen was doing land development, so they teamed up on a few projects. One of these projects was dividing a plot of land to put some homes on. The duo needed to fundraise, and it was suggested to them to use their self-directed retirement accounts to do it. The two saw an opportunity to take a leap.
3. Find Your Opportunity.
Opportunities don’t always jump out at you, or just present themselves, as they did for Nilssen and Ames. Sometimes you have to dig a little deeper to find what you’re looking for. The two found there were a lot of people who wanted to invest in a business that they could actively be a part of, like a franchise, for example. Hearing more about using retirement funds, the two hired an attorney familiar with ERISA and discovered that there was a way for people to use their retirement funds to invest in companies.
“We offered him a job and recruited this attorney to come on and help us and we focused on these small business customers who needed financing. … At the end of the day, it doesn’t matter what financing you use – nobody is going to buy financing because they love it. They’re going to buy it because they want to buy a business and want a different outcome for their life – with freedom and autonomy to create some financial flexibility for their future,” Ames says. “What we sell is a tool to help people find more ways to do that.”
Not sure what opportunity you’re looking for? Here’s How to Choose What Business to Start in 7 Steps.
4. Consider ROBS.
In the past, ROBS, or Rollovers for Business Startups, wasn’t widely known, and not widely structured in a way that was accessible.
Ames says that ROBS allows people to invest in a small business and retain their retirement funds in a retirement account, so essentially, the retirement account is becoming a part owner in the business. What does that allow you to do? He notes that you can take your retirement funds out of your retirement account, and if you meet certain requirements, you can keep those as retirement assets. “It’s kind of like becoming your own angel investor,” Ames says. “Your retirement plan becomes an investor, and so when you build up the company and sell it at some point, those funds for the ownership of that retirement plan go back into the retirement plan, and they’re still tax-free based on what type of retirement account you have.“
“It’s interesting to me how many individuals don’t even know that this is a thing or that or that it exists. My background is that I had my investment licenses for 15 years, and even as a financial advisor, we weren’t taught about ROBS.“
Overall, Ames notes that Guidant is trying to get the word out so more people can use ROBS to their advantage. He feels that many people miss out on business ownership because of lack of financing.
Ready to learn more about Rollovers for Business Startups (ROBS)? Get started here.
5. A Business Can Help You Build Your Wealth – and Comes with Challenges.
When it comes to building your wealth, Ames feels a business is key. “What I like to share with people is the power of business; you only have so much time and a business is the ultimate leverage, whether that’s using capital, people, or resources.“
The journey for Ames and others has been full of ups – but downs, too.
Watching other people build businesses can be intimidating, as there’s no blueprint. Many entrepreneurs experience failures, but the important thing is that they try again.
For Guidant and Ames, the 2008-2009 recession was a struggle. He adds, “When things change overnight, it took many months for us to realize the reality that things weren’t just going to magically get better where the economy and stock market are back to functioning at healthy levels.“
They made some tough decisions, as many entrepreneurs have to do – even talking to attorneys about bankruptcy and cash flow issues. The mental pressure was tough, but entrepreneurs like Ames don’t give up. “You take it day by day,” he says. “It’s totally a grind.”
Thanks to Navy SEAL fit training, Ames was able to just “do one more rep” and keep going. He and a few other entrepreneur friends went to a training course where they learned a lot about themselves.
He also joined an entrepreneur’s club, where he could speak with other business owners about the ups and downs – and how to get through them. “Having a group of people I could meet with regularly and talk to in a safe environment was huge.” He didn’t want to upset his family at home, so he found this group to be immensely helpful.
Fitness is another conduit to build up mental toughness. As a runner, Ames has participated in Spartan races over the years, even though he “hates running.”
So why does he do it? To push himself. The same reason he did the SEAL training and plays pick-up basketball today. He says he’s not the most talented or smartest, but he outworks everyone.
Fitness is much like business in that way. If you’re not taking care of your body, you’re doing a disservice to your relationship, your job, or your business. The consistency of doing hard things is what success in business looks like, according to Ames.
Looking for more entrepreneurial tips from Jeremy Ames? Check out 7 Tips for Aspiring Entrepreneurs.
6. Fall in Love with the Problem – Not the Solution.
Ames is a believer in the idea of falling in love with the problem, and not the solution, because the solutions don’t always work. But if you fall in love with the problem, you can figure out the next solution and keep trying.
When you start putting that mentality into place, you can start looking at your job differently.
An example is a work budget. When you start a small business, your time can be sucked up quickly. So, choose to prioritize what’s important and develop a system for how you carve out your time to work on solutions.
“The amazing thing is when I put a constraint on the rest of the time, I figure out how to get what’s most important done in that timeframe,” Ames says.
As for how to do this, Ames notes time-blocking is a helpful strategy. Focus sessions are also critical, and he likes to book a couple of hours each morning. He also uses a scorecard for tracking.
Learn how to sidestep the seven most common business pitfalls and set your entrepreneurial journey up for success with Jeremy Ames here.
7. Find a Partner – and Empower Your Employees.
Nilssen and Ames have been working together for years and have naturally different skillsets that have led them to success.
Over the years, the duo has tried many different types of arrangements, from co-CEOs to CEOs and presidents and more. He notes their complementary skill sets, values, and aligned goals.
They learned early on that they both need ownership on things and that it didn’t work to collaborate on everything.
While Nilssen is now running a spin-off company, Ames continues with Guidant, but they both learned a lot from each other during their time running Guidant together – and they both pushed each other to be better and grow in new ways that fulfill a sense of purpose.
They also have empowered the people around them to do their best and to focus on their best skills. “You have to give people accountability though so they can own it,” Ames adds regarding his managerial style. “Leaders have to be clear on what’s important and why so they can delegate appropriately.”
The Mission: Helping People Succeed in Business
As you can see, Ames offers valuable advice for entrepreneurs and business owners, from embracing patience to leveraging your business to build lasting wealth. His mission with Guidant Financial is clear: to help more people achieve success in small business. Are you ready to take the leap from employee to entrepreneur? See Jeremy’s 4 Things You Can Do NOW to Create a Future as an Entrepreneur.
Ready for ROBS financing to start your business? Pre-qualify now.
