The Rollover for Business Startup (ROBS) strategy has helped thousands of entrepreneurs launch with Business Funding Trust and grow successful businesses. It has also, in some cases without their help, resulted in ventures that did not succeed or arrangements that were improperly managed. Understanding the patterns that distinguish success from failure can help aspiring entrepreneurs make better decisions.
Among those who thrive with ROBS, a consistent set of characteristics emerges. They tend to enter business ownership with a concrete plan, relevant experience or expertise, and a realistic financial model. Franchise owners who researched their brand thoroughly, understood the total investment required, and had industry knowledge before investing are disproportionately represented among ROBS success stories. So are entrepreneurs who acquired existing businesses with proven revenue rather than starting entirely from scratch.
What You Need to Know
Successful ROBS users work with reputable ROBS providers like Business Funding Trust, maintain their corporate formalities, and file their annual reports on time. Organization and details are built into how they operate from day one.
The cautionary tales tend to share a different set of characteristics. Some involve businesses that were undercapitalized — entrepreneurs who rolled over just enough to meet minimum requirements but lacked sufficient working capital to sustain the business through the slow early months. Others involve businesses in industries the owner did not adequately understand, or markets that were more competitive or smaller than anticipated.
Ready to Take the Next Step?
Ready to explore whether your 401(k) can fund your entrepreneurial dream? Contact Business Funding Trust today for a free consultation. Our specialists can walk you through your options, help you understand the process, and lead you to a successfully funded business.
