Monday, April 29, 2013

401 (k) Plan

Meaning O Explanation: A 401 (k) is a tax-deferred

savings account that employers are scheduled for employees.

This vehicle savings can be used for almost any type of investment.

The 401 (k) will remain intact even if the employee leaves the company. If

employees left to start a new business, the 401 (k) can

used to invest in, or even finance, new venture.Appropriate For: Any company in any stage of development.

Due to employer pension fund companies in their own

conservation, they just need to make sure that the deal is worth

risk.

Supply: This option is for entrepreneurs who have

breaks from corporate America, with (k) plan their 401. Beyond

It has a 401 (k), an additional supply is affected by how

Many tax-deferred retirement savings of their employer

want to put risk.Best Use: Financing start-up. When start-up companies

financed with equity from outside sources, the most

expensive method of financing because the company is worth to

bit. A round of seed financing cost of 30 percent of

equity. Although the 401 (k) funding forced to surrender company

equity, allowed the founder of the company and, as such,

not really lost.Cost:Costs can run higher because some professional

required to engineer the transaction. However, 401 (k) financing

It is not worth the founder of any equity in their business.Ease The acquisition: Average challenges. Have

Some legal and accounting issues to solve for

Strategies for working properly.Funds Average Available: $ 100,000 and greater.From Where Money? Bang-Fire Solutions for Finance

Your Small Business, by Art Beroff and Dwayne Moyers. (C)

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