Many Americans dream of owning a business but avoid taking an entrepreneurial leap because they lack the finances to do so. Typical business 'start ups' or purchases require a fair amount of liquid cash or a high net worth. In addition, some franchisors will not even deal with applicants who have less than one hundred thousand dollars in cash. This prevents many potential entrepreneurs from becoming their own boss. With this problem in mind, Guidant Financial Group created the Audeo™ to help individual investors access their retirement funds to invest in a franchise or other business.

Typically, if an IRA owns more than 50% of a business, the business would trigger a prohibited transaction when compensating the IRA owner. Even if the IRA owns less than 50% of the business, compensation to the IRA owner can trigger a prohibited transaction if a combination of the IRA owner, the IRA, and any other disqualified persons own 50% of more of the business. Using Guidant’s Audeo Program, an individual investor can and must be an employee/manager of the business. As an employee of the business, the individual is then able to rollover their existing IRA or 401k into a new 401k pension plan which allows them to invest in the business. The business then has the funds to purchase a franchise, an existing business, or assets to start an entirely new business. This type of investing has opened the entrepreneurial door for many individual investors.

Joe Wishcamper, General Counsel for Guidant Financial Group indicates: “The majority of people I work with have left good corporate jobs on their own or because of downsizing. They typically are overly qualified for the jobs available. By utilizing the money they have put away in their retirement accounts during the years at their corporate jobs, they are able to give themselves another option. They have the ability to be their own boss instead of pursuing lower paying jobs they are too qualified to occupy.”

Through the Audeo™, Guidant Financial Group has already helped many investors become their own boss. Our clients have invested in businesses ranging from structured franchises such as Mr. Handyman and 7-11 to previously existing businesses like an air charter service.

The sky is truly the limit. If you have IRA or 401k funds and would like to purchase a business, you may want to consider Guidant's Audeo™ Program.