Thursday, May 15, 2008

Most People Buying Businesses Have Management or Executive Backgrounds

In a survey of clients using Guidant Financial Group’s 401(k) small business financing solution, 60 percent of new business owners funding their purchase with IRA/401(k) monies come from management or executive backgrounds. The same Guidant survey also indicated that the most popular businesses being launched are within the business services and consulting industry (13%). This was followed by retail (12.7%) and home services (11.7%).

These statistics could indicate that the same drive and ambition that enables employees to reach management-level positions are the same characteristics necessary for successfully launching a small business. It may also be that these same personality traits contribute to a willingness to embrace alternative financing means – such as using IRA or 401(k) funds to purchase a business.

Read the full Guidant news release.

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