Fit Small Business: Get Your Business Into Shape! › Forums › Small Business Finance Forum › Which option is best for a new biz startup, investing in an established company? › Reply To: Which option is best for a new biz startup, investing in an established company?
There are many options that you can learn more about in our article on startup business loans. Generally, if you have at least $50K in an eligible retirement account (401k, IRA, etc..), then we suggest using a rollover for business startups (ROBS). This will only work if the money is going into a business you plan on working at full time and that is a C-Corporation, however.
You may also want to consider getting an SBA loan, or using your savings combined with any money you can get from friends and family. Keep in mind, however, that $400K is a lot of money to use as a long term investment if you don’t have the funds. Any method you choose, unless the ROBS works or you have the money lying around, will come with a hefty price tag.