Dan Knak of R&B Contract Manufacturing - Eyota, MN

Three years ago, when the opportunity arose to take over R & B Manufacturing - a business specializing in custom circuit board assemblies and control panel manufacturing - Dan Knak decided to take it.

Given his professional background, Dan knew the technical side of the business venture wouldn't be a problem. Funding, on the other hand, that was a different story.

How was CatchFire Funding able to help initially?

"I understood the manufacturing business and some of those things; but wasn't really sure how to put the funding together to meet all the requirements and government regulations - [CatchFire] helped me with all of that," said Knak.

How about ongoing support?

"They were available for questions and for counseling and have continued to be a resource for us as we've gone forward; helping us with taxes and other compliance issues. They've been a great help and continue to be."

Since launching his business, Knak has recommended CatchFire to colleagues looking to start their own businesses.

"I think, looking back on it, it had been a great help and it was comforting to have someone who kinda knew the ropes and could help navigate the things in the areas where [I] didn't really have experience," he said.

Have the risk and sacrifice been worth it?

Although R & B had been in business for nearly 20 years, Knak took over in the midst of the recession and had to get creative with marketing and business development. "In the past two-and-a-half years, despite a rather tough economy, we've been able to expand our customer base and we've also been able to grow our business within our existing customers - we continue to look for new opportunities and new ways to apply our talents to help our customers."

Any advice for someone in your shoes?

"I think if you're looking at using CatchFire or trying to decide if you should 'take the plunge' so to speak... you really have to do your homework to make sure the opportunity you're looking at meets your expectations and requirements - that you've done the research, that you've put yourself in a position for success. I think the CatchFire people can help you finance the business and will do a great job on that end but, in the end, it's really up to you to make it successful so you've got to be comfortable and confident in yourself that you can pull it off."

Have electrical manufacturing needs? Check out what they're doing in Eyota, MN!
R&B Contract Manufacturing

David Coleman of USA Auto Glass of Naples - Naples, FL

When David Coleman and his family decided to relocate to southwest Florida at the end of 2011, they knew just one thing for sure: they wanted to buy a business.

It wasn't long before they set their sights on USA Auto Glass of Naples - a three-year-old business up for sale. The next decision would be to figure out the financing they would need.

"Because of the market conditions when we were looking to purchase the business - i.e. with banks being very hesitant and reluctant to loan even to those with the best of credit - we started looking for some alternative means to finance the purchase of the business," Coleman explained.

Why did you decide to use your 401(k) funds?

After researching two or three companies, Coleman liked the idea of CatchFire Funding and what it had to offer. He had numerous conversations with CatchFire where his many questions were answered very professionally.

Ultimately, there were three reasons Coleman decided to use his retirement money to fund the business:

1. At the time, it was very difficult to secure outside funding.

2. CatchFire Funding was proactive in showing the benefits and advantages to using a 401(k).

3. He realized that: "I would rather have that money under my control and have that money working for me rather than have somebody else, or rely on the market conditions to dictate whether it grows or whether I lose it."

How would you describe working with CatchFire Funding?

Even once all decisions had been made - to purchase a business, to utilize 401(k) funding, and to use CatchFire, Coleman still had a lot of questions and things he didn't understand. On a number of occasions the CatchFire staff was able to put him at ease.

"They handled everything from soup to nuts. It was a very, very seamless and very painless to me," said Coleman.

How has the increased cash flow helped your business?

"When you use a 401(k) to purchase a business, it alleviates a lot of strain on the business just because that's one less payment that you have to make, and anybody who thinks that cash flow isn't important in a small business really should rethink that because cash flow is everything," said Coleman. "And by not having that monthly payment... and not having that dagger hanging over your head, it just makes it much easier to concentrate on growing your business or working on the business to make sure that the business becomes self-sustaining."

Any advice for someone in your shoes?

"There is certainly nothing more frightening than purchasing a business because now you're responsible for your own self, and in many cases, because of employees - you're responsible for those employees as well. But, by the same token, if you're one of those employees, you're going to be stuck in that hamster wheel for the rest of your life."

He adds:

"That initial work transforms itself further down the road into a lifestyle that most people can't imagine. It just makes it so much easier once you attain that level - it becomes enjoyable again to go to work."

Have the need for expert auto glass repair in southwest Florida? Give David Coleman a call in Naples! USA Auto Glass

Joseph Davern of Davern's Tavern & Lounge - Justice, IL

Entrepreneurialism must be in the Davern family blood. Back in the 80's, Joseph and his family opened and sustained a couple of different businesses. After that Joseph went his own way, but eventually the ownership bug came biting back. He opened Davern's Tavern & Lounge in March of 2012 and has been doing things his way ever since.

"Business is right where I thought it would be at this time," said Davern.

How did you deal with the naysayers?

Soon after Joseph discovered 401(k) funding, he dealt with serious skepticism from family members, namely his brother who was a VP for a large buying company.

"I was looking for a way to use all of the money I'd been saving that was mine, through a 401(k), without paying big penalties," said Davern. "And my brother was convinced that the transaction was impossible."

After a few more talks with CatchFire Funding, his brother came around. "After talking [with CatchFire] and seeing how they went about this, he was actually on board. He said, 'Yeah, it's a good thing.' "

How was the experience working with CatchFire Funding?"

"It was very easy to work with CatchFire - everything was basically done over the phone... they made it easy for two people who had never met."

Davern adds:

"It's nice to be able to call somebody at any time of the day - I mean, through this whole process they answered the phone no matter what time it was here or there. It was always very easy to talk to Bill, and you would think that, as the president of a company - what would his advantage be? He is definitely going to have a longtime customer in me."

What ultimately drove you to "take the plunge"?

"I had to get out of what I was doing; I had to make this choice now," Davern shares. "It's nice to take all of your money, all of your investment, everything that you've saved and put into a business that you want - I've wanted to do this for 10 years. The location was open and available. I was able to make this happen with half of what I thought I would need - I thought I would need to wait another 10 years to build up the cash flow to do this."

Any advice for someone in your shoes?"

"The one thing I would tell everyone, with the economy the way it is... all of the money in the 401K - I hate the thought that anyone else gets a piece of my money."

By investing in his business through his self-directed 401k, Davern was not required to pay current taxes or penalties in order to fund his business. Davern also did not need to take out a business loan, so he did not have to pay interest to anyone.

Davern adds, "I haven't found any drawbacks at all through this whole system... I'm very happy with [CatchFire] and, well... you can't go wrong."

If you're ever in Justice, IL (right outside of Chicago) stop by Davern's Tavern & Lounge for a couple of brews and a game of horseshoes! Davern's Tavern

Roderick Sharp of System 4 Commercial Cleaning Franchise - Chicago, IL

Roderick Sharp and his business partner Rita Sally have been in business since September of 2012. He says the business is smooth; it's still a learning process but they are getting more accounts each month and they see 2013 as a year to really grow their business.

Until they spoke with CatchFire Funding, they were not familiar with the concept of using 401(k) money to start a business.

What solidified your decision to go into business and use your 401(k)?

"When we started the process, we spent a lot of time really doing some soul searching to make sure that we wanted to make the jump into starting our own business and also, we talked a lot about whether or not it was worth it to take our retirement funds to do this," said Sharp.

"But after talking it through with CatchFire Funding... with their expertise and ability to answer all of our questions, we were able to come to the decision that this was the right thing to do for us."

What do you feel are the advantages to using your 401(k)?

According to sharp, "We felt that the advantage of using our 401(k) to start the business allowed us not to incur unnecessary debt which, a lot of the time, is a big hindrance in your business being successful."<>/p>

How was your experience working with CatchFire Funding?"

"Andrew was so supportive; he held our hand and guided us through the process. He made us feel like we had a partner that we could call at any time with various questions, no matter how silly we thought they were. It was a pleasure working with Andrew and the whole team at CatchFire Funding," said Sharp.

Any advice fore others in your shoes?

"If you're going to use your 401(k) retirement funds to start a business, it's really important to work with professionals like CatchFire Funding to guide you through the process."

Sharp adds:

"I would advise anyone who is considering starting their own business or franchise - to really take a strong look at 401(k) retirement funding to start your business in lieu of business loans or other things that put you in a negative cash flow position even before you start."

If you know any businesses in the Chicago area that could use some cleaning, send 'em Roderick and Rita's way! System4 of NW Chicago

Scott Fessenden of Wahoo's Fish Tacos Franchise - Huntington Beach, CA

Scott Fessenden and his business partner chose well. They opened a Wahoo's Fish Tacos franchise in Huntington Beach, CA, which obviously lends itself very well to the locale. After being open for seven months they have turned a profit each month and are already among the top franchise locations in the country.

"It's been a terrific experience so far and I'm glad that we were able to make this happen through CatchFire Funding," said Fessenden.

How did CatchFire help them get there?

When Scott Fessenden approached CatchFire Funding, he received two surprises:

1) The ease of the 401(k) funding process - "It went much smoother than I expected; it was a turnkey operation as far as we were concerned," he said.

2) The fact that CatchFire was familiar with the Wahoo's brand and could help him navigate the discovery process - "They were very familiar with the franchise we went with; that was very helpful and helped our confidence too because they knew the business and, in fact, had been to Wahoo's restaurants before and really enjoyed them."

What do Scott and his partner see as the upside to using retirement funds?

Fessenden had this to say: "It's a little bit scary at first, but when you realize that all that money is going to be taxable and you may not really have as much in there as you think that you do... by starting your own business you can actually enhance your retirement savings."

And this...

"I feel so much better about having that money invested in my own business that I'm in control of, that I'm confident that I can build my business and grow it every day and not be relying on the market... the whims of the market."

How would they describe the process with CatchFire?

"[CatchFire] will walk you through all the steps. It's not as complicated or onerous as you might think. They're extremely helpful. You're gonna have a lot of questions, a lot of concerns, and they can address those for you. They're there for you... they have been there consistently for us. They even worked directly with our CPA!"

Any advice for someone in your shoes?

According to Fessenden, "The whole experience with CatchFire was great - and I would encourage anybody who is considering going into business for themselves, to give CatchFire Funding a call and you won't be disappointed, I promise you."

If you've never experienced the famous Wahoo's fish taco for yourself, it's time to catch up!
Find a Wahoo's

Dan Murphy of CertaPro Painting Franchise – Syracuse, NY

Dan Murphy had quite a few things figured out – he knew he wanted to become a small business owner; he knew he wanted to go with the CertaPro franchise; and he knew he wanted to stay in Syracuse, NY. The only piece of the picture NOT in place was the funding…

Who recommended that you speak with CatchFire Funding?

“I didn’t know any of the potential vendors that could provide this kind of 401(k) rollover service support, so CertaPro referred me to two or three various service providers but after speaking to Bill Seagraves I just felt comfortable from the first conversation that it was going to be a good fit for me,” said Murphy.

You have a background in banking; how did that affect your decision?

“I actually came from financial services industry/banking with 30 years experience so I think I have a pretty good understanding of when somebody is credible and certainly has a strong grasp on the services they’re providing and that’s the impression I got from my very first conversation with Bill.”

Murphy adds:
“CatchFire does a very good job of explaining the basics; they keep it very simple and straightforward so you don’t really have to have any kind of background in banking or financial services to be able to follow what the intent of the rollover process is.”

Many people fear that the process will be complicated. What was your take?

“The process really wasn’t all that complicated from my stand point; I provided a little bit of information, they did 95 percent of the legwork through completion.”

Any advice for someone in your shoes?

“Once you make your mind up to get off the fence, and that [your chosen venture] is, in fact, going to be a sound business opportunity, then CatchFire Funding just provides the vehicle for making that happen.”

If you’re near Syracuse, New York and are in need of professional paint services, give Dan Murphy of CertaPro Painting a ring! CertaPro of Syracuse

Gerry Weir – Alpharetta, GA

Many people are under the misconception that 401(k) funding is all or nothing – that you must use 100 percent of the funds if you decide to use it at all. Not so.

Gerry Weir is a perfect example. He has used portions of his 401(k) to partially fund multiple businesses.

What would you tell people who are hesitant to use their retirement money?

“The wrong way to look at this is that you’re taking money from your 401(k) – you’re not taking money from your 401(k), you’re not cashing in or paying any fees or penalties or taxes on the money…what you’re doing is taking your 401(k) and making it more productive, said Weir.”

How did you find CatchFire Funding and what did you like about them?

“The way I found CatchFire Funding was through the recommendation of a franchise broker, who referred me to several different organizations; I reached out to each one and talked to them at length about their service and just found CatchFire to be probably the easiest, most direct to deal with and it’s a very simple process that they had so I decided to go with CatchFire Funding over some of the competitors.”

How would you describe the 401(k) funding process?

“The process to get started with CatchFire was simple; it was very straightforward. I had an initial conversation with Bill; he went through the exact details with me about the exact product they were offering: the services, what to expect, when to expect things; so I didn’t really have any surprises, I didn’t have any glitches, it was a very smooth process.”

Any advice for someone in your shoes?

“I would highly recommend using at least some portion of 401(k) funding to get a business going or to buy a business today – that has been very positive for me and the businesses I’ve started using this process.”

Mother was right about one thing. Getting a good education is important. In this case, it's important you receive a thorough education about self-directed 401k's before you decide whether this type of funding is right for you. 

Funding your business with a self-directed 401k requires your plan be set up correctly. That you move your money correctly. And, that you manage the plan correctly for you and your employees as you are managing the growth of your business.

Many times people tell us they have talked with a number of self-directed 401k suppliers. And they are still confused about the details of how this all works.

We offer everyone we talk with the opportunity to have a comprehensive presentation on the requirements of a self-directed 401k plan. We cover the proper process for setting up and maintaining a plan and the appropriate use of a plan for the business owners and their employees. For more than five years, we've given this presentation to hundreds of clients, spouses, client's accountants and legal counsels.

We can't count how many times people have told us our presentation was what ...finally... made self-directed 401k programs easy to understand.

We encourage everyone to go through our presentation, whether you decide to work with us or not. The presentation is free. There's no hard sell. (We're just not that kind of company.) We take as much time as you need to thoroughly answer your questions.

The only cost to you is the time you spend to get a good education.

Mother would be proud.

CatchFire Funding is now the Denver office for Diamond Financial.

Diamond Financial is the largest SBA loan brokerage in the country. When you work with Diamond, you have access to more loans from more banks than with anyone else offering SBA loans.

Diamond has a proprietary, thorough process to help you present yourself in the best light to a wide array of bankers. Many banks so respect Diamond’s process that they assign their best loan officers to work with Diamond.

Better loan officers get you better loans. You spend less time looking for a banker who understands your business. You get better rates. You frequently can get your loan in less time than when you work with other loan brokerages.

At CatchFire Funding, we continue to offer self-directed 401k plans to help you fund your business. As a Diamond Financial affiliate, we are pleased to bring you even more options for funding your franchise or small business.

Just tell us what you need. Whether it’s a down payment, a SBA loan, equipment financing or other business financing needs, we can help.

Congratulations, Amy!

As many of our clients know, Amy Holland is a true volunteer for many organizations in our local area. She is especially active in our local Rotary chapter. Amy has helped to raise money for water projects in Africa, sponsored Iraqi children to come to the United States to learn about our country, helped local firefighters, worked on sister city projects, organized fundraisers, represented community input for the school district and performed officer roles for Rotary. All while caring for her family and holding down a job.

Last night, Amy was honored by her local Rotary chapter as Rotarian of the Year. We are so proud of Amy and want to offer her our congratulations. If you happen to speak with Amy over the phone, please do congratulate her on the recognition for all she does for her community and people around the world.

Thanks, Amy!  We love all you do!