Worcester Business Journal

wbjournal.com | June 12, 2023 | Worcester Business Journal 19 By Ryan Kittredge Ryan Kittredge is a financial advisor and president of ClearPath Financial Partners in Northborough. Reach him at ryan@ clearpath-fp.com. With higher interest rates and tightening credit conditions, you may need to get cre- ative on how to tap liquidity for a business investment or real estate acquisition. 1) Savings cushion. Consider funds on hand. Cash equivalents such as savings or money markets may provide liquidity. 2) Business line of credit. A revolving line of credit allows you to borrow funds up to a pre-determined limit and only pay interest on the amount you draw against it. 3) Home equity line of credit. HELOCs allow you access to the equity in your home or other property. It is flexible and carries lower interest rates than other credit. Some loans offer competitive introductory rates, so shop around. 4) Retirement plan loan. Many employ- er-sponsored retirement plans like a 401(k) allow participants to borrow against their account balance, with a typical limit of up to 50% of the balance up to $50,000. Consid- er the specific terms and have a plan to pay back to avoid potential tax and penalties. 5) Cash value life insurance. Permanent life insurance policies you've owned for sev- eral years allow you to withdraw accumulat- ed dividends or take a loan against them. 6) Securities-based lines of credit. If you have an investment portfolio but don't want to liquidate holdings to generate cash, you can establish a line of credit against the portfolio value. The composition and risk of the portfolio determine borrowing limits. 7) Family loan. A parent or other family member in a solid financial position may be willing to make a loan. Be cautious about the potential impact to the relationship and be clear on the terms. Formalize an agree- ment in writing and be aware of minimum Internal Revenue Service interest rates to have the loan not deemed a gift. 8) SBA loans. U.S. Small Business Admin- istration offers loans designed to provide affordable financing, such as those with lon- ger repayment terms and competitive rates. 9) Bridge loans. For short-term financing needs, these loans may bridge the gap. Especially for real estate purchases when you're buying one property and selling an- other, these can provide the needed liquidity until longer-term financing is secured. 10) IRA 60-day rollover. With many caveats and cautions, you are allowed once in a 12-month period to withdraw funds from an individual retirement account, and if the funds are deposited back into an IRA within 60 days, it isn't a distribution. Consider it a last resort when repayment is certain. K N O W H O W e high dive into entrepreneurship BY SUSAN SHALHOUB Special to WBJ S ales lead to revenue, and revenue leads to meeting company goals; but what leads to sales? Leads, of course. Unfortunately, leads don't just fall in one's lap (until referrals start rolling in, that is). Here are three ways to sharpen your leads game a bit this coming week. Why not put some of these into action? Meticulously qualify leads. Any lead is not a good lead, aer all, according to SalesProLeads, a lead-qualification program company based in Reno, Nevada. "To qualify leads is to focus on quality over quantity. A big list of prospects who are not interested is not nearly as helpful as a smaller list of those who show a genuine interest and are open to a conversation," the company blog states. Sales opportunities should fit a company's ideal customer profile, as opposed to adding just any old willing prospects to email campaigns (and hoping they will call). Wear a name badge. Indeed suggests this, especially for those who work in real estate: Wearing a name badge with your company and title in public places can steer conversations toward your work and foster leads. "at's when you can ask if they need any help," Indeed's editorial team suggests, aer sharing insights or trends in the local market to show you know your stuff. Don't forget to have business cards with you. Create human-focused and value- based content. "Companies spend far too much time being product-focused in their content and not enough time correlating their products with how a client's problems can be fixed," says Yunche Wilson at Forbes. She recommends using various mediums and concentrating on the unique buyer's journey. "Companies will be able to bridge the trust gap and shorten the sales cycle," she says. 10 THINGS I know about... ... Accessing liquidity for an investment opportunity G E N E R AT I N G L E A D S Lauren Howe is principal and owner of empHowered PR, a public relations firm in Leominster focusing on providing strategic communications for the healthcare, manufacturing, and nonprofit industries. Learn more at empHoweredPR.com. BY LAUREN HOWE Special to WBJ W hen I was growing up, my little brother Christopher had a unique ability to tease me into doing things I didn't want to do, like riding a bike without training wheels, trying spicy foods, and jumping off the high dive at the pool. At the pool, he would climb the ladder to the top of the high dive and jump off, arms in the air, and yelling at the top of his lungs as the splash from his landing irked the sunbathers on the deck. In January 2020, I decided to take a jump I believed would impress Christopher. I quit my job in corporate America to pursue my dream of becoming an entrepreneur. I planned to work part time at a local bicycle shop to share my joy of cycling with others while making ends meet for my family as I built my business. At the time, the world was only beginning to hear about the coronavirus and starting to wonder how it would affect us. We all know what happened in the months – and years – that followed. e Massachusetts state restrictions resulted in a delay to obtain a business certificate. My bank, insurance agent, attorney, and accountant went virtual, so I had to establish my business from my dining room table via electronic W W signature and video calls. What began as a dream turned into a nightmare as I saw established small businesses making tremendous sacrifices to stay afloat when I was just beginning my journey. I worried about my elderly parents getting the virus and my husband, who is an essential worker, bringing it home to my family. Yet, during the several months I spent considering my next steps and doubting my ability to survive the crisis, I found something wholly unique: a community of people who encouraged me to stay the course and remain true to my convictions to succeed. ey reminded me of my value and determination. at summer, through virtual coffee meetings, I secured my first client. Since then, my business has grown to a team of four with clients across the region, the country, and world. So many things during that time seemed to prevent me from making the jump into the pool of entrepreneurship: the financial implications of quitting a job without a foreseeable sustainable income, the uncertainly of getting that first client and, of course, lots of self-doubt. Still, in the last three years, I've learned I am capable of achieving success and blessed with people who believed in me and provided the encouragement to keep going. Overcoming these challenges and turning them into opportunities not only made me a smarter businesswoman, a wiser mother, and a stronger woman, but it proved I have the determination and grit to achieve any goal. Everyone has this ability within themselves! ough the high dive at the pool is long gone, I look back fondly to the memories on those summer days with Christopher. I just hope he sees how far I've come when he looks down on me from Heaven. W

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