Paul Bergman

Category: Business Consulting

  • Would You Ignore a 1-in-3 Chance of a $250,000 Loss?

    Would You Ignore a 1-in-3 Chance of a $250,000 Loss?

    If someone told you that you had a one in three chance of an accident this year that could cost your business $250,000, what would you do?

    Would you roll the dice and hope it doesn’t happen?
    Or would you buy an insurance policy that dramatically reduces your risk?

    That’s the same calculation every small and mid-sized business faces when it comes to cybersecurity.

    According to Microsoft’s 2024 SMB Cybersecurity Report, 31% of small and mid-sized businesses experienced a cyberattack in the past year, and the average cost of an incident exceeded $250,000. For many organizations, that’s not just a setback! I’ve seen businesses go under from this size loss; it’s an existential threat!

    The ROI of Prevention

    Now imagine you could reduce that $150,000–$250,000 loss risk for about $3,500 a month by investing in security tools, monitoring, and staff training. That’s $42,000 per year to safeguard the entire business. That’s far less than a full time employee in much of the US.

    The return on investment is clear:

    • Losses avoided: $150,000
    • Annual cost: $42,000
    • ROI: 257%

    That’s not an expense — that’s a high-performing investment.

    Every dollar spent on proactive cybersecurity yields more than $2.50 in protected value, not counting the reputational damage, lost clients, and downtime avoided.

    Cybersecurity Is Business Insurance

    Cybersecurity isn’t just about technology, it’s about risk management. It functions like an insurance policy you can actively control.

    Unlike traditional insurance, cybersecurity investments don’t just pay off when something goes wrong. They improve efficiency, reduce downtime, and build client trust every day. And unlike insurance premiums, your controls (such as employee training, managed detection and response, and strong identity protection) actually reduce the odds of an incident.

    Would you refuse to insure your business vehicles with a 1-in-3 chance of a crash this year?
    Probably not.
    Yet that’s effectively what many SMBs do when they delay or minimize cybersecurity investment.

    The True Cost of “Doing Nothing”

    The average cyberattack costs more than money. It brings:

    • Weeks of downtime
    • Lost customer confidence
    • Regulatory fines (especially if personal data is exposed)
    • Employee stress and turnover

    Recovery costs often exceed the original damage. Even a small ransomware attack can consume weeks of effort! That’s time that should have been spent serving customers and growing the business.

    The Smarter Investment

    When you frame cybersecurity as an investment, not an expense, the logic becomes simple:

    InvestmentAnnual CostPotential Loss AvoidedROI
    Cyber controls, monitoring, and training$42,000$150,000257%

    It’s like paying $1 for every $2.50 you keep safe.
    No CFO would ignore that kind of return.

    In Summary

    If there’s a 1-in-3 chance of losing $250,000, and a $3,500 monthly cybersecurity plan can prevent it, the question isn’t “Can we afford it?” it is “Can we afford not to?”

  • The cybersecurity reality for SMBs

    In today’s digital environment, SMBs can no longer assume “we’re too small to matter” when it comes to cyber-threats. Microsoft’s report underscores how the risk has become pervasive and how the stakes are significant for organizations with limited resources yet major responsibilities. The findings reveal both awareness and a gap between knowing the risk and acting fully on it.

    Here is a summary of the Microsoft report from a survey of SMBs.
    Read the Full Report Here

    5 Key Statistics

    Here are five standout figures from the report:

    1. 94% of SMBs say cybersecurity is critical to their success.
      According to Microsoft, 94% of SMB respondents recognize that cybersecurity is fundamentally important to business success.
    2. About 1 in 3 SMBs suffered a cyberattack in the past year.
      The report notes roughly 31% of SMBs reported being victims of a cyberattack (including ransomware, phishing or data breach).
    3. The average cost of a cyberattack for an SMB is over US$250,000, and some incidents exceeded US$7 million.
      Microsoft reports that the cost to an SMB can easily top the quarter-million mark and in some cases go much higher.
    4. 81% of SMBs believe AI increases the need for additional security controls.
      As artificial intelligence becomes more widespread, 81% of SMBs view it as elevating their security requirements.
    5. Less than 30% of SMBs manage their security in-house.
      The report indicates that due to limited resources and expertise, fewer than 30% of SMBs handle security internally, the rest rely on external providers or outsourcing.

    What this means for SMBs

    Given those statistics, here are some reflections and take-aways that SMBs (including you, if this applies) should consider:

    Awareness is high, but action must catch up

    Yes — 94% of SMBs know cybersecurity is critical. But the fact that ~1 in 3 have still been attacked suggests awareness alone isn’t sufficient. Investment in the right controls, training, governance and incident-response capability is essential.

    The financial risk is real

    With costs often exceeding US$250k (and in some cases many millions), cyberattacks can be existential for smaller companies. For SMBs with tighter margins, fewer resources, and less time to recover, the pressure is intense. Having a plan ahead of time can reduce both impact and downtime.

    New threats are emerging (AI, hybrid work, remote access)

    The finding that 81% of SMBs believe AI raises security demands signals that it’s not just “business as usual”. Threats are evolving, the attack surface is shifting (remote/hybrid work, cloud adoption, AI) and SMBs need to adapt accordingly.

    Outsourcing security is common but presents its own challenges

    Less than 30% of SMBs manage security internally. That means many professionals are depending on MSPs (managed service providers), consultants, SaaS tools, etc. While that’s often necessary, it creates dependencies: choose your providers carefully, establish clear SLAs, maintain visibility into what they do, and ensure you retain control over your security posture.

    Prioritisation and investment matter

    If 80%+ of SMBs intend to increase their security spending (as the report indicates), then the next question is where to invest. Data-protection, identity management (MFA, least‐privilege access), endpoint detection, and incident response planning should all be high on the list. Preventing an attack is far cheaper than recovering from one.

    Practical steps for SMBs today

    Here’s a brief “checklist” of actionable items based on these insights:

    • Conduct a cyber risk assessment: identify your assets (data, systems, identity), map your threat vectors (phishing, ransomware, remote access), and determine potential impact.
    • Ensure multi-factor authentication (MFA) is enabled for all privileged or remote access accounts.
    • Invest in employee training — phishing awareness, suspicious link detection, secure remote-work practices.
    • Implement an incident response plan: define roles, notification paths, backup/recovery procedures, and test it periodically.
    • Consider partnering with a trusted MSP or security consultant — but keep reporting, visibility and oversight top-of-mind.
    • Monitor emerging risks: AI/ML-driven threats, supply-chain vulnerabilities, cloud misconfigurations, hybrid work models.
    • Measure and track your security posture over time: number of access incidents, malware alerts, patching status, compliance with policies, etc.

    Final thoughts

    The Microsoft SMB Cybersecurity Report paints a clear message: SMBs cannot afford to be passive. The combination of widespread awareness (94%), meaningful attack rates (~31%) and potentially crippling costs (US$250k+) indicates urgency. At the same time, emerging threat vectors like AI and remote access complicate the picture.

    Yet it’s not too late — careful planning, targeted investment, smart outsourcing, and ongoing monitoring can shift a business from vulnerable to resilient. SMBs may not have the large budgets of enterprise giants, but they often have agility on their side: the ability to implement security controls, train staff, and build culture more quickly. With the right mindset and focus, smaller size can become an advantage rather than a disadvantage.

    If you’d like, I can pull additional statistics from the report (e.g., geographical breakdowns, sector‐specific results, readiness levels) and we could craft a companion infographic or checklist for SMB leaders. Would you like me to do that?

  • Balancing Budgets and Breaches: The Risky Tradeoff of Cutting Tech Talent

    Balancing Budgets and Breaches: The Risky Tradeoff of Cutting Tech Talent

    Balancing Budgets and Breaches: The Risky Tradeoff of Cutting Tech Talent

    In an era where technology drives competitive advantage, companies are under increasing pressure to cut costs while remaining innovative. Artificial Intelligence (AI) has emerged as a compelling solution, promising automation, efficiency, and scalability. For executive boards focused on shareholder value and margin expansion, it’s easy to see AI as a strategic investment—especially during periods of financial tightening.

    But as organizations accelerate their shift toward automation, many are making a consequential tradeoff: reducing their technical headcount, especially in cybersecurity and IT operations. While this may appear to streamline expenses in the short term, the longer-term implications deserve closer scrutiny.

    Recent examples from major firms like Microsoft and CrowdStrike underscore this trend. Both companies have announced workforce reductions—7,000 and several hundred jobs respectively—while ramping up AI investments (Microsoft Layoffs, CrowdStrike Cuts). For board members, this shift may look like prudent fiscal management—but there’s another side to the story.

    Cybersecurity Staffing: An Unseen Cost

    According to a Dark Reading article, mass layoffs in information security can create hidden vulnerabilities. More than 80% of departing employees take some form of sensitive information with them—either unintentionally or maliciously. This risk grows exponentially when defensive cybersecurity staff are reduced or replaced without a solid transition plan in place.

    Cutting defensive staff may also mean fewer eyes on real-time alerts, fewer team members conducting penetration testing, and longer response times during active threats. AI can certainly assist with detection and automation—but it still needs experienced humans to interpret signals, act with nuance, and make judgment calls in rapidly evolving threat environments.

    Why Boards Feel the Pressure

    From the boardroom perspective, AI can look like a smart play. Technology vendors promise lower long-term operational costs, 24/7 monitoring, and faster throughput. And with capital markets and investors increasingly fixated on profitability and growth, the drive to find cost efficiencies is real. This is particularly acute in tech-heavy sectors where headcount is a large portion of operational spend.

    However, while automation can enhance productivity, it doesn’t eliminate risk. When cybersecurity roles are seen as cost centers rather than risk mitigation investments, the balance can tip dangerously toward exposure.

    A Smarter Path Forward

    This isn’t a call to reject AI. On the contrary, AI is already improving outcomes in areas like phishing detection, log analysis, and behavioral anomaly monitoring. But it works best as a co-pilot—not a replacement—for skilled professionals.

    Boards and executive teams must consider hybrid models that integrate AI with existing human talent. Upskilling employees to work alongside AI, rather than replacing them outright, can preserve institutional knowledge while embracing innovation.

    Final Thoughts

    It’s understandable that companies seek to do more with less. But as cybersecurity threats become more sophisticated and reputational risks grow, the decision to replace experienced defenders with machines should be made with full awareness of the tradeoffs. AI may be the future—but it’s not a substitute for human expertise just yet.

    Let me know if you’d like a LinkedIn version or graphic elements for this article.

  • CouchDB: This NoSQL Database Stands Out for Scalability and Flexibility

    CouchDB: This NoSQL Database Stands Out for Scalability and Flexibility

    CouchDB came up on my radar a few weeks ago when researching the Erlang OTP SSH vulnerability CVE-2025-32433 exploit. CouchDB is a super interesting database because it is schema-free, document-oriented, and great at syncing across devices. Here are some common uses:

    ???? 1. Mobile Applications (especially Offline-First Apps)

    • CouchDB’s ability to sync databases (even when offline) makes it a natural fit for mobile apps that need to work without internet access.
    • Example: A delivery app where drivers can still log deliveries without a connection and sync everything later.

    ???? 2. Web Applications with Complex User Data

    • Since CouchDB stores data as JSON documents, it’s flexible for apps that need to save lots of user-generated content (comments, posts, custom settings).
    • Example: A customer portal where users can update settings, upload files, and personalize dashboards.

    ???? 3. Distributed Systems

    • CouchDB is designed for master-master replication, so multiple databases can talk to each other and stay in sync. Perfect for multi-location apps.
    • Example: A retail chain where every store has a local copy of the database, syncing nightly with headquarters.

    ???? 4. Event Logging and Audit Trails

    • It’s great for storing events or logs because documents are easy to append and you don’t need to worry about rigid table structures.
    • Example: A cybersecurity system recording user login attempts and system changes.

    ???? 5. E-commerce Product Catalogs

    • CouchDB’s flexible document model is good for products that have different attributes (e.g., a laptop vs. a T-shirt).
    • Example: An online store where some products have 20 fields and others have 3.

    ???? 6. IoT Device Data

    • Collecting small, varied bits of data from lots of IoT devices is easier with CouchDB because of its schema flexibility and ability to sync in chunks.
    • Example: Smart home devices sending temperature readings, device settings, and usage logs.

    ???? 7. Content Management Systems (CMS)

    • Great when you need a flexible backend for a CMS that might have articles, videos, events, and other content types.
    • Example: A news platform where every article can have a totally different structure or metadata.

    If it’s good for a CMS…can we use it for WordPress?

    The realistic answer is ‘no’ because CouchDB is a NoSQL database and cant replace the WP database easily. Being an engineer, the real answer is … technically, it could be made to work but you would need to rewrite almost all of WP.

    ????️ WordPress is Built for SQL Databases

    • WordPress is designed around relational databases like MySQL or MariaDB.
    • It expects tables like wp_posts, wp_users, wp_options, and uses complex SQL queries (joins, foreign keys, etc.).
    • CouchDB is a NoSQL document database — it does not use tables, rows, or SQL at all.

    Bottom Line:
    WordPress expects structured, relational data. CouchDB offers flexible, unstructured documents. They speak totally different languages.

    ???? WordPress Core Would Need a Rewrite

    • You would need to reprogram the entire database layer of WordPress (called wpdb) to talk to CouchDB.
    • All the plugins, themes, and core functionality that expect SQL would break.

    ???? Different Strengths

    • MariaDB is great for structured content where relationships matter (like posts belonging to users, comments on posts, etc.).
    • CouchDB is better for dynamic, changing, or highly variable content, and syncing between devices — not rigid relational structures.

    ???? Could it theoretically be done?

    • Yes, with massive effort:
      • Build a compatibility layer that translates WordPress SQL queries into CouchDB document queries.
      • Rewrite plugins and themes that directly touch the database.
    • Some experimental projects (like “NoSQL for WordPress”) tried this idea with MongoDB (another NoSQL database) but none really caught on.

    ???? In Summary:

    • CouchDB cannot replace MariaDB in WordPress easily.
    • Stick with MariaDB or MySQL for WordPress.
    • If you want CouchDB, it’s better suited for custom apps or new CMS builds where you design around document storage from the beginning.
  • Why HR Service Firms Should Consider Cybersecurity Services as Their Next Revenue Stream

    Why HR Service Firms Should Consider Cybersecurity Services as Their Next Revenue Stream

    Introduction

    In today’s digital-first world, compliance is no longer just about HR manuals and legal frameworks—cybersecurity has become central to every risk management conversation. For a companies in this space, which already offers legal and HR compliance solutions, expanding into cybersecurity services is not just a logical step—it’s a strategic opportunity to deliver greater value and unlock a powerful new revenue stream.

    1. Compliance and Cybersecurity Are Intertwined

    Companies that turn to staffing for HR or legal compliance already trust the brand to help them navigate complex regulations. But today’s regulatory landscape increasingly includes data protection laws, digital risk mandates, and cybersecurity requirements. From GDPR and CCPA to SOC 2 and HIPAA, your clients need help understanding and mitigating risks tied to information security.

    Adding cybersecurity services like: risk assessments, incident response planning, and employee awareness training, allows staffing companies to offer a more complete, integrated compliance solution. It’s not a pivot, it’s an expansion.

    2. A Natural Extension of the Talent Placement Model

    Expertise in workforce solutions could also be enhanced by cybersecurity services in two key ways:

    • Security staffing: Help clients identify, vet, and place cybersecurity professionals—roles that are notoriously hard to fill.
    • Security onboarding and offboarding protocols: Many breaches occur due to poor user lifecycle management. By offering cybersecurity consulting tied to employee access and data policies, you provide more value around the employment lifecycle.

    3. Clients Are Already Looking for These Services

    According to Deloitte, more than 70% of mid-size companies now seek outsourced support for cybersecurity. Your clients are likely evaluating vendors for penetration testing, policy development, and even virtual CISO services. Why not position yourself as a trusted partner already within their ecosystem?

    With the right hires or strategic partnerships, you could offer packages tailored to client size and risk profile, including:

    • Cyber risk assessments
    • Vendor risk management
    • Policy and compliance alignment (e.g., SOC 2 readiness, HIPAA risk analysis, CMMC, NIST alignment)
    • Security awareness training programs
    • Cloud and endpoint security consulting

    4. High-Margin, Recurring Revenue Model

    Cybersecurity services naturally lend themselves to monthly retainers, annual reviews, or project-based consulting—making them ideal for building predictable, scalable revenue. Margins in cybersecurity services are often higher than traditional staffing or compliance offerings, especially when automation and standardization are in place.

    5. It Future-Proofs Your Brand

    By embracing cybersecurity, staffing firms strengthen market position as a modern, full-spectrum compliance partner. This kind of forward-thinking service offering not only retains current clients but also attracts new ones—particularly in sectors like healthcare, finance, and SaaS, where cybersecurity isn’t optional.

    In Summary

    Cybersecurity isn’t just an IT issue, it’s a business imperative. Stepping into cybersecurity services complements your existing offerings, reinforces your position as a trusted compliance partner, and unlocks long-term growth. As digital risks continue to rise, your clients will be looking for support. With the right expertise and a commitment to strategic service expansion, staffing firms could be exactly who they turn to next.

  • Why Create Community Engagement? Benefits to the Business and Employees

    Why Create Community Engagement? Benefits to the Business and Employees

    Community engagement is more than just a nice-to-have; it’s a strategic asset for companies looking to build stronger relationships with their communities, boost brand loyalty, and foster a positive work culture. Companies benefit from enhanced reputation and brand equity, while employees experience a sense of fulfillment and personal growth. Let’s explore several ways companies can engage with their communities effectively and the value these efforts bring to both the business and its employees.

    1. Hands-Off Volunteering – Site Volunteering

    One of the simplest ways for companies to engage is through “site volunteering,” where employees participate in existing community programs. This approach allows employees to make an impact without requiring extensive planning from the company. Employees can choose the causes they care about, fostering a personal sense of purpose. From a business perspective, encouraging this kind of community participation helps build a company’s positive image in the local area, enhancing relationships and increasing visibility.

    2. Hands-On Corporate Site Nonprofit Activities

    Companies can take a more hands-on approach by hosting nonprofit activities on their premises. These could include donation drives, charity fairs, or even fundraising events. This approach can create a stronger bond between employees and the company, fostering team spirit while making a tangible impact in the community. Companies benefit as these events can attract media coverage, showcasing the business’s commitment to giving back.

    3. Skills-Based and Pro Bono Volunteering

    Employees can provide professional expertise to nonprofits, which is a valuable form of community engagement. For instance, a marketing team could help a nonprofit develop a social media strategy, or an IT department could assist with digital transformation. Employees gain professional experience, develop new skills, and often feel greater satisfaction. For the company, this type of engagement enhances its reputation as a supporter of nonprofit work, fostering goodwill and creating a positive association with its brand.

    4. Virtual or Remote Volunteering

    Virtual volunteering is an adaptable option, especially for companies with remote or distributed teams. Employees can contribute their time and skills to nonprofits without geographical constraints, making it an inclusive form of engagement. Companies offering virtual volunteering options expand their reach and accessibility, allowing all employees to participate, which promotes an inclusive work environment.

    5. Serving on Nonprofit Boards

    Companies can encourage employees to serve on nonprofit boards, providing them with opportunities for professional development, networking, and community impact. Employees gain invaluable experience in governance and decision-making. Businesses that support this type of engagement benefit by having representatives in community circles, which enhances the company’s presence and influence.

    6. Sponsor Training and Education Activities

    Sponsoring training programs or educational events for nonprofits allows companies to invest in the development of the community’s skill set. Employees can participate as trainers or mentors, gaining experience in leadership and mentorship. Sponsoring education is a strong PR move for businesses, as it showcases their commitment to community development.

    7. Volunteer Time Off (VTO)

    Offering employees paid volunteer time off (VTO) encourages them to actively contribute to causes they care about. This benefit demonstrates a company’s commitment to work-life balance and community impact, making it an attractive workplace perk. For the company, VTO programs can improve employee satisfaction, retention, and overall morale.

    8. Program Structure and Management

    Having an organized structure to support these initiatives is key to sustained success. An internal support function, such as a CSR team, can coordinate activities, track impact, and facilitate employee engagement. This structure signals the company’s genuine commitment to community involvement.

    9. Joint PR Collaborations

    Companies can partner with nonprofits on public relations campaigns, amplifying their efforts and reaching a wider audience. This collaboration raises awareness for the cause and the company, building a strong, socially responsible brand.

    Wrapping Up
    Community engagement enriches companies and employees alike. It enhances the company’s public image, boosts employee morale, and creates lasting impacts in the community. When companies take an active role in supporting and structuring these programs, they foster a culture of purpose that benefits everyone involved.

  • What is an ROBS (Rollover as Business Startup)

    What is an ROBS (Rollover as Business Startup)

    ROBS stands for “Rollover as Business Startups.” This is a financial strategy that allows individuals to use their retirement funds, specifically from a 401(k) or an IRA, to invest in a new business without incurring early withdrawal penalties or taxes. ROBS enables entrepreneurs to access their retirement savings to fund their business ventures while maintaining the tax-deferred status of those funds.

    This topic has come up a few times when I’ve been talking to business owners. I figured this would be a good time to write up my understanding of this topic. I’m not a financial advisor nor a tax professional so I encourage you to do your own research and speak to your professionals if this path sounds interesting to you.

    Need Startup Capital?

    When considering how to fund a startup using retirement funds, two common options are a Rollover as Business Startup (ROBS) and a business loan. Each approach has its own set of advantages, disadvantages, and suitability depending on your financial situation and business goals. Let’s compare ROBS and a business loan to help you determine which option might be better for your needs.

    ROBS (Rollover as Business Startup)

    Advantages of ROBS

    1. No Debt: With ROBS, you are not taking on any debt. The funds are your own retirement savings, so there are no loan repayments or interest costs.
    2. No Taxes or Early Withdrawal Penalties: If structured correctly, a ROBS allows you to access retirement funds without triggering early withdrawal penalties or taxes.
    3. Full Ownership: You maintain full control and ownership of your business without having to give up equity or take on partners.
    4. Immediate Access to Capital: ROBS provides immediate access to a potentially large pool of funds, which can be especially useful for startup costs or when traditional financing is difficult to secure.
    5. Leverage Your Investment: Since the money is yours, you are leveraging your own investment in the business, which can be a powerful motivator for business success.

    Disadvantages of ROBS

    1. Complex Setup and Compliance: ROBS transactions are complicated and require strict adherence to IRS and Department of Labor regulations. Any mistakes in setting up or managing a ROBS plan can lead to significant penalties.
    2. Risk to Retirement Savings: Using retirement funds to start a business is inherently risky. If the business fails, you could lose a significant portion or all of your retirement savings.
    3. Ongoing Administrative Burden: Maintaining a ROBS plan requires ongoing administrative tasks, such as filing annual reports and ensuring compliance with IRS regulations.
    4. Potential for IRS Scrutiny: ROBS transactions can attract scrutiny from the IRS, and it’s crucial to ensure that all legal and financial guidelines are followed.

    Business Loan

    Advantages of a Business Loan

    1. Preserves Retirement Funds: A business loan allows you to keep your retirement savings intact and avoid the risk of losing them if the business doesn’t succeed.
    2. Fixed Repayment Terms: Business loans come with fixed repayment schedules and interest rates, providing a clear picture of your financial obligations.
    3. No Compliance Concerns: Unlike ROBS, taking out a business loan does not involve complex compliance issues with the IRS or Department of Labor.
    4. Potential for Tax Deductions: The interest paid on business loans is often tax-deductible, which can provide some financial benefit.
    5. Builds Business Credit: Successfully repaying a business loan can help build your business credit, which could make it easier to obtain additional financing in the future.

    Disadvantages of a Business Loan

    1. Debt Obligations: Loans require regular repayments with interest, which can be a financial burden, especially for a new business with uncertain cash flow.
    2. Qualification Requirements: Securing a business loan can be challenging, especially for startups without a proven track record. Lenders may require collateral, personal guarantees, or a solid business plan.
    3. Interest Costs: Over time, the interest on a business loan can add up, increasing the overall cost of financing.
    4. Impact on Personal Credit: If you personally guarantee a business loan, any defaults or issues can negatively impact your personal credit score.
    5. Partial Ownership: While loans don’t require you to give up ownership, certain lenders might place restrictions on how you operate your business until the loan is repaid.

    ROBS vs. Loan: Which is Better?

    The choice between a ROBS and a business loan depends on your specific circumstances, risk tolerance, and business goals:

    • Use ROBS if:
      • You have significant retirement savings and are willing to risk them for a potentially higher return.
      • You want to avoid taking on debt or paying interest.
      • You prefer to maintain full ownership and control of your business.
      • You have the time and resources to manage the administrative and compliance requirements.
    • Choose a Business Loan if:
      • You want to preserve your retirement savings for future use.
      • You prefer predictable repayment terms and are comfortable taking on debt.
      • You qualify for favorable loan terms and are confident in your ability to repay the loan.
      • You want to build business credit and potentially benefit from tax deductions on loan interest.

    Conclusion

    Both ROBS and business loans have their place in funding a startup. ROBS can provide debt-free, penalty-free access to retirement funds but carries the risk of losing your retirement savings. A business loan allows you to preserve your retirement funds and build credit but involves taking on debt with interest.

    It’s essential to evaluate both options carefully, considering your financial situation, risk tolerance, and long-term business objectives. Consulting with a financial advisor or a legal professional specializing in small business funding can also provide valuable insights tailored to your unique needs.