There is this common misconception that starting a business is something for those that are young. This is so incorrect. In fact, there is a term for those that are over 50 and that start a business: boomerpreneurs. In most situations these are professionals that had long and successful careers, only to start something at a later point in time, usually after retirement or after being laid off.
Obviously, it will be a little complicated to start the business when you are over fifty. The following tips may help you.
Think About Personal Risk Tolerance
Risk tolerance is really important since it is normally lower for those over 50 than young adults. The biggest risk in most cases is to lose the entire retirement fund. That actually happens quite often. Remember that there are always risks associated with launching and running a business. If you cannot afford the large risks, you can consider buying a business or taking advantage of a franchise option. When you start from zero the risk is really high.
Avoid Using Personal Retirement Funds
If you use the retirement funds to start a business you may be faced with a disaster in the future. If the business fails, your income will be zero and you will have no money to rely on. It is true that people in a desperate situation will make a desperate decision. Because of this, you want to work with someone. Be sure that absolutely all available options are discussed before you access retirement funds. Funding can be obtained from investment funds, friends, family and the bank.
Get Ready To Deal With Obstacles And Rejections
Entrepreneurs can only be successful when they do what it takes to sell. You would need to sell to future employees, vendors, investors and customers. However, if you are over 50, you will surely be faced with more obstacles and rejections. The successful business can be driven by the wins you have, although you really need to work hard to get them. Even if 5% of the prospects respond in a positive way, it is still a win.
Never Build A Company Solely Around You
We need to face the facts. When we age there is a higher possibility to get ill and abilities will become diminished. Senior entrepreneurs need to be aware of their mortality. This practically means you need to be dispensable. You can train or recruit replacements. Alternatively, options available to sell businesses should be in place. If you will wait for too long, value can go down. Finding a partner is really wise for senior entrepreneurs.
Do Not Be Afraid To Get Help
Although you will most likely start your business in an industry you know a whole lot about, business running is something that requires brand new skills. You can definitely have mentors and work with them to improve. At the same time it is always a good idea to read publications that are senior-oriented and participate in industry webinars/workshops. Networking is as important with senior entrepreneurs as it is with young entrepreneurs.