Are you thinking about starting your own business? You’re not alone. Entrepreneurship (including business ownership and self-employment) is on the rise with the 60-plus crowd.
The percentage of individuals age 62 and over who were self-employed increased from 4.2% in 1988 to 5.4% in 2015, according to a recent report from the Small Business Administration (SBA). Read The Ascent of the Senior Entrepreneur
Here are some things to consider if you are thinking of joining their ranks:
Ask yourself: Is business ownership for me? Not everyone has the temperament, determination or resilience to be an entrepreneur. There are risks and rewards and it’s not an easy road. It is, however, a worthwhile one – especially if you are nearing retirement from a long-time career, or looking for a way to create extra income in your later years. Think hard about how much time and effort you are willing to devote to a new business. There’s a lot more involved than you may think.
Research the marketplace. Know your product or service and the market for it. Look for a perfect alignment between your skill set and previous career experience (what you know) and a market opportunity (what is needed). And: It doesn’t have to be a grand slam business plan or a truly ‘big idea’. Some of the most dependable – and profitable – businesses are built on products or services which offer value and convenience, but aren’t necessary life-changing or built on break-through innovation. Look for a good, viable idea that can be executed easily.
Realize the financial risk involved. If you are a solo entrepreneur, your money is the businesses’ money and vice versa. If your business fails, you are solely responsible. On the other hand, if it succeeds, you reap all of the rewards. Know what you are getting into before you begin investing money.
Get good advice and find a mentor. Entrepreneurs who have good mentors are more successful than those who don’t. Encore Business Advisors provides expertise and ongoing mentoring for new and aspiring entrepreneurs.
Be creative when looking for financing. Consider every avenue, but be careful about giving up too much equity. If you give up too much equity, you might find yourself working for someone else again!
We can help you start planning for success. Contact Lori Martinek to discuss your business idea and determine how viable it is in today’s marketplace.