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New Rules For Older Entrepreneurs
The new entrepreneurs are not just kids. Tough economic times, longer life spans and a new cultural intolerance for leading a dissatisfying life are pushing more and more "older" people into the role of entrepreneur. These people have many different reasons for pursuing the path to business ownership. Today's mature adults can count on living many years past traditional retirement age-and who wants those years to be boring and empty? On the negative side, the cost of living has increased steadily for decades while wages have remained essentially flat. This combined with the volatile economy means more people seeking additional streams of income. So, for those entrepreneurs who are well beyond a start-up in the dorm room, here are some new rules of the game. Old rule: You've got years of wisdom and people are willing to pay for your experience. New rule: Your wisdom is great, but you had better be tech savvy. It's not enough anymore to have a key piece of knowledge. You have to know how to get in touch with the people who need it...any many of them are using electronic media to get and filter their information. Find out how an internet presence can boost your business and increase sales. Until you are up to speed on the latest and greatest technology (and even after) expect to pay for technical expertise. Old rule: A lifetime of earning means you have significant savings or a retirement fund you can tap into for start-up capital. New rule: Since market fluctuations have gutted most investment based accounts you will need to be more creative regarding financing. At one time lenders liked to see older entrepreneurs coming in the door, because they knew older clients would have retirement accounts and savings that they could either use to finance their businesses or use as collateral. This is no longer true. Retirement accounts the world over have lost up to a third of their value. Homes, which Americans used like ATMS by tapping into ever-growing equity, are now liabilities for many with crushing mortgage payments and falling values. Don't drain your survival funds for start-up cash. Old rule: Older entrepreneurs should aim for short-term businesses and give up the idea of empire building. New rule: We are living longer healthier lives so go ahead and dream big-with caution. The nature of "middle age" and "retirement" is very different than it was when you were growing up. It's not unusual for an older entrepreneur to be looking at 15, 20, 25 years or more to build a business. Don't limit yourself to traditional retirement style businesses like crafts and hobbies. Go ahead and start your dream business but be sure to create an exit plan. Old rule: You can pass your business on to your children. New rule: While you still CAN pass down a family business, don't count on your children wanting to take over your dream. First, not everyone is cut out to be an entrepreneur and the idea of running a business, even yours, may be totally unappealing to your kids. Many children of entrepreneurs who witness the long hours and unpredictable cash flow of business ownership opt for the security of a paycheck instead. Try not to be offended-this decision is more about them than it is about you. Discuss early on with your family your plans to start a business and create an exit plan with options. Creativity and determination know no age limits. However mature adults are more likely to have responsibilities that limit the ability to take risks. Your business venture can benefit greatly from your accumulated professional and life experience, but you must also be willing to learn new technology and be flexible in the face of change. Don't let anyone tell you that entrepreneurship is just for the young. Dive into the second (and third) chapter of your life with all your energy-just don't risk all your retirement savings.
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More articles on running a business
10 Ways to Pick Up Business in a Down Economy
Is Your Price Dictated by Your Client Base?
Writing a Business Plan - Top 10 Tips
Outsourcing: A Valuable Tool for Small Business Owners
Does Bad Mouthing Your Competition Get You Ahead?
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