Tips For The New “Age” Entrepreneur

According to a U.S. Labor Statistics report, there is a new generation of entrepreneurs usurping the lead in business startups. The ranks of the self-employed aged 55 - 65 rose 33% in 2006, while the number of self-employed 25 - 35 year-olds fell 2%. Furthermore, an earlier Baby Boomer survey conducted by AARP in 2003 found approximately one in three self-employed workers aged 51 - 59 transitioned to self-employment after the age of 50. This trend is not surprising considering Baby Boomers are expected to live longer and have the time, energy, desire and sometimes need to continue to be productive.

There is a whole new "age" of entrepreneurs. The entrepreneurial image of the college drop-out who founded his company at 21 (of course, I'm talking about Bill Gates); or the twenty-year-old mom whose chocolate-chip cookie recipe launched one of the most visible and successful dessert empires (who else but Mrs. Fields), is changing.

It seems there are two reasons why Baby Boomers decide to pursue an entrepreneurial path. They either have to or they want to. The "have to's" may feel they are at-risk of a corporate lay-off. They know they still need an income and are fearful of finding another job because of their stereotyped image as a "high-paid, older worker." The idea of starting their own business seems like a good option. The "want to's" want to seize this time in their lives to use their skills and experience in a whole new arena -- a chance to continue to contribute to society while following their passion.

Whether you are a "have to" or a "want to" Baby Boomer entrepreneur, you need to listen carefully to what your mind and heart are telling you. This is no time in your life to leap before you look. Think about what makes good sense and matches your financial and personal needs and expectations. Here are some ideas to get you started:

Consider Your Resources

Financial
Evaluate your current income and expenses, liquid assets and investments. Determine how much you are willing to invest and how large of a risk you are comfortable and able to take. Think long and hard about the degree of personal assets you are willing to commit as collateral, and how much you want to protect. If you need to raise money, consider how you will do this -- accumulate over a period of time through your own contributions; or tap into a network of funding sources -- family, friends, banks, private investors, government grants, etc.

Personal
Now is the time to build on what you have learned professionally and personally. Think about how you can transfer your years of experience into another endeavor. For example, if you have had a long career as an attorney, think about how your analytical, negotiating and research expertise might translate to a new profession. Pick an industry that plays to your strengths and your desires ... and is reasonable.

Starting a business later in life takes a real commitment, so be sure you choose something you truly love -- something that you would enjoy doing every day whether you got paid or not. Also, consider whether there truly is a need for the products or services you plan to provide. You do want customers, so choose a business where there is a clear need. Think about how your business will be different and who your ideal clients will be.

Research/Technology
The Internet is an entrepreneur's best friend. Only a decade ago, compiling information on a given topic would take hours spent at the library. Not any more.

The business you are considering may be new to you, but not to others. The Internet is a great resource to help you find everything you possibly can about a chosen field. Try searching for information on both successful and failed business ventures in the same or similar field you are considering. Any piece of information you get moves you one step further toward making an informed decision on how or if to pursue becoming an entrepreneur.
Other technological advancements also provide great resources for entrepreneurs. It used to be the first steps in starting a new business were renting an office and hiring a staff. Computers, cell phones (especially those with the capability to retrieve emails!) and voice-mail have made working from home, from a small office or from a variety of locales (think snow-bird or rain-bird!) viable, respected options and starting a business less expensive and easier.

Other Options
While there are excellent reasons for starting a business when you are over 50, the fact is that starting a business later in life is a bigger risk than when you are younger. Should the business fail, you don't want to have to rebuild depleted finances at this stage in your life. So, you want to make the best possible decision before you invest your dollars in a new business. You might want to consider buying an existing business with a successful track record or a proven franchise. A franchise is like buying a "business in a box." The franchiser has developed a successful system you can duplicate.