Retired Brains
Start Your Own Business
Americans ages 55 to 65 are forming businesses at the highest rate of any age group--28% higher than the average for all adults. The business formation rate for people ages 45 to 54 is also higher than average.
 
Although many older Americans have started businesses with comparatively little capital investment it is important to recognize that most businesses will not generate much revenue for some time and you must plan to have enough cash on hand to pay for your living expenses in addition to possibly having to put more money into your start up.
 
Starting your own business can be a challenging but rewarding endeavor. Planning for success is one of the best ways to ensure your efforts will be profitable. Before you establish your own business, make sure you've taken these essential steps.

Before starting you own business there are many things to plan.

  1. Talk with your accountant to help you set up a bookkeeping system and other accounting necessities. Do not attempt to do this on your own as the time you will have to spend later converting your systems to workable bookkeeping and reporting will be substantial.
  2. Write a business plan that will give you some guidelines and update it regularly as your business develops. Your plan should include cash flow projections and a p&l statement. This plan will also be necessary should you need to borrow moneys.
  3. Talk with an attorney to see if you should incorporate as an LLC, corporation, sole proprietorship, partnership or other corporate entity. and review local laws for home operated businesses if you plan to operate from home..
  4. Talk with an insurance professional to see what kind of coverage, if any, you may need in your new business.
  5. Pick a name for your company and check to make sure it is available and that the URL is available and if so register it immediately. Remember the first impression you will make on potential clients or customers is your business name.
  6. Secure adequate start-up capital in advance of starting your business. Your business plan should provide the information necessary to secure these funds.
  7. Acquire the appropriate licenses to operate your business.Some of this information comes from CorpAmerica. For more information go to: http://www.corpamerica.com/Start_a_Business.html

 
Funding a New Business
If you are about to start your new business, but you lack the financial backup for doing it, perhaps it's time to look around and see what the market has to offer you in terms of new business loans. Making a loan is an important step in itself, let alone when you contract it in order to invest it in your freshly started business where profit is uncertan.
 
Not everyone can afford to start a new business with their own moneys. Check this out for do's and don'ts and loan comparisons. http://business.securedloanscomparison.com/new_business.html
 
Wal-Mart's Sam's Club members can now apply for a loan of up to $25,000 to fund small businesses.
Wal-Mart is expanding their services to offer banking or "bank-like" financial services to customers. Wal-Mart is testing a program with Superior Financial Group, a federally licensed non-bank lender.
Loans from $5000 to $25,000 will be available to members who qualify. Loans will primarily be made to businesses owned by minorities, women and veterans.

Note: We believe these sites offer valuable information on getting your business started but suggest you check with your attorney or adviser before starting a relationship with any 3rd party offering advice or counsel.
 
Small business suggestions from our readers:
 
We've heard from a number of our viewers who have started their own business and many have told us to suggest that starting a small landscaping, painting or dog walking business takes very little capital and can provide extra income. A few have also used grandsons and granddaughters to help in these enterprises as well as neighborhood kids. Grass cutting and snow removal are other areas where revenue can be created as well as cleaning services and one man told us he specialized in cleaning out garages locally and was able to expand to his entire city hiring other boomers to assist in this work. .
 
Health Care Insurance
 
If you start your own business and pay yourself less than $50,000 a year you will qualify for small-group coverage and a tax credit. If you pay yourself (and your partners) less than $50,000 each for the next few years you should qualify for the 35% tax credit for small business owners which provides medical benefits under the new health-care reform law.
 
To find an insurance broker to set this up for you go to
www.nahu.org/consumer/findagent,cfm You could also ask other small business owners for referrals to their insurance broker to help you get signed up for the coverage you need.  Costs will vary substantially but should run from $200 a month for an individual to $1500+ for an entire family.
 

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