The Pros and Cons of Starting a Business Later in Life

When you imagine new business owners, you might imagine fresh, young faces full of enthusiasm for being able to enter the workforce and be their own boss. However, that’s not always what the average new business owner looks like. After years of experience in the workplace, many people decide to start their own businesses later in life. If that’s something you’ve been thinking about doing, you may improve your chances of making a well-informed decision by considering these advantages and drawbacks:

​Pro: Many Years of Experience

The average older adult has already been in the workforce for several decades. As a result, they have experience with various situations and problems, such as the ins and outs of finding commercial property for lease, negotiating deals, working with suppliers, and combating employee issues.

This experience can often work in their favor. Rather than having to learn how to pay business taxes and obtain new leadership and communication skills, many older adults already have these skills. As a result, they can focus more on launching a successful business and less on trying to learn the skills to run it. 

​Con: More Risk Averse

​After years of working, many older adults are well-established. They have families, homes, and assets. Starting a new business can sometimes be risky. You may have other people who rely on your earnings, or you’ve got assets on the line. If your business fails, you may have more to lose.

New entrepreneurs don’t typically have the same risks when starting a business. They haven’t yet had the time to build their assets and wealth. They also don’t always have a family who relies on their paycheck.

Pro: More Schedule Flexibility

Many older adults are already established in life. They have a secure financial situation and may even have investments that earn passive income. This can sometimes mean they don’t need to rely on their new business venture to cover all their bills. As a result, their schedule can be more flexible. They don’t always have to work long hours to make ends meet. Instead, many older adults can treat their businesses more like a hobby.

Con: Technology Struggles

It can sometimes be harder to learn new skills later in life. This is because certain parts of the brain start to shrink, including the parts we need for challenging mental activities and learning. As a result, many older adults reentering the workforce in an owner capacity may struggle to learn the new technological advancements that may see their business thrive. New hardware, software, and processes can be overwhelming, especially when it has been a while since they’ve been in the workforce. 

​Pro: More Time

Young professionals starting their own businesses tend to have busy schedules. They’re often developing new relationships and creating families. This all happens while they’re trying to launch a new business off the ground and support themselves.
 
Older adults don’t tend to have the same time constraints. They may have already enjoyed a long and successful career and have a grown-up family. Now, they have the spare time to focus on launching a new business.
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Starting a new business later in life isn’t for everyone. However, if you’re not quite ready to retire, consider these pros and cons above. You may be more prepared for a new chapter of business ownership than you think.