How To Start Your Own Business
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. It is generally a better idea to begin your planning/starting of your business while you are still working if this is possible. Starting your business while you are still working means you still have regular monthly income and if the revenue from your new business is small or even negligible it is less likely to be a problem fiscally or mentally.
In 2014 businesses that were started by entrepreneurs in the age group of 55-65 accounted for 26% of all startups according to the Kauffman Index of Entrepreneurial Activity with people over 55 almost twice as likely to found successful companies as those between 20 and 34.
In 2014 5.5% of jobless managers and executives launched a business (up 31% from 2013) according to Challenger Gray & Christmas.
In most cases it is not necessary to dip into your retirement savings to start your business. Many entrepreneurs are able to work out of their homes.
If you start small you can review your success or lack thereof and invest a small amount of money depending on profitability and projections based on experience and results.
In 2014 businesses that were started by entrepreneurs in the age group of 55-65 accounted for 26% of all startups according to the Kauffman Index of Entrepreneurial Activity with people over 55 almost twice as likely to found successful companies as those between 20 and 34.
In 2014 5.5% of jobless managers and executives launched a business (up 31% from 2013) according to Challenger Gray & Christmas.
In most cases it is not necessary to dip into your retirement savings to start your business. Many entrepreneurs are able to work out of their homes.
If you start small you can review your success or lack thereof and invest a small amount of money depending on profitability and projections based on experience and results.
Boomers starting more businesses as they retire
Boomers are starting more businesses as they retire from their traditional corporate jobs. Many are interested in earning money and others wish to continue working in some capacity.
According to the U.S. Bureau of Labor Statistics, 60 percent of the country’s workforce is currently made up of “senior” employees. As people live longer and enjoy better health in later life, older Americans are starting new firms in record numbers.
Reasons why boomers succeed in these endeavors:
According to the U.S. Bureau of Labor Statistics, 60 percent of the country’s workforce is currently made up of “senior” employees. As people live longer and enjoy better health in later life, older Americans are starting new firms in record numbers.
Reasons why boomers succeed in these endeavors:
- Ability to deal with the inherent problems and challenges of starting a business
- Ability to judge, select and hire talent
- Contacts developed over many years of management including: banking, investing, sales, marketing, advertising, public relations, etc.
- Financial acumen developed over many years of experience including ability to forecast and budget.
Have enough start-up money
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. Check our funding your business pages by clicking here. You should also be aware that hours are long and the failure rate is high even during boom years.
Free legal forms
To download forms like consulting agreements, employment contracts, licensing agreements, invitations to bid, invoices, non-disclosure agreements, etc. go to Form Swift.
Make sure to check out our list of franchise businesses appropriate for boomers, seniors and retirees. Click on List of Franchises and their costs.
Make sure to check out our list of franchise businesses appropriate for boomers, seniors and retirees. Click on List of Franchises and their costs.
Before starting your own business consider...
- 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.
- 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.
- Talk with an attorney to see if you should incorporate as an LLC, corporation, sole proprietorship, partnership or other corporate entity like offshore companies.
- Review local laws for home operated businesses if you plan to operate from home.
- Talk with an insurance professional to see what kind of coverage, if any, you may need in your new business.
- 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.
- Secure adequate start-up capital in advance of starting your business. Your business plan should provide the information necessary to secure these funds.
- Acquire the appropriate licenses to operate your business.
An Introduction to Starting Your Own Business
Go to the SBA Learning Center to reach a free 30 minute SBA course designed for individuals to start a business after earlier career endeavors.
Check out this list of older Americans who have started their own businesses.
In this economy many older Americans are finding it difficult to find employment or make ends meet during their retirement. At the same time most do not have the capital or wish to risk their savings in starting their own business. We have complied a list of small business enterprises that have been successfully started by our readers. These businesses required little or not capital investment.
Carrie Bledsoe started her own concierge business. She runs errands for her clients including buying groceries, shopping for gifts, arranging parties, making vacation plans, seeing their pets are taken care of while clients are on vacation, etc. She started doing this for friends while she was in between jobs and has turned it into a full-time job. She told us she has even hired reliable people to help her during the holidays as this is her busiest season.
Doreen McManus collects used-goods that others throw out and makes small purchases at yard sales and sells them on Craigslist. She regularly checks the alleys and the front of people’s homes on garbage collection day. She found that baby items, bunk beds, video games and electronics sell well. “It is amazing what people discard that has value,” she wrote. “Anyone who is not afraid of getting into other peoples junk can do this,” she went on. “After a while you learn what will sell and what will not.”
Bill Franks, a retired engineer, spent a great deal of time designing landscaping for his own house and wrote us that he was successful in starting a small landscaping business. He began working on his friends and neighbor's properties and has expanded throughout his community. Bill now employees a staff of 6 who work on a project basis.
Betty Pohler has two dogs that she walks regularly and said in her email "I thought why can't I take care of some other people's dogs and get paid to do so?" Now she employs 3 other neighborhood "dog people" to assist her growing dog walking business and she even has been given keys to the houses of some of her clients so she can feed and check on their dogs while they are on vacation.
Peter Minter, a retired fireman, said he was always handy around his house and now has a growing business painting and doing small repairs in the neighborhood and said he has even been contacted because of a referral to work in a town 30 miles away.
Marge Blankenship has her grandsons helping her to cut grass in the summer and remove snow in winter. Her small enterprise has grown to the point where she now utilizes neighborhood kids to help keep her customer's properties looking well maintained. She told us "its easy, why didn't I think of this before.".
Morrie Cravits wrote to tell us he was always a good organizer and thought "why can't I put this skill to use" and as a result he has built a business cleaning out and organizing garages. "You wouldn't believe how much junk piles up in people's garages," he told us and "almost everyone I spoke with were real glad to have me pitch in to clean and organize." He urged us to tell others to try this as a source of income.
Corey and Sally Bridgewater started selling their handicrafts at a small craft market 2 years ago and now they travel to many craft shows and flea markets where they not only sell what they make, but sell all kinds of goods they get on consignment and even purchase items to sell "if we can buy them right" said Sally in her email to us.
Francine Taylor was always a good organizer and put her talents to work as a Move Manager. She assists people coordinate their move including separating what is to be moved from what needs to be sold, given to family or charity and thrown out. She helps with some of the packing and labeling even in the deciding of what items go to which rooms in the new home. Most of her clients are seniors but some are busy younger workers who do not have the time.
Mary Francis Milligan always loved to cook. Now that her 5 kids are out of the house she put her cooking skills to use by helping busy friends and neighbors plan, pick up and cook the food they serve at parties. This led to her being asked to do so for others she did not know. She charges for her time and works within the budget her customers provide. She told us that she has handled a party as big as 50 but had to hire some help to serve and clean up. She has even put together some meals for special occasions for just a couple who wanted to celebrate in their own home.
Katy Walters always considered herself a great shopper. She knew just where to find bargains as well as those special gifts that no one else thought of. Now she uses this ability to shop for others. She works with both men and women who are either to busy to shop for gifts or things they need for their home or just don't like shopping. She receives a percent of the total cost of what she buys but has a minimum charge for her time. She also returns and exchanges things for her customers but cautions she does not provide this service by itself.
Franklin Bhaumer has been a dog lover all his life but as he got older he found he did not have the strength to lift his 65 pound dog into his car. This gave him the idea to start a pet transport business. He purchased a van and hired some high school kids to help with the lifting and now transports larger dogs to and from the vet or where ever their owners so desire. Because of demand he is expanding his business and plans to purchase an old ambulance which can not only be used for just transport but also to move sick or infirm dogs and with the aid of veterinary assistants, keep the dogs comfortable on the way to the vets.
In this economy many older Americans are finding it difficult to find employment or make ends meet during their retirement. At the same time most do not have the capital or wish to risk their savings in starting their own business. We have complied a list of small business enterprises that have been successfully started by our readers. These businesses required little or not capital investment.
Carrie Bledsoe started her own concierge business. She runs errands for her clients including buying groceries, shopping for gifts, arranging parties, making vacation plans, seeing their pets are taken care of while clients are on vacation, etc. She started doing this for friends while she was in between jobs and has turned it into a full-time job. She told us she has even hired reliable people to help her during the holidays as this is her busiest season.
Doreen McManus collects used-goods that others throw out and makes small purchases at yard sales and sells them on Craigslist. She regularly checks the alleys and the front of people’s homes on garbage collection day. She found that baby items, bunk beds, video games and electronics sell well. “It is amazing what people discard that has value,” she wrote. “Anyone who is not afraid of getting into other peoples junk can do this,” she went on. “After a while you learn what will sell and what will not.”
Bill Franks, a retired engineer, spent a great deal of time designing landscaping for his own house and wrote us that he was successful in starting a small landscaping business. He began working on his friends and neighbor's properties and has expanded throughout his community. Bill now employees a staff of 6 who work on a project basis.
Betty Pohler has two dogs that she walks regularly and said in her email "I thought why can't I take care of some other people's dogs and get paid to do so?" Now she employs 3 other neighborhood "dog people" to assist her growing dog walking business and she even has been given keys to the houses of some of her clients so she can feed and check on their dogs while they are on vacation.
Peter Minter, a retired fireman, said he was always handy around his house and now has a growing business painting and doing small repairs in the neighborhood and said he has even been contacted because of a referral to work in a town 30 miles away.
Marge Blankenship has her grandsons helping her to cut grass in the summer and remove snow in winter. Her small enterprise has grown to the point where she now utilizes neighborhood kids to help keep her customer's properties looking well maintained. She told us "its easy, why didn't I think of this before.".
Morrie Cravits wrote to tell us he was always a good organizer and thought "why can't I put this skill to use" and as a result he has built a business cleaning out and organizing garages. "You wouldn't believe how much junk piles up in people's garages," he told us and "almost everyone I spoke with were real glad to have me pitch in to clean and organize." He urged us to tell others to try this as a source of income.
Corey and Sally Bridgewater started selling their handicrafts at a small craft market 2 years ago and now they travel to many craft shows and flea markets where they not only sell what they make, but sell all kinds of goods they get on consignment and even purchase items to sell "if we can buy them right" said Sally in her email to us.
Francine Taylor was always a good organizer and put her talents to work as a Move Manager. She assists people coordinate their move including separating what is to be moved from what needs to be sold, given to family or charity and thrown out. She helps with some of the packing and labeling even in the deciding of what items go to which rooms in the new home. Most of her clients are seniors but some are busy younger workers who do not have the time.
Mary Francis Milligan always loved to cook. Now that her 5 kids are out of the house she put her cooking skills to use by helping busy friends and neighbors plan, pick up and cook the food they serve at parties. This led to her being asked to do so for others she did not know. She charges for her time and works within the budget her customers provide. She told us that she has handled a party as big as 50 but had to hire some help to serve and clean up. She has even put together some meals for special occasions for just a couple who wanted to celebrate in their own home.
Katy Walters always considered herself a great shopper. She knew just where to find bargains as well as those special gifts that no one else thought of. Now she uses this ability to shop for others. She works with both men and women who are either to busy to shop for gifts or things they need for their home or just don't like shopping. She receives a percent of the total cost of what she buys but has a minimum charge for her time. She also returns and exchanges things for her customers but cautions she does not provide this service by itself.
Franklin Bhaumer has been a dog lover all his life but as he got older he found he did not have the strength to lift his 65 pound dog into his car. This gave him the idea to start a pet transport business. He purchased a van and hired some high school kids to help with the lifting and now transports larger dogs to and from the vet or where ever their owners so desire. Because of demand he is expanding his business and plans to purchase an old ambulance which can not only be used for just transport but also to move sick or infirm dogs and with the aid of veterinary assistants, keep the dogs comfortable on the way to the vets.
Franchises
Franchising is the practice of using another firm's successful business model. Franchising gives you the opportunity to own your own business while skipping some of the more detailed steps. According to the International Franchise Association approximately 4% of all businesses in the United States are franchisee-worked.
Due diligence is necessary when purchasing a franchise and there are often substantial costs over and above the costs of license and franchise fees and operating manuals. Most franchisors require a monthly technology and or marketing fee as well as taking a percentage of sales. Don’t assume that you will spend all your time working out of your home. A substantial amount of time for most of these businesses is required outside of the home. If you are interested in starting a business later in life or after you have “retired” from the work you have been doing for many years there are a number of reasons to consider investing in a franchise.
Due diligence is necessary when purchasing a franchise and there are often substantial costs over and above the costs of license and franchise fees and operating manuals. Most franchisors require a monthly technology and or marketing fee as well as taking a percentage of sales. Don’t assume that you will spend all your time working out of your home. A substantial amount of time for most of these businesses is required outside of the home. If you are interested in starting a business later in life or after you have “retired” from the work you have been doing for many years there are a number of reasons to consider investing in a franchise.
- Improved your chances of financial success; typically, success with a franchise business is better than an individual start up.
- Easier to get funding ; most franchises will assist you get financing.
- Time to profit is generally shorter. Most franchises are like to be profitable more quickly than an individual startup. Also because franchises are known entities they are easier to sell and their resell time is significantly shorter.
- Ease of start up; a franchise is like a business in a box. Franchisors provide you with just about everything you need to get started and provide training as well as operational manuals and operating instructions.
- Purchasing a franchise is generally a safer investment for older Americans and retirees. You can select from thousands of franchise businesses that best meet your interest, experience, available time, money you can invest and money you expect your business to generate