A recent survey by the Kauffman Foundation revealed that almost 27% of new entrepreneurs in 2017 were in the 55 to 64 age group. These statistics prove that the baby boomer generation is focusing on entrepreneurship instead of retirement. Many older people who have had successful careers want to utilize their experiences and expertise by venturing into businesses. Even as baby boomers try to remain active in entrepreneurship, it is important for them to know the essential steps that need to be followed in order to establish a successful business.
Identify a good business idea
Choosing a niche to focus your business on can sometimes be a tough decision. You can start by looking at what you are passionate about. Is it marketable? Can it be profitable? Do you have the necessary skills to make the business successful? If you are drawing a blank, some research and market analysis can help you in making a decision. A good research example would be to search the internet for let’s say restaurants that cater for vegans in your area. If there is few or none, this may be a good opportunity to start a vegan restaurant.
Looking for capital
It can take as long as 5 years to get a business up running. Before you retire early, there are factors that you need to consider. How much will it cost to keep your business running? Will you need to employ people? What will be the cost of equipment and inventory? If you find it difficult managing all these issues, consulting with an expert can enable you to formulate a financial plan. Working for an extra year while gathering capital for your business can also be an option. If you have debts, you need to clear them lest you find it difficult being flexible with your budget.
Marketing your business
If you’re going to market your business, you should learn how to use social media platforms and business websites in more effective ways that can enable you to attract more customers. Not sure where to start? WordPress can easily be used to make a business website. It is important to inform everyone around you about your new venture as this will boost your marketing efforts through word-of-mouth. If you are running a brick-and-mortar business, running local ads and partnering with nearby businesses will boost your marketing effort while reducing advertising costs.
Once customers start trickling in, your business will generate revenue. It is necessary for you to learn some accounting skills in order to send invoices and receive payments. Hiring a part-time accountant can also be beneficial to maintaining your finances. This will also minimize mistakes that can cause huge losses. As a retiree, you are probably familiar with tax obligations and so this also applies when running businesses. You will be required to make sales tax payments if applicable by your state.
Your business’ future after you leave
If you reach the age of 75, you may decide to hang up your boots. This means your should have a plan for your business, whether to leave the business to your children, shut it down, sell it, or employ someone to run it for you.
A business can enable you to acquire skills and experience even after you retire, so it may be a good idea to start one. You may experience setbacks in the beginning, but you can be successful in the long run.