5 Smart Tips for Retirees-Turned-Entrepreneurs

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baby boomer entrepreneurs retiringHow to ensure startup success: tips for retiring entrepreneurs.

Why do a lot of baby boomers choose to establish their own business instead of spending the rest of their years playing golf or lounging by the poolside? Well, it is interesting to note that more and more people between the ages 55 and 64 are starting to establish their own businesses. In fact, studies reveal that people in this particular age group account for about 21% of all entrepreneurs in the US in 2011, up from just 14% in 1996.
Why Do Baby Boomers Go Into Business?
There are several reasons why baby boomers choose to go this route. Some want to put their years of accumulated knowledge and experience to good use while others want to earn some extra income to supplement their everyday living costs. Some simply want to stay engaged while others are forced to work for themselves because they need the increased flexibility it offers or because they are unable to find new jobs. Still, others simply want to live their dreams and believe that this is the perfect time to start their own business.
How to Succeed in Business: Some Tips for Retirees-Turned-Entrepreneurs
Since only half of all new businesses make it past their fifth year, it is extremely important for you to prepare yourself for this monumental task. How do you do it? Here are some tips that can help you achieve your goals:
Don’t jump in too quickly. Unless you are forced to start your own business due to an unforeseen circumstance, you should never take the leap without making the necessary preparations. Ask yourself first if this is how you would like to spend the rest of your years. Now, when you are sure that you are ready to commit your time and your resources to establishing your start-up, you need to update your tech skills and make sure that you have your family’s support.
Do your research. Let’s face it. Following your passion alone won’t guarantee your success, so don’t forget to study all the facets of your business. Know your market and conduct a feasibility study to ensure the viability and profitability of your chosen business. Remember, you can’t afford to make any costly mistakes since you may not have the time to get back on your feet and start all over again if you do.
Don’t tap into your nest egg. Minimize your risks by resisting the urge to dip into your retirement savings. If you need funds to start your business, consider taking out a home equity loan instead.
Tap your network. Consider using your network to get sound business advice, tap sales leads and get additional funding.
Know your exit strategy. Most businesses take about ten years before realizing any financial gains so you may need to think about your exit strategy even before you start building your business.
Starting your own business during your retirement years can be a great challenge but the rewards are definitely well worth it. Follow these tips to reduce your risks and increase your chances of success.