For many over 50s the idea of starting and running a business is a very attractive prospect. You can be your own boss, work your own hours, achieve things which are meaningful to you.
Yet few over 50s have had any experience of working for themselves and although the barriers to starting up are minimal, the risks involved can be huge. Across the board, the majority of start-up businesses fail within the first one to three years, often due to simple reasons such as cash-flow problems.
So the best business idea in the world and a huge amount of knowledge and skill won’t necessarily result in success if you haven’t got the basics right.
According to government statistics the over 50s represent the fastest growing sector for business start-ups and self-employment. It makes sense in many ways and can represent a great option for people who want to keep working but also want to increase their flexibility, freedom, and sense of purpose in respect of what they do.
Consultancy businesses are a great option for the over 50s as it allows them to utilise their existing skills and to “give back” without having the risk of a large financial investment, stock, and ongoing overheads. Many people start their business from home for the same reason.
“Lifestyle” businesses which basically are founded around a core interest such as photography, gardening, cookery, are also popular.
The common underlying factor for both types – or indeed any other type of business you are thinking of starting at this age – is that you have to be deeply and passionately interested in it. You’re going to need to commit a huge amount of your time and effort – and a not inconsiderable amount of money – on an ongoing basis if you want to succeed, so if you’re not that interested, you’ll really struggle.
Another key point at this time of life is to check out what your partner and family think of the idea well before you get too far down the line. At the very least you don’t want to be battling their resentment or disapproval (“I thought you were going to retire and we were going to travel”), and in the best case scenario they can be a great source of ongoing emotional and practical support.
Researching the practicalities and pitfallsInformation on the practicalities of setting up a business in terms of structure, tax implications, employment law, health and safety, and so on, isn’t difficult to come by and as with many things, you can do a considerable amount of research on the web (where possible go to official government sites for advice rather than getting the information second hand).
However advice on the less well-known pluses and pitfalls of starting a small business in later life, the key issues to be aware of, and what you need to be wary of in terms of such matters as stress, loss of confidence, and the fall out from poor investments, can be somewhat thinner on the ground.
This being the case, if at all possible try and speak to other older people who have started up businesses and find out their experiences (bear in mind that human nature does tend to put a positive spin on things however, so don’t believe that everything is quite as rosy as it may be painted).
Click here for more information about starting and sustaining a small business over 50
