Many people automatically think of youth when they picture an entrepreneur, but you can start a business at any age. In fact, increasing numbers of older adults are looking to retirement as not only time to rest and relax, but a time to pursue the dreams they couldn’t when they were responsible for supporting a family. If you are starting a business as a senior, many of the same guidelines that should be followed by any entrepreneur apply, but there are some differences. Keep the points below in mind as you move ahead.
One thing you need to be cognizant of is that you are in a different financial position compared to the average 25-year-old entrepreneur. You may have more capital, but you also have more to lose, and you don’t have decades to make up for losses. It’s important to think carefully about how you will fund your new endeavor and that you don’t dip into the savings that you need to live on for potentially several decades.
Of course, if all goes well, your business will generate even more money for you, but you should try to be conservative with your financial planning. The good news is that you may have assets that you no longer need that you could use for funding. If you purchased life insurance years ago to protect your minor children, they are likely grown up by now. With Q Life Settlements, you could sell your policy and put the proceeds toward your business. Many seniors choose to pursue a life settlement to improve their quality of life after retirement. Finally, make sure that you set up your business in a way that if it does not succeed, your personal finances will not be damaged. You may want to work with an attorney or a financial professional on this element.
Another important thing to consider when planning for your next stage of life is how your business will fit into your lifestyle. You may be perfectly willing to work a certain number of hours, but you may be ready to put the 60-hour work weeks behind you. If this is the case, you should make sure that you can still run your business the way you want to while working fewer hours. Consider as well what those hours will be. Your body clock has probably changed over the years, so if your idea is one that would require you to work late hours, it might not suit you.
Your Exit Strategy
You may feel as though you’re still raring to go at 65, but will you still want to keep up the same pace at 80? The answer may be yes, but it’s a good idea to have an exit strategy in mind just in case, whether it is selling your company, passing it to a family member, or just closing the doors. In addition, be sure that you revise your estate planning documents to include the business. Talking to your family about your long-term plans for the business can help ensure that they understand your wishes.