How Old Is Too Old To Start A Business?
Contrary to popular belief, most business entrepreneurs are actually older. Yes, there are a handful of young tech billionaires, but the majority of entrepreneurs are in their fifties, sixties and even older.
This article looks at what it takes to start a business in later life and some of the considerations you will need to keep in mind.
BUSINESS START-UP ESSENTIALS
According to a survey by Australian Seniors on Aging In The Workforce, 59% of people aged 50 or over are looking to re-skill in a new area, which can include starting their own business.
But regardless of age, there are certain steps you need to follow to ensure your business has the best possible chance of succeeding.
Decide what kind of business you want – The very first thing is to settle on what kind of business you want to run. Will it be a side hustle, a hobby or an extension of your previous career? Will it be full time, part time? All these questions will need to be answered before you do anything at all.
Examine your idea – Before proceeding, put your idea under the microscope. Ask yourself the following questions:
• Do you have the necessary skills or do you need training?
• Is there a market for your idea? Is there a niche for it in the marketplace?
• Is your idea unique or are there competitors already out there?
• What makes it stand out? Does it meet a need or solve a problem?
• Is it realistic?
Create a business plan – This includes your business idea, where you plan to source your funding and a projection of your expected costs and cash flow. It should cover every aspect of your intended business from licensing to marketing to expected turnover. There are plenty of online templates to refer to if you are unsure how to formulate your plan.
Secure financing – If you have assets, you may be able to obtain a loan from a bank for your business, but other options are also available including peer-to-peer lending, crowd funding and angel investors. You may also have your own funds such as savings or super that you can afford to invest in your business.
Research your market – It’s not enough just to know who your target market is. You need to thoroughly research their behaviours and spending patterns. This can include sending out surveys and polling select groups. If your business is intended to be an extension of your previous career, you have the advantage of already knowing who your target market is and how to appeal to them.
Register your business – Your business must be registered not only for tax purposes, but also so you can trade legally. Registration will include business name, address, owner(s) and any trademarks you plan to license. Trademarks must be unique to avoid copyright infringement.
Create a website – Regardless of how tech-savvy you may or may not be, having an online presence is mandatory for any business these days. This includes a website and social media profile. You can either do this yourself or hire someone to do it for you, bearing in mind that both platforms will need to be regularly monitored and updated.
Market your business – Now that you are ready to service your target market, you need to make them aware of your presence. Marketing doesn’t have to cost an arm and a leg, and affordable forms of advertising can include flyers, local media and digital marketing via your website and social media. Word of mouth is also a powerful marketing tool and having positive reviews and feedback is vital.
THINGS TO CONSIDER
As well as following the essential steps to building your business, you’ll also need to consider the following:
· Consider a partner – if you don’t have the finances available, one option is to take on a partner. This could be a silent partner who provides funding, or an active partner such as a former colleague who is familiar with your line of business.
· Get a mentor – if the business you are planning is in a field that is new to you, think about getting professional guidance. Wherever you live, there is likely a small business assistance scheme available which provides mentorship.
· Get an accountant – once your business is up and running, it’s a good idea to outsource your finances to a professional who can handle tax matters and provide financial advice where needed.
· Draw from your experience – if your business is an extension of your former career, you have years of experience to draw from, giving you a unique advantage over younger competitors..
· Think about a franchise – while you’ll pay a fee to enter a franchise, the advantage of this is that the groundwork (i.e. marketing and customer base) has been laid and all you have to do is start running your business.
Starting a new business can be risky, but your odds of success are better if you have previous experience in your field, a network to draw on, financial padding and strong motivation to succeed. Your strong work ethic and maturity will also go a long way to ensuring your success.
