Boomers are now the fastest growing segment of new entrepreneurs, according to the Kauffman Index of Entrepreneurial Activity. This is not really surprising since most boomers have the skills acquired from decades of work that are needed to start a business, and have a network in place to help them succeed.
Here are some tips for boomers who want to become entrepreneurs:
Take time to prepare. Planning and research are critical to success, and a thorough self-assessment is part of this process. You will also need to take time to examine the nature of your business and work with a qualified business lawyer to put the proper protections in place, as well as structure the business to prevent personal financial liability.
Get help. Find people who can act as objective advisers, and not just tell you what you want to hear. Be sure to consult with an experienced business attorney who can help you identify problems down the road that could potentially derail your new enterprise.
Decide how much you will invest. Decide what you can afford to invest, and however you choose to finance your business, be sure that you keep your business accounts separate from your personal finances. Mixing the two can lead to disastrous legal consequences and open you up to personal liability for business lawsuits.
Do market research. Be sure there is a market need for your product or service.
Budget realistically. You may want to start your new business from home rather than renting plush office space. Try not to tie yourself to too many fixed costs right away.
Have an exit strategy. Will your new business make money right away or will it take several years before you turn a profit? Boomers need to enter a new business with an exit strategy in mind if they want to retire at some point.
We help business owners avoid costly legal disputes through proactive business planning, including crafting agreements and procedures to ensure you comply with state and federal law. To learn more about our personal approach to business planning, call us today to schedule your comprehensive LIFT™ (legal, insurance, financial and tax) Foundation Audit.