{"id":6703,"date":"2018-01-07T07:51:38","date_gmt":"2018-01-07T11:51:38","guid":{"rendered":"https:\/\/kerryhannon.com\/?p=6703"},"modified":"2018-01-07T07:51:38","modified_gmt":"2018-01-07T11:51:38","slug":"tips-for-women-50-eager-to-start-a-business","status":"publish","type":"post","link":"https:\/\/kerryhannon.com\/?p=6703","title":{"rendered":"Tips for Women 50+ Eager to Start a Business"},"content":{"rendered":"
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\"\"<\/a>Nearly every week, I get an email or a call from a woman interested in starting a business and looking for advice. Generally, she\u2019s over 50. Often, I suspect, she\u2019s frustrated by a job hunt and has decided \u201cwhat the heck, I have something I\u2019ve always wanted to do and maybe the universe is trying to tell me something.\u201d<\/p>\n<\/header>\n

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If you\u2019re a woman 50+ thinking of becoming your own boss, I say: go for it.<\/p>\n

I\u2019m not the only one.\u00a0David Deeds<\/a>, the Schulze Professor of Entrepreneurship at the University of St. Thomas in Minneapolis, believes women over 50 are well suited to starting their own businesses. \u201cFirst, they are willing to learn,\u201d says Deeds. \u201cMen, as we get older, tend to be set in our ways. Women, in general, are more open to learning and are collaborative. Entrepreneurship is a team sport, and women are good at working with others. That gives them a little advantage.\u201d<\/p>\n

Describing older entrepreneurs, Elizabeth Isele, founder and CEO of the\u00a0Global Institute for Experienced Entrepreneurship<\/a>\u00a0and a\u00a02017 Next Avenue Influencer in Aging<\/a>\u00a0says: \u201cTalk about power and promise. Today\u2019s senior entrepreneurs are dynamic economic engines. As they launch new businesses and create jobs, they\u2019re revitalizing our economy.\u201d<\/p><\/blockquote>\n

My conversations with blooming boomer women entrepreneurs inspire me for lots of reasons. But mostly it\u2019s the aura of possibility and the creative thinking that surrounds them.<\/p>\n

\"\"<\/a>Working as your own boss in your dream field can sound romantic. But, truth is, it\u2019s not always dreamy, as I write in my new book\u00a0Great Jobs for Everyone 50: Finding Work That Keeps You Happy and Healthy\u2026and Pays the Bills<\/em>.<\/a><\/p>\n

There are start-up costs, and chances are, you won\u2019t even be able to pay yourself a salary for the first year or so. Also, you might shrink your retirement savings if you dip into them to pay your bill. And, of course, you won\u2019t have as much time to rebuild the savings as you would a decade ago.<\/p>\n

But I don\u2019t want to sound overly gloomy. With years of experience, you\u2019re far more prepared to launch than a 20-something. Starting a business later in life lets you take advantage of the business experience you\u2019ve built up, your network of connections and your road warrior-honed competitive skills.<\/p>\n

Read on Forbes<\/a><\/strong><\/p>\n

I\u2019ve interviewed hundreds of older entrepreneurs and profiled some of their success stories in my book\u00a0What\u2019s Next?<\/em>\u00a0<\/a>and I\u2019m always struck by their confidence, tenacity and hope. For most, the reward is an inner payout that blows right by any financial struggles and setbacks.<\/p>\n

Your ultimate success in running a small business will come from having a clear vision. Before you get started, ask yourself: How much time can I really devote to it? How flexible do I want it to be?<\/p>\n

7 Tips for Prospective Women Entrepreneurs<\/h3>\n

After that, I suggest following these seven tips, some of which come from\u00a0Great Jobs for Everyone 50+<\/em>\u00a0and some from Deeds:<\/p>\n

1. Do the prep work.<\/strong>\u00a0Find a mentor, someone you know who could guide you along your new path. If you\u2019re lacking skills in marketing or finance, sign up for a community college or certification program. You might contact your area Small Business Development Center for assistance, too.<\/p>\n

2. Spend a lot of time talking to your future customers<\/strong>. You need to really learn what their needs are and what their wants are, says Deeds. This is a brand-building exercise. You\u2019re letting people know you are going to be starting a business. Conversing with them will help you learn about positioning and how to address the market.<\/p>\n

3. Seek out virtual advice.<\/strong>\u00a0Alice<\/a>\u00a0is a new, free (for now) virtual platform using artificial intelligence to connect female entrepreneurs with other business owners, government resources, potential funders and mentors. You enter your profile based on your industry, start-up stage, revenue, and location. Alice then curates your needs based on what you\u2019re looking for. I wrote about the platform in this\u00a0column<\/a>.<\/p>\n

The virtual mentoring service\u00a0PivotPlanet.com<\/a>\u00a0lets you consult with advisers through one-on-one video and phone conferences. It\u2019s designed to help build a concrete mentor relationship that can evolve over a series of sessions at regular intervals and on an as-needed basis. These meetings are billed hourly and can range in price from $60 to $120.<\/p>\n

4. Write a business plan<\/strong>. In general, a simple plan \u2014 which you\u2019ll have to submit to get financing \u2014 should be about 20 pages. Your business plan will include a summary of what your company will do, who the customers will be, why you are qualified to run it, how you\u2019ll sell your goods and services and your company\u2019s financial outlook. You will need a detailed description of the business, its location, your management team and your staffing requirements as well as a market analysis about your industry and competition and your sales and promotional strategy to reach your customers or clients. Finally, the business plan must have a realistic forecast of start-up outlays and how much you expect to sell and to earn.<\/p>\n

5. Get your personal finances in order.<\/strong>\u00a0When you start a business, Deeds notes, your personal finances and business finances are inseparable. Think through how much money you will need every month to run the business and for your personal life. Then, prepare accordingly. Pare down personal expenditures ahead of time, to prepare for that year or two before you start earning income.<\/p>\n

6. Line up sources of funding<\/strong>. Most startups are funded with personal savings. It\u2019s advisable to set aside at least six months of fixed living expenses, though. Try not to dip into your retirement savings; you\u2019ll be subject to withdrawal penalties and income taxes and will lose the tax-deferred compounding that could serve you well in retirement.<\/p>\n

If friends or relatives will lend you money interest-free or at a low rate, get the terms in writing. That way, you\u2019ll avoid potential misunderstandings about interest and repayment. Tread lightly if you think borrowing this way might have the possibility of turning ugly.<\/p>\n

You may want to pursue an economic development program for financing. For example, you could try getting your firm certified by the\u00a0Women\u2019s Business Enterprise National Council<\/a>\u00a0as a woman-owned business; that can help you qualify for money available only to companies with that designation.<\/p>\n

Also, check out the Small Business Administration\u2019s\u00a0network<\/a>\u00a0of nearly 100 Women\u2019s Business Centers around the country. These offer state, local, and private grant information to women interested in starting for-profit or nonprofit businesses.<\/p>\n

7. Pay attention to your accounting and taxes.<\/strong>\u00a0Deeds suggests using simple, straightforward software such as QuickBooks. If you\u2019re doing retail, he adds, make sure you understand sales tax law. The more familiar you are with small business taxes at the beginning, the fewer tax headaches you\u2019ll have in the future.<\/p>\n

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By\u00a0Kerry Hannon\u00a0\u00a0<\/a><\/span>Entrepreneurship Expert<\/span><\/p>\n

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Kerry Hannon has covered personal finance, retirement and careers for The New York Times, Forbes, Money, U.S. News & World Report and USA Today, among other publications. She is the author of a dozen books including\u00a0Money Confidence: Really Smart Financial Moves for Newly Single Women<\/em><\/a>,\u00a0\u00a0Great Jobs for Everyone 50+: Finding Work That Keeps You Happy<\/em>\u00a0and Healthy…and Pays the Bills<\/em><\/a>,\u00a0Getting the Job You Want After 50<\/a>,<\/em>\u00a0Love Your Job: The New Rules for Career Happiness\u00a0<\/a><\/em>and\u00a0What’s Next? Finding Your Passion and Your Dream Job in Your Forties, Fifties and Beyond<\/em><\/a>. Her website is\u00a0kerryhannon.com<\/a>. Follow her on Twitter\u00a0@kerryhannon<\/a>.<\/div>\n<\/div>\n<\/div>\n

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