How to Become an Older Entrepreneur?

Are you too old to be an entrepreneur, to start your own business, to begin again? These are questions which, if you are in your more ‘mature’ years you have probably asked yourself, especially if you have ever nursed the dream of working for yourself.

You might have an image of an entrepreneur as young, bursting with ideas and energy. You might imagine them growing a wispy beard and working out of trendy coffee shops, whilst multi-tasking on cool online projects and taking phone calls on Skype whilst simultaneously updating their Twitter profiles. To be honest, it all sounds a bit boring, if not a bit unlikely.

Let’s flip that image on its head, just for the hell of it. Yes, our stereotypical entrepreneur might be young, but remember when we were young – we made a lot of mistakes (well, I did!) and wasted a lot of that youthful energy chasing dreams of making some quick cash (because when you are young you always seem to need money, right?). Focus, also, always seemed to be problematical to me in my youth, maybe it would be the same for a youthful entrepreneur, after all there is social media to keep up with, the never ending quest for a compatible mate and, let’s not forget the search for the perfect beer and burger combination – lots of distractions, difficult to keep one’s mind on things.

So, if being a young entrepreneur isn’t all Prosecco and selfies - joking aside. Then what about being an older entrepreneur? Does an older entrepreneur have the skills, experience and focus to build their own business?

According to Barclays Business Banking, who compiled a study of data from over one million business customers, found that the number of SMEs (Small to Medium Enterprises) owned by people over the age of 65 has grown by 140% over the last decade. In comparison, the number of SMEs run by people between the ages of 25 and 34 only grew by 23%.

This rising trend of older entrepreneurs, or ‘olderpreneurs’ shows no signs of abating, as hundreds of over 55s are seeking new challenges and building new businesses on the back of skills and knowledge gained throughout their lives, when they traditionally might be planning their retirement.

But why would you want to become an entrepreneur in your later years? You may think I’ve done my bit; I’ve worked hard all my life; I want to put my feet up and watch the grass grow for the rest of my days – and that of course is great and you should do it – if you want to. But, for some of us we might feel we have more to do and more to give. We may have been made redundant too early and struggling to find new work, we may need to bridge a financial gap until our pensions kick in, or may have a burning and so far unrealised dream that we want to put into action.

Also, there are often financial reasons for starting your own business in your 50s or later. If you have been in regular job or working your way up the corporate ladder for the last 20 odd years, then the chances are your financial commitments will be less daunting than they were in your 20s.

When we embark of our careers in our late teens early 20s, we may be saving for a house deposit, starting a family and taking on a mortgage, all on a starting salary. In or 50s, our mortgage may be finished or coming to an end, our children may have finished their educations and started their own careers – all of which means that the financial burdens may be lighter. Often there can be windfall cash, from retirement funds or redundancy payments, which can also take the financial pressure off starting a new venture.

As discussed earlier in this article, being ‘older’ has advantages – and I don’t just mean a more mature outlook. With a few decades in regular employment behind you, you will have built up a great skill set that you may be able put to work in any new business you start. You may also have built a great network of friends and colleagues who you may be able to call on to help you make your plans come to fruition.

Starting any business can be risky, even with the advantage of an older and possibly wiser head. It is important to consider the financial and legal implications of starting your business well in advance of actually launching it. Also take into consideration the lifestyle changes you want your new venture to bring about, maybe you just want to work at it part-time, or at certain times of the year. What type of business do you want to create, maybe you’ve always dreamed of creating a 'bricks’n’mortor' business like a coffee shop or a ‘Bed and Breakfast’ (by the sea), or maybe you just want to go freelance, become a consultant and continue to use the skills you have built up over a lifetime of work. All this needs careful consideration.

Whether you will be seeking finance for your new business you will need a plan, this will help solidify and test your business ideas in theory before you put them into practice. Things to consider when putting your ‘business’ plan together are: How much money does your business need to make, do you need to raise capital from a bank or other sources, what exactly will be your start-up and on-going business costs, where will you work from (home/or premises), will you need employees and who will be your competition (and who are their target customers).

These are just a few examples of the things you will need to dig into when planning your business. When doing this don’t just think short-term, consider where you want your business to be in five or even ten years, and what you want to do with it when you have had enough and finally want to retire for good, what will be your exit strategy?

Launching any business is never easy, but armed with the skills and knowledge of a lifetime it can be fulfilling as well as challenging. In the long-run the chance to be your own boss and fulfil a long-held dream is often enough to make many would be older entrepreneur go for it. Along with the potential benefits from being in charge of your own destiny, and often lower (business friendly) taxes.