*Guest post by Lucy Reed
You’ve spent years in a career that doesn’t fulfill you, and frankly, you’re tired of it! Now that you’re getting older, you’re serious about spending your time in ways that count.
Does that sound like you? You’re not alone: Lots of women over 50 are chasing their entrepreneurial dreams now that they have the time, confidence, and financial capital to do so.
Why Women Over 50 Start Businesses
Some women start businesses out of necessity. Older women who have recently lost a job or who are reentering the workforce find themselves disappointed by job prospects and decide to create their own opportunity. Other women discover they finally have the time and energy for a passion project now that they’re older. And with fewer people depending on them, older women have more freedom to take risks and fully commit to a business.
The Traits of Successful Female Entrepreneurs
Entrepreneurship isn’t for everyone. You have to be willing to take on financial risk, put yourself out there, and juggle a ton of responsibilities. For some people, it’s a role that comes naturally, while others have perfected the art of faking it until they make it. But if entrepreneurial traits like tenacity, dedication, and risk-taking aren’t in your playbook, business ownership might not be for you.
That doesn’t mean you have to be a cutthroat business woman or a natural salesperson to be a successful entrepreneur. Plenty of over-50 women start businesses in the nonprofit sector or become consultants and solopreneurs. However, whether you’re running a multinational corporation or a one-woman bookkeeping service, you need to be comfortable with marketing yourself and maintaining a public image.
Financial Considerations for Older Entrepreneurs
Starting a business can be a way to grow your income add to your nest egg after 50, but it’s no guarantee. Launching any business is a financial risk, and it’s even more so for women, who are likely to tap personal savings for startup capital. That’s because women entrepreneurs have a harder time than men raising startup capital for business ventures.
While it’s possible to tap retirement savings to start a business, the process is convoluted, and a mistake could lead to hefty IRS penalties. There’s also the risk that your business doesn’t succeed and the loss sets your retirement back years. Before going this route, explore other funding options like Small Business Administration microloans, alternative lenders, or even crowdfunding.
Steps to Starting a Small Business
There’s a lot of work that has to be done before getting to the fun parts of business ownership, like building a brand and pitching your product or service. If you’re interested in starting a small business, take these steps to get started.
- Assess the feasibility of your business idea. You have a great idea, but is it a profitable one? It doesn’t matter how much creativity or passion you have if you’re selling something no one wants to buy. Conduct research and surveys to evaluate who your target market is, what their needs are, and how much they’re willing to pay to have those needs met.
- Obtain licenses and permits. The licenses and permits you need depend on the nature of your business. At minimum, you’ll need to register your business and file for an EIN.
- Identify key partnerships. Strong networks make strong businesses. Establish relationships with suppliers, retailers, local businesses, and other partners who can help your business grow.
- Create a marketing plan. Websites, social media, local marketing–today’s entrepreneurs have a lot of opportunities to get their ideas in front of an audience. Before launching campaigns, determine which marketing channels are best for your target audience.
There’s no expiration date on entrepreneurship. Whether you’re 26 or 55, if you have a good idea, you can turn it into a profitable business venture. While starting a business after 40 can feel like a leap of faith, sometimes that leap is just what you need to bring purpose and passion to your life.
Remember “thisisyourbestyear”–look before you leap.
*Lucy Reed has been starting businesses since she was a kid, from the lemonade stand she opened in her parent’s drivway at age 10 to the dog walking business she started while in college. She created GigMine.co because she was inspired by the growth of the sharing economy and wanted to make it easier for entrepreneurial individuals like herself to find the gig opportunities in their areas.