Q: I'm thinking about starting a business after I retire next month. I'll be 65. Am I too old to start a business? -- Milton A.
A: Milton, congratulations on your pending retirement. I find it admirable that after many years of hard work you are thinking about starting a business. While most men your age would be content to sit on the porch and watch the world go by, you are considering a ride on the entrepreneurial roller coaster. You're certainly tall enough to ride this ride, but are you too old?
Here's my standard answer: It depends. It depends on your health, your energy, your drive, your goals, and of course, your finances. If all those are in good shape and you have your spouse's approval (that's a biggie), then there is absolutely no reason why you should not start a business at your age.
In fact, the numbers are actually in your favor. According to recent studies 22 percent of men and 14 percent of women over 65 are self-employed. That's compared to just 7 percent for other age groups.
According to a Vanderbilt University study the number of entrepreneurs age 45 to 64 will grow by 15 million by 2006.
That's compared to a 4 million decline for entrepreneurs age 25 to 44.
A 1998 survey of baby boomers conducted by the American Association of Retired Persons (AARP) revealed that 80 percent of respondants planned to work beyond retirement age, and 17 percent of those planned to launch new businesses.
The study noted, "Self-employment among American workers increases with age, with the most dramatic jump occurring at age 65."
Older entrepreneurs may also find starting a business easier than their younger counterparts because older entrepreneurs tend to have more experience to draw from and more assets with which to finance a business.
Further evidence comes from a report released by Barclays Bank entitled Third Age Entrepreneurs - Profiting From Experience. The report shows that older entrepreneurs are responsible for 50 percent more business start-ups than 10 years ago. This amounts to around 60,000 business start-ups last year alone.
The survey also showed that today's third age entrepreneurs (as the report calls entrepreneurs over the age of 50) don't mind putting in the hours required to build their business. Nearly 49 percent work an average of 36 hours or more a week.
Third agers also rated holidays, lack of stress and a balance between work and home life more important than their younger counterparts.
The report further showed that only 27 percent run the business as the only source of household income, with 51 percent supplementing their pension.
Other key findings showed that third age start-ups account for 15 percent of all new businesses, and third age entrepreneurs are three times more likely to be male than female. There is a downside (isn't there always?). Many businesses fail within the first few years and older entrepreneurs may be less able to handle the financial loss than younger entrepreneurs.
It's one thing to lose everything at 25, but it's a much bigger deal to be financially ruined at 65.
So my advice, Milton, is that if your health and finances allow (and the Mrs. gives the green light) by all means start your business.
Climb on the entrepreneurial roller coaster and hang on tight.
You get the senior discount, by the way.
Just try not to lose your lunch when things get bumpy and you'll probably do just fine.
Here's to your success.
Tim Knox
Small Business Q&A is written by veteran entrepreneur and syndicated columnist, Tim Knox. Tim serves as the president and CEO of three successful technology companies and is the founder of DropshipWholesale.net, an online organization dedicated to the success of online and eBay entrepreneurs.
Related Links:
http://www.prosperityandprofits.com
http://www.smallbusinessqa.com
http://www.dropshipwholesale.net
A business owner is thoroughly responsible for their own financial... Read More
Franchising Trade Journals do not do well, because today with... Read More
Once upon a time, there was a village on the... Read More
Becoming a successful entrepreneur in the online world is no... Read More
Almost every day, I talk with people who want to... Read More
1. Isolating Yourself When setting up a business, you can... Read More
IntroductionKnowledge is the key resource that forms the institutional basis... Read More
Saving time means pacing yourself, being organized, and always prioritizing... Read More
Isn't enthusiasm a good thing? Aren't we urged to be... Read More
They're really are powerful million dollar opportunites everywhere.Ok, let me... Read More
When franchise companies are moving fast in the market place... Read More
Today, I got an email from a lady who hates... Read More
Some of us are born into families with "it", some... Read More
What I've discovered from most of my small business clients... Read More
Discover the pitfalls of owning your own business BEFORE... [you... Read More
Q: I'm graduating this year with a degree in business... Read More
Hello Creative Entrepreneurs!In the second course on Creativity & Entrepreneurship... Read More
Q: When it comes to succeeding in business, which do... Read More
Why, exactly, do you want to go into business for... Read More
DON'T talk to me about education for entrepreneurs. They're pouring... Read More
So many people work their whole life to make money,... Read More
The most successful entrepreneurs rely on their advisory boards to... Read More
If your company is like the one I work for,... Read More
Leadership is based on two words, "pressure and support"and that... Read More
In the United States we have the most efficient delivery... Read More
You have this burning desire you want to be on... Read More
What Startups Need to Get a Business Loan, Part 2In... Read More
Entrepreneurship is a great magnet to deliver new ideas, unique... Read More
Forging partnerships to improve market penetration has become commonplace, particularly... Read More
Every evening as the sun sets beyond the mangroves that... Read More
I recently took an entrepreneurial quiz which evaluated my answers... Read More
If you look up the definition of hero in Webster's,... Read More
More and more students, both in undergraduate and graduate institutions,... Read More
Q: I am interested in starting my own business. I... Read More
When raising capital for a business venture, a company can... Read More
Summary: Even with a wide variety of sources available, coming... Read More
Hair care has been around as long as humans have... Read More
I had a health scare in December.As it turns out,... Read More
They're really are powerful million dollar opportunites everywhere.Ok, let me... Read More
Does the idea of running your own business sound exciting?... Read More
There are a whole range of reasons why customers buy... Read More
It seems odd to think of a person opening a... Read More
Life as an entrepreneur is the American Dream. To be... Read More
Did you know that thousands of companies from all over... Read More
You don't have to be rock-star famous before you are... Read More
Many people who set up as consultants never make more... Read More
SUCCESSFUL Solo-Entrepreneurs approach life and business from a perspective that... Read More
Every business has to start somewhere. What truly makes this... Read More
If you want to compete in the world of high... Read More
Starting and running your own business can be exciting and... Read More
Many of us slave away for years for one uninspiring... Read More
Q: I started my business about a year ago and... Read More
I sat watching a documentary on U.S. Navy SEAL Team... Read More
We've all seen the hype: "We'll put your plan in... Read More
As a service provider, the most important type of "boundary"... Read More
When I ask why you don't start your own business,... Read More
When it comes to a startup, the luxuries shared with... Read More
If you have a business idea, or an idea for... Read More
What is it that sets a successful businessperson apart from... Read More
Almost every day, I talk with people who want to... Read More
Owning a detail shop can be an exciting and rewarding... Read More
Any success you have in life must begin with a... Read More
When a company decides that it must raise capital, a... Read More
A primary inhibitor of business start-up is that few people... Read More
Habits get a bum rap. When you think about your... Read More
For those of us who grew up with parents who... Read More
Entrepreneur |