Some things improve with age and the increased number of ways you can fund your new business is one of them.
Alongside the usual methods of raising money to start a business, an entrepreneur in their 40s or 50s may be able to source funds from other areas. For example, the recent changes in pension rules now enable you to access your retirement money at the young age of 55. You can withdraw a lump sum or borrow against the value of your pension to finance your new venture. Alternatively, you may recently have received funds from being made redundant or an inheritance.
With an increased access to funds added to a wealth of experience, skills and a group of contacts, the entrepreneur aged 40 or 50 and over is in a good position to start a business.
Having an energetic interest in the new business will help drive it forward but you may also need outside help when difficult issues or specific problems arise. In the early stages, you may only require support or advice for “teething issues” but, later, it may be worthwhile to seek professional advice and strategic consultancy. For example, when turnover starts to grow quickly it’s easy to forget about climbing costs, so this is where an outsider can help you focus on profitability.
Always keep in mind that with your own business there is no regular pay packet – if you have a quiet month that will be reflected in your earnings. Consider how you will tackle this, and, don’t be afraid to seek outside support if you need it.
It may be helpful to know that “businesses started by the over-50s have higher survival rates than those of younger entrepreneurs – in some cases as much as three times”. (Cass Business School, City University London, “Unlocking the potential of UK’s Hidden Innovators.”)
Good luck with your new venture!
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