Heading towards retirement?
If you’re aged 55 or older, you might be thinking about the options available to you as you move onto the next stage of your life. However, it’s important to remember that there’s no age barrier for those ready and equipped to start a new business.
Whether you specialise in finance or manufacturing, it’s worth knowing the perks, challenges, and success stories associated with becoming an entrepreneur before you retire.
The rise of late-career entrepreneurs
Recent years have evidenced a clear paradigm shift towards late-career entrepreneurship.
According to recent research by Startups.co.uk, most entrepreneurs are in their 40s. Perhaps surprisingly, over a quarter (26%) of small business employer owners are aged between 55 and 64: that’s even more than those in the 35-44 category.
Industry expertise and decades of experience play an important role in the success of those who start a business close to retirement.
The challenges of starting a business later
As with any business venture, there are various potential challenges to rise to for those setting up after 55. While many of these can be overcome with experience, specialist support may be required in other key areas. These include:
- The learning curve: For many, the hardest step involved in starting a post-career business venture is finding out what you don’t know. Industry knowledge can only carry a first-time entrepreneur so far, with the whole process being easier for those who’ve launched a company – or several companies – before.
- Juggled commitments: As you prepare to retire from your first career, you might still be sorting out some important life admin. When it comes to pensions, family life and finances, it’s important to get organised using various tools and strategies. For example, using an equity release calculator could help you free up vital funds.
- Limited time: By starting at the end of your career, you face a finite time horizon to build and grow your business. You also face the competition of younger employees, who benefit from increased time and networking to seize growth opportunities. This restriction can influence long-term strategies and your plans for retirement too!
What are the benefits of entrepreneurship after 55?
Of course, once the teething problems have resolved and business operations are smoothly underway, there are so many benefits to becoming your own boss. These include:
- Knowledge and experience: Your career will give you confidence. You’ll have stronger financial health than someone just starting out after graduating, and you’ll be able to manifest your passion into a profitable mission.
- Perspective: Don’t underestimate the value of your history at work. When you’re used to meeting tight deadlines, coping in high-pressure situations and reaching a compromise for demanding clients, you’ll breeze through some of the vital first steps as an entrepreneur.
- Partnerships: If you’ve already spent your career in a professional environment, it’s likely that you’ll have some fantastic contacts. With a thoroughly developed network, you might find it easier to source business partners, investors, and key stakeholders. You’ll know the best avenues for marketing to clients, too.
Overview
If you’re in a position to comfortably retire already, starting a business could be a fantastic decision for you.
By becoming your own boss, you’ll have the freedom to work in your own style – and at your own pace too. With support from your existing network and strength from your experience, your new business could fly.
