The Maverick Entrepreneur™ Series
What Baby Boomers Should Know Before Starting a Home Based Business
by STC Staff Writer
Don’t quit your day job just yet.
If you are a baby boomer looking to start a home business, there are basically five preliminary essential things you must do first. Leaving the security of a job with established 401(k) plans, health insurance or other benefits can create a real mental and emotional tug of war for baby boomers who want to pursue their dreams of owning their own business.
Analyze Your Exit Strategy
At the time of this writing in 2019, Baby Boomers were Born from 1946 to1964 (55-73 years old). No matter where you fall into this group, analyzing and preparing your exit strategy from your job will be crucial to your long-term success as a home business entrepreneur.
Do you have adequate savings to cover your business start-up and personal living expenses? If you’re married, will you be able to participate in your spouse’s health insurance if she’s still working? If you’re retired on Social Security, are you receiving Medicare benefits?
Create a Financial Plan
How much is your salary now? What are your fixed, variable and frivolous expenses? Creating a solid plan so that you and your family will know exactly what the financial picture will be until your business gets off the ground and starts generating revenue.
Choosing a Business Model and Legal Entity
There are several business models to choose from; home party plans, consulting, and affiliate marketing to name a few. You have to make the decision based on your personality and what you are best suited for. Choosing a legal entity for your business should be discussed with a tax accountant or your attorney. Options are a sole proprietor, LLC or Subchapter Corporation.
Set Business Benchmarks
You wouldn’t travel across the country without a road map; your business is the same. Setting financial and business-building benchmarks will help you to create a focused plan that will help you reach your success goals.
Get a Physical
What does getting a physical have to do with your business? Once you leave your job, most likely your health insurance will change and as unfair as it may be, trying to get new health insurance when in your 40’s, ’50s or ’60s can be difficult, and priced out of reach under your new living situation.
While pursuing your dreams of a home business is something you are probably very passionate about, if you do not have good health to enjoy the rewards of your efforts, then not much else is important.
The baby boomer generation is like no other before it or after it.
Technically, we are considered middle-aged or in our twilight years. But we are anything but middle-aged in mind, body, and spirit. We know there is more meaning to life than a commute to an unrewarding 9-5 job, but there are also essential steps we must take first. Planning and preparing for your home business now will lead to less headache’s later on.
The process of searching for, and starting a new business can be a dangerous proposition eliminating scams for real positive income opportunities.
You must have the basic personal requirements needed to start a new business. This means education, resources, time, and dedication on your part. With your age, you understand what life requires of you, and everything requires proper decision making, risk analysis, and the ability to solve problematic business problems as they arise.
Entrepreneurship isn’t for everyone. It takes a thick skin, good communication skills, the ability and dedication to learn new things. I’m 72, and believe me I am sensitively attuned to what it takes to run a real local brick-and-mortar or online home business.
But once you have done your due diligence and research, and you know you have the ability and tenacity to get the job done, it’s time to stop talking about it and “GO FOR IT.”
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