Showing posts with label Entrepreneur. Show all posts
Showing posts with label Entrepreneur. Show all posts

Saturday, June 8, 2024

Tips for Starting a Business Later in Life

People become more risk-averse as they age, making the prospect of starting a new business after 50 seem overly challenging and intimidating.

However, older entrepreneurs often have a strategic edge, thanks to their years of experience, established networks, and a clearer sense of purpose.

Plus, the emotional maturity and financial stability that typically come with age enable more informed decision-making.

If you’re ready to realize your entrepreneurial dreams, learn how to do so wisely with the following tips for starting a business later in life.

Ease Into It

When you were young, you could dive head-first into new hobbies and ventures at the drop of a pin. But as an older adult, your life is probably more rooted and requires time to adjust. 

Therefore, start your business venture slowly to reduce stress and ensure a smooth transition.

Begin part-time while maintaining your current job or commitments. This will help you test the waters and evaluate the viability of your business idea without overwhelming yourself. 

Then, you can gradually increase your involvement as your confidence and understanding grow.

Limit Your Risks

Mitigating risk is always important when starting a new business, but it’s especially important later in life when you have more to lose. 

That’s why you should keep your financial exposure in check by budgeting wisely and avoiding large initial investments in unproven ideas. 

Consider options like bootstrapping or seeking smaller, more manageable forms of funding to maintain greater control and minimize potential losses.

Know the Risks of Funding

On the topic of funding, securing it for your business is one of the biggest initial expenses you’ll have. You have the option of employing a rollover for business startups (ROBS), which uses your 401(k) savings to self-fund your venture without early withdrawal penalties.

However, you’ve worked hard for your savings, and if your business goes under, it’s likely that your savings will as well if you use a rollover. Instead, small business administration (SBA) loans can be a safer option that still caters to the needs of your limited-resources business.

Regardless, you should explore the differences between ROBS and SBA loans for business startups to see which you’re most comfortable taking later in life.

Use the Latest Tech and Resources

Keeping up with the latest technology and resources becomes more difficult as we age, but it’s so important for staying competitive in business. 

Here are some tools your small business will benefit from greatly:

  • Digital marketing
  • E-commerce platforms
  • Customer relationship management (CRM) tools

These elements will streamline operations and reach a broader audience, so they’re worth learning and integrating.

Work With Advisors

Finally, consider collaborating with experienced advisors to navigate the complexities of entrepreneurship. Mentors and consultants provide valuable insights, helping you avoid common pitfalls and make informed decisions. This guidance lowers your risks, which, as we’ve discussed, is integral to entrepreneurial ventures later in life.

Starting a business later in life can be an enriching, rewarding, and lucrative experience if you’re willing to take the leap. These tips can set the stage for sustained success.

Friday, July 12, 2019

Business Management Strategies For The Entrepreneurially Challenged

In today’s dynamic business world, entrepreneurs face a ton of challenges. They need to be able to run their business from the ground up while also paving the way for potential successful ventures. It’s just as difficult as it sounds. 

Having a good strategy doesn’t come intrinsically, it requires lots of patience and learning. You have to use every resource available to you in order to better your business strategies. Here are some examples to keep in mind.

Improve customer service

Great entrepreneurs listen to their guts, while the greatest entrepreneurs simply let the customers talk. No matter where you’re at with your current business, you can never neglect the opinions of your customers. 

They are the only voices that truly matter in any line of work. They know what they like and what they don’t like. Catering to customer feedback will net you good results no matter what.

Make sure that you are able to handle the back-end support systems of your business. Elements such as delivery and order fulfillment need to be prioritized in order to keep customers happy. 

When things go wrong, you need to be able to win their trust back with good customer service. When they feel satisfied with how your business handles things, you can call it a job well done.

As the business grows, finances must evolve

Success seems like an open and shut case. Either you’re successful or you’re not. However, there’s a lot of effort that has to be invested just to take advantage of a successful business. You would be surprised at the number of businesses that are somewhat successful, but they can't handle the financial changes that come with it.

Business mentors often stress the importance of collecting outstanding debts when the ball starts rolling. When your audience reaches high numbers, consider slashing your service and product prices by at least ten per cent. This will further stimulate business and become very attractive to potential clientele. 

Customers should be given attractive offers that will benefit your company in the long run. If they are able to pay for something upfront and without delay, give them some good discounts. This type of positive reinforcement will further increase business and attract new customers, which will, in turn, lead to more positive reactions from your company.

Mentorship can help

Let’s face it, entrepreneurship is ten per cent ideas and ninety per cent experience and management. In order to be the best possible business leader, you will need knowledge that goes beyond books and infographics. The best way to learn would be to consult someone that has already gone through the gauntlet of competitive business management and come out on top.

Everyone in the business world is tangentially connected. It shouldn't be too difficult to run into someone that has the necessary knowledge and experience to give you a couple of tips here and there. 

One of the main issues that limit education in management is the fact that every business is different. No one can tell you what the perfect way to run your business is unless they've worked in that same exact field. Still, even an entrepreneur from a different field can give you some useful pointers.

One of the key things you should ask a more experienced business manager is what tools they use to make their job easier. You have to take advantage of every possible avenue to make day-to-day grunt work less time-consuming because it allows you to focus on other parts of your business. 

Some managers go the paper route and focus on schedules while letting employees in key positions run specific areas of the company, while others prefer to use business management softwares to help them run their business. The key to good business planning is finding the best tools and people to make it simpler and easier on yourself.


You can't run a business like a totalitarian monarchy. There are too many cogs in the machine for you to be able to manually control each and every single one. Think of your business as more of a feudal kingdom. You call the shots while delegating key tasks to the people who are best suited for the job. 

Even the greatest business leader in the world doesn’t have top tier knowledge in both HR and transport logistics. The wisest business manager knows exactly what he isn’t suited for. The bigger your company gets, the more likely it is that you’ll delegate just about everything.

You have to become the glue that holds the business together. Those who are closest to you in the company have to keep everyone underneath them together and so on. Make sure you’re picking individuals that are equally as ambitious and dedicated as you are. 

Unfortunately, a lot of businesses fail when loyalty is put on a higher pedestal than skill. It’s an admirable attribute, but you want to have someone that has both in positions that are crucial to your business.


Running a business is hardly sunshine and rainbows. It’s a dog-eat-dog world out there and you constantly have to be three steps ahead of the curve. When a business opportunity presents itself, you need to know how to handle it like an experienced manager. 

Even success isn’t an open-and-shut case. However, with some experience and useful pointers, you can cleverly get your company to the top of the business food chain.

Thursday, February 6, 2014

For Those 50 and Older Starting a Business is the Only Way to Have a Successfull Retirement.

If you are in your pre-retirement years you have many things to worry about. The constant barrage of headlines telling us how bad things will be for those approaching retirement doesn't help much but it has made many reconsider their career choices.

Take your pick, healthcare, Social Security, or just not enough saved; this isn't your fathers retirement. It's true today's retirees are having a harder time making ends meet. We could only wish that those were the only problems. We are also facing taking care of older parents and college age children who can't find jobs. Retirement is being postponed. Never before has so much responsibility been placed on a generation.

The Need is Real

This perfect storm of problems has awoken something that has never been seen before. Today's elder generation has bloomed into a generation of entrepreneurs. This age group has risen to the challenge of not waiting for the government or anyone else to help them, they have stepped up and taken control of their financial lives. 

You won't find this generation playing shuffle board or canasta in the clubhouse. You will find them going to work. Many have realized from the start that a successful retirement means still earning an income. They have decided to not let the increased expense of living ruin retirement. This trend is something completely new for the United States. Sitting at home waiting to collect that Social Security check is not part of their futures.

The statistics are incredible. Americans, aged 65 and older, which number 8 million people, 40% of them own a small business. Less than 10% of these businesses are 4 years old. More than 10% have just started a new business. This is according to data released by the Bureau of Labor Statistics. These figures apply to those who are still in the workforce not those who are not going to work again. 

Entrepreneurs with Experience

The current retirement generation are Baby Boomers who grew up in the 50's and 60's. They have experienced and lived with parents from the greatest generation. They were underestimated and criticized that they were living off the hard work of the previous generation. The proof is there that they are seeding the rising economy with there small business start ups.

What makes these people so able to be entrepreneurs. In comparison to their younger business start-up counterparts, older entrepreneurs have the advantage. They have more capital to invest in running a new business. They also have more knowledge of their particular industry. They also have one thing that the younger businessman doesn't have, motivation. Of course the younger man has a passion but the older entrepreneurs are highly motivated. They have been in the workforce for so many years they are in a comfortable position and their fear of failure is very low compared to a new entrepreneur.

retirement (Photo credit: 401(K) 2013)
It's not all rosy for the older business man. Over the years they may not have been in a management position. They may not have knowledge of advertising, product procurement, office operation, and even social marketing. I thought about how the older entrepreneurs could come up to speed. It's not like you need to reinvent the wheel. Running a small business is basically the same form and function independent of the product or service the business produces. 

Many business schools teach many ways to overcome the problems of starting a new business. One that I particularly like is taking on a partner. The real success of the company depends on the skills and hard work of the principles. If you think a partner will help why not get someone who has the skills and education to contribute but also has the energy and stamina to contribute. 

If you are nervous about starting a business, remember Ray Kroc started Mcdonalds at the age of 52. If he can be successful so can you. He started with one restaurant and the rest is history.

Saturday, December 28, 2013

The Bigger They Are The Harder They Can Fall

There are entrepreneurs who win all their battles but still manage to lose the war. A new company that experiences an abnormal growth spurt may sound like a dream come true, but unless the owner/manager is prepared ahead of time for such sudden success it may become a very bumpy victory indeed! The Greeks called it a Pyrrhic victory; a victory that almost costs more than defeat. The kind of victory an entrepreneur can’t afford to have if he or she wants to nurture his or her business into a solid, stable enterprise.

Of course, there are those entrepreneurs who relish the high seas of uncertainty and the piratical gamble of unstructured and unsupervised growth, thinking such things are recognized world-wide as a sure sign of success; but this kind of operation almost inevitably succumbs to the workaday realities of the business world and then founders, leaving investors and employees high and dry.

What are the specific challenges a new, fast-growth company faces in today’s business climate? Gary Kunkle, a research partner at Evolution Capital Partners, has done extensive research on thousands of swift-growing companies. His data base is now enormous, and his conclusions are far-reaching and thought-provoking. Here, in a nutshell, are two of them:

· The staff can’t keep up with newer, more complex demands. When a company really takes off and its sales and services increase exponentially, the staff that could easily handle a hundred sales orders per day may not be the staff that can just as easily handle a thousand orders a day. Logistics can change in the blink of an eye, but people tend to go slowly into new territory, sticking to the tried and true methods that worked for them yesterday – not realizing that old methodologies can’t handle new challenges.

Some entrepreneurs are cold-blooded enough to simply let such staffing go, but the really smart operators are aware of the time, effort, and money it took to train their original staff in the first place, and do not want to let that talent leave – to possibly work for a competitor! So instead they train their staff from the get-go to prepare for “second-tier staffing”. This means that the current logistics manager is aware that at some future point an ‘executive’ logistics manager may be appointed, to take some of the more complex procedures off of his or her hands. The smart employee at a new company will understand this concept, and be grateful for it. According to Kunkle, it is one of the best ways to prevent high employee turnover in a new company that experiences fast growth.

· The cash flow conundrum. Let’s say your new startup strikes a bonanza when a major corporation or government agency contracts with your company to provide a huge amount of product and/or service. In order to meet this new and potentially lucrative commitment you immediately hire an additional 30 people. They go to work and soon your startup is producing the promised outcome – but you are not going to be paid for this excellent work until it is completed, finished. And that won’t be for six more months. In the meantime, where are you going to get the funds to pay those 30 new employees?

According to Kunkle, it is surprising how often a new business owner will become mesmerized by future profit potential without bothering about current fiscal needs. Such unwary entrepreneurs grow themselves into a financial bind that may end their entire company. Always anticipate the need for cash infusions, says Kunkle.

This means keeping your line of credit open and healthy, and flexible, with your bankers. Also be on the lookout for other investors who may be interested in investing in a sure thing when you can show them the big, fat contract you have just signed. And finally, there’s nothing wrong in asking your new client for a down payment for future product and services, especially if it is a government contract. Government agencies are notoriously dilatory in paying their final bills, because of the vast amount of paper work they must wade through, and, of course, the always imminent threat of another Sequester. 

Tuesday, November 19, 2013

9 Good Reasons Why 50+ Entrepreneurship is in the Cards For You

If you're in your 50s or even older, you may think that you don't have what it takes to start a business. This isn't the case at all. In fact, in some instances you may be in a better position to be an entrepreneur. Whether you succeed or not is never guaranteed, of course, but there's a good chance that you're going to be able to reach all your goals. Keep reading for some specific ways you will have an easier time of starting a new company.

50+ Entrepreneurship Makes Sense

Here's a look at nine different ways that entrepreneurship makes sense for those who are 50 years of age or older.

  1. More Experience - Because you've lived longer, you're going to have more life experience, which is really worth something in the modern world. Your 50s are one of the best times to start a business if you want to avoid mistakes. 
  2. More Resources - Being in your 50s or older, there's also a good chance you're going to have more financial resources available to you. Whether this is through savings or some other means, this can make or break a new company. 
  3. Bigger Network - Let's not forget a large network of people - which is really useful as well. This can really be useful in a lot of different ways if you're thinking of starting a company. 
  4. Personal Support - You're also likely to have more family support if you're in your 50s. If you have children there's a good chance they're going to be grown and in college, which means you have less responsibilities and can concentrate on a business. 
  5. Help Available - Additionally, the current job market should be taken into consideration. For example, a lot of recent graduates are trying hard to get a job and looking for good work. Now is a great time to hire fresh faces out of college. 
  6. Government Assistance - You may also be eligible to get assistance from the government because of your age. You'll have to check local and state places for this information, but it's not hard to do. 
  7. Internet Expansion - The Internet is growing all the time. Now's a great time for people of any age group to start their own business, but people in their 50s have an even better chance to tap into this evolving market. 
  8. More Courage - This isn't going to be true for everyone, but there's a good chance that if you've made it to your 50s, you have quite a bit of courage that you can use to overcome obstacles. 
  9. More Time - Last but not least, in your 50s there's a good chance you're going to have a lot more time to start a business.

Do you have any other tips for starting a business in your 50s? If so, leave a comment below and let us know. We love to hear from our "slightly older" readers!

Written by: Sara Xiang likes to purchase frozen rabbits online because it's easiest to feed her reptiles that way. When not working on other things, she likes to write articles to market with content online.

Tuesday, October 22, 2013

Expanding Your Business: 5 Necessary Positions to Fill to Ensure Future Growth

A business owner must look to the future and make plans accordingly. This will allow an entrepreneur to succeed without as many growing pains. To do so, a company must fill positions when anticipating growth. With that being said, here are five necessary positions to fill to ensure future growth.

Electrical engineers

When making plans for the future, many companies will need plenty of electrical engineers as they can help the organization save money and implement new strategies. Without a doubt, when a potential employee has an OU Masters Degree in Electrical Engineering, the company will have a good employee on its hands. Engineering career possibilities are huge, and a company must fill this void ahead of time.

Online marketing

It is no secret that Internet marketing has exploded in popularity in the past few years. This will continue as companies use SEO, Facebook and PPC to get more website visitors. Ideally, a business should support its marketing campaigns by hiring qualified and educated online marketing experts.


At first, some entrepreneurs do their own taxes and bookkeeping. While this is a great way to save money, a company should hire a qualified professional. With an accountant, the organization can avoid problems with tax authorities. At the same time, when using an accountant and CPA together, the business will rarely have problems with the books and should save money on taxes.

Human resources

Most small business owners cannot justify the hiring of a full-time human resources worker. As time goes on, one will need to rethink this as an HR rep can help a business avoid breaking laws and can also foster employee relations. Remember, any serious company will have a qualified HR representative that work with the business and employees to make it better for everyone.

IT specialists

When running a small office, some opt to outsource the IT tasks such as server and computer maintenance. This will work to a point. However, when a company grows, it will need a comprehensive solution and will require multiple employees to manage the tasks. Luckily, when hiring qualified IT staff members, a company can have a smooth transition and will not suffer from any serious and irrecoverable errors.

When building a business, one must realize that it is crucial to look to the future. When anticipating problems and needs, an entrepreneur can make more money, and the business will grow faster and with fewer growing pains.

Wednesday, September 18, 2013

How to Turn a Nest Egg into a Windfall - The Groundwork

Is launching a small business or a start-up the recurring character in your dreams for a brighter future... except you don’t know the first thing about casting the part? Even in this economy, however you slice it, there’s money to be made by taking the entrepreneurial big leaps - the news bulletins are awash in success stories, rags-to-riches tips and even the odd oh-no-he-didn’t gasps. What’s to say yours won’t be the next business venture that carries the day on Wall Street? 

If you don’t have money to burn - and who does, these days? - but you’re considering putting your savings on the line for the chance of striking it big, take every precaution before plunging in head-first. Remember that some failure is predictable from the get-go and so, you should consider hedging your bets as best you can before putting your head on the block. 

1. Use online tools by way of planning ahead - the gung ho and the gunshy alike stand to profit from not going into a potentially costly affair on a wing and a prayer. Sorting out your finances beforehand, accounting for the initial expenses and tallying all the risks involved in founding a company are all necessary steps. A painless, free option is resorting to the Internet as your personal go-to financial adviser, which you can learn more about through just a couple of clicks. Playing it safe (being cost-conscious) and smart (getting customized financial advice) will save you money in the future.

2. Don’t discount the helping hands - even if this might not be the best time to play the market, there are still investors out there willing to gamble on start-ups. As for your presumably scanty knowledge about the investment game, you just need to keep in mind that thinking opportunistically about any venture, however dear to your heart, is all it takes, even if you’re not used to framing decisions in an economics-centric manner. If your business objectively needs more cash than you can provide, an angel investor or a venture capitalist can certainly be approached to shore it up. Even a friend or relative might be willing to pony up, just as long as you both agree to separate your professional relationship from the personal one.

3. Look out for new developments - take the trouble to scope out what other are doing and how the industry you’ve chosen to enter is faring. If you’re not yet sure about what area to go into, the Internet will provide you with more than one good idea and if you’re tech-savvy, all the better, as there are tens of avenues to choose from (of which mobile communication is the hottest right now). Regardless how advanced the industry of your choice already is - and you can look that kind of info up online, via business data aggregators, as well as putting in the legwork and the research work needed to get a read on all the players - think outside the box on ways to improve it.

It’s only at this point that you can start fine-tuning your concept, drawing up a business model and picking a catchy name for your new company. Once you get your ducks in a row, and the financing in the bag, there’s nothing preventing you from going after your dream full speed ahead.

Thursday, August 15, 2013

4 Common Money Mistakes That New Businesses Make

So you've started a new business venture and you're no doubt feeling on top of the world. After all, nothing is more exciting that quitting your nine to five and becoming your own boss. However, it means that you now have responsibility for handling your own money matters, and although there's plenty of advice available from professionals, the ultimate decisions are up to you. Here are a few common mistakes that new business owners make in the early years, and how you can avoid them.

1. Being too optimistic

You may be keen to turn a profit in just a few months, and you may have the projections to back up your plans, but projections are just an estimate. There's no guarantee that they will come to fruition, so you can't base all your financial decisions on these goals. 
When writing projections, you need to take into account:
  • How your expenses will grow as the business does 
  • That some clients may not pay on time 
  • There may be a lull in activities 
  • Other products could make yours obsolete 
  • Some staff and resource problems are beyond your control 
It's not all doom and gloom, but it's important to think about the kind of issues that might come up, and to build a safety net into your projections to soften the blow. 

2. Growing too fast

When the orders start pouring in, it's no doubt tempting to hire extra staff, upgrade your machines, or even open a second branch. However, it's important that you think through major decisions, and don't be swept up in the momentum of your success.
If you feel that it's time to grow, make sure you get solid financial and business development advice before you proceed. This can help you sort out the business finance you need, as well as helping you draw up a strategy for the short and long term success of your company. 

3. Hiring permanent staff straight away

Staff loyalty is important, but hiring people on permanent contracts is expensive, and it can be restrictive for new firms. It's also very hard to get rid of people if they aren't performing well, and you may discover you don't need them a few months down the line.
Whether it's industry specialists, or people to answer the phones, consider options such as using a temp agency or outsourcing work in the early days. This may seem pricier, but it can save you money as you don't need to shell out for holiday or sick pay. The best idea is to draw up a comparison of the two costs, or to get specialist HR advice. 

4. Spending too much

It may seem like an obvious one, but it's amazing how much small businesses owners can pour into their idea in the early days. Many businesses can be setup with minimal expenditure, and you often don't need top of the line tools and equipment, second hand will sometimes suffice until you have money coming in. Some business owners choose to buy a business lock and stock from someone who is moving or retiring, and this can be a great way to get everything you need for one price.
Making mistakes is all part of the process of building a business. However, it's wise to take advice from those who have come across obstacles in the past, as they will be able to tell you they overcame them. This will allow you to avoid those common mistakes, and take risks with more confidence, knowing that you've had the best advice around.

Tuesday, July 30, 2013

Jumping into Lucrative Business Opportunities

“How much I missed, simply because I was afraid of missing it.”
- Paolo Coelho

There are many times in our lives that a positive and potentially life-changing opportunity presents itself. Whether it be as overt as someone shouting into your ear, or a more subtle manifestation that you barely picked up, what follows is the gut-wrenching moment of indecision. This is a universal experienced shared by people of all time periods and geographical areas; entrepreneurs possibly experience it way more often than others.
On one hand, there are the great rewards for seizing the opportunity and coming out victorious in the endeavor, showering them with wealth, adoration from other people, and a story to tell that has a happy ending. Conversely, there is always the the downside that worries the decider. It could range from something as ephemeral as momentary embarrassment, to a major disaster that leads to absolute ruination of one’s own financial stability and reputation.

The next time you encounter what appears to be an opportunity that could result in big rewards for you and your enterprise, consider these points that they may assist you in reaching a decision that makes use of all the information at your disposal.

Research & Planning

Having an idea that erupts from your creativity is a great thing, but it must first be compared to the related facts and analyses provided by other sources. Let’s say you are inspired to get into a new industry (aquaculture), and you have come upon a new product that you think will flourish well in the market (a faster-growing variant of seaweed). This is all well and good, but lightbulb ideas and grandiose dreams of what may happen if one succeeds is certainly not enough to make this business idea of yours materialize in our reality.

If your previous background is insufficient to make you an expert in this new venture, you have to rectify that predicament by enrolling yourself in various short courses and seminars that will prepare you for this new line of business. Digging up knowledge on the internet is useful too. Consulting experts in the field (without giving too much of your plans away) could also benefit your endeavor. A little creative experimentation can also reward you with insights on your planned project.

Assessment of Status Quo

Before pouncing on something shiny on the pavement, you should always look around to see if there’s an oncoming vehicle, or perhaps another bloke/babe you might bump into while making a grab for the item in question.

Socio-economic factors, potential competition, the weather, and all other things in the environment are worth considering. Looking back at the seaweed example, if you realize that the shore area you were looking to lease for your project is already being utilized by another enterprise, then you have to alter your plans a little, or possibly just give up. I would rather you not surrender so easily, however.

Determine Available Funding

You need money to make money, after all. If you have a sufficient amount saved up and ready for your prospective business, then that’s all well and good. Some projects require more than someone’s piggy bank, however, and one would have to secure a loan from a lending institution to make it happen. Business incorporation has other associated costs and requirements, so do your homework and find out what the state requires; stay on the legal side of things.

Monday, March 4, 2013

Why You Are Never Too Old to Start a Business

It is easy to make the assumption that only young entrepreneurs with loads of ambition and a thirst for success are capable of starting their own business, but the truth is, anyone with the right mindset can start a business, even the over 50s. As the general population ages, older folk are redefining the marketplace. They might not have youth on their side, but they do have a wealth of experience and a willingness to work hard. 

Why Start A Business In Later Life?

Thanks to advances in healthcare and medicine, people in the western world are living a lot longer than their predecessors. As a result, it is not uncommon for octogenarians to be full of vigour and more than capable of extending their working life. So instead of sitting at home, bored, why not make the most of your health and get back out there and start a new business venture?

Retirement used to be something older people looked forward to. They worked hard all their lives, channelled money into a pension fund, and waited for the day they could sit back and enjoy the financial security of a regular retirement income. Unfortunately for many, a pension plan is no guarantee of enjoying a decent income in retirement, so starting a business can boost your retirement savings and help you enjoy the finer things in life.

Starting a business venture gives you a reason to get up in the morning. Retirement for some is the beginning of a downward decline, both physically and mentally, so instead of succumbing to the mental fugue of old age, stimulate your brain and enjoy the challenge of working for yourself. 

What Can Older People Bring To The Entrepreneurial World?

Older people often have decades of business experience. They may have successfully managed businesses in their younger years, which makes them well placed to repeat the experience in later life. Use the business skills you have accrued over the years and make them work for you. 

Issues To Consider When Starting A Business In Later Life

Finance is the biggest hurdle you may encounter if you wish to start a business in later life. No matter how successful you feel your business venture is likely to be, putting your retirement pot on the line might not be sensible, especially if you have dependents to consider. But if you need to secure financing from a bank or other lender, consider your options very carefully. 

Long Hours

Running a business inevitably means working long hours. This means you must be passionate about what you are doing as well as capable of putting the extra time into your embryonic venture. You will also need a strong support network in place. No matter how enthusiastic you are about your new business venture, one of the downsides of growing older is a slow reduction in energy levels. With this in mind, make sure you delegate responsibilities to others where possible and do not try and do more than you are capable of.

Frank retired ten years ago, but within twelve months he was bored silly, so he decided to start his own business. He had a wealth of experience to draw upon and he fully understood his duties as a director. Now he owns a successful family business and enjoys posting useful blogs online.

Thursday, February 28, 2013

3 Secrets to Understanding the Truth Behind Venture Capitalist Pitches

Venture capital is all about placing your faith in an entrepreneur with a strong business plan, and a great idea. Investors place their money and support behind something new, and different, hoping that it becomes the next big thing, or that at least builds to the point of profitability.

Unfortunately, a capitalist can get caught up in the excitement or emotion behind a business venture, and end up placing their money in a concept that will never get off the ground. In a buyer-beware environment, it is essential that every investor understand the truth behind venture capitalist pitches, and throw their funding and support behind something that is more likely to thrive.

1) The Story

Every pitch contains a personal story of investment. This is the part of the pitch where investors find out exactly what the product is, and what successes the entrepreneur has had in marketing up to that point. It is the section of the pitch designed to get capitalists excited and onboard with the venture. Unfortunately, the story can put the investor at risk. It is essential that the investor try to stay detached from the story, and remain emotionally neutral. Getting emotionally involved in the entrepreneur's story can lead to rash, emotion-based decision making, rather than a fact-based investment. Draw important facts from the story, but ignore any emotional pleas. If the story proves to be all emotion, and no fact, dismiss the investment.

2) Company Positioning

The pitch will try to position the company within your known holdings. Pay attention to any misrepresentation that occurs during the positioning portion of the pitch. A good investment does not have to align with an investor's other investments, if there is a sound business plan in place. If the entrepreneur seems to go out on a limb, or skew their business plan to make it fit more completely with your current portfolio, then they are not giving you an honest view of the company. Ignore any element of the pitch that specifically targets how this project fits in with your other venture capital investments. Instead, try to view the investment as a stand alone proposition, regardless of your other holdings. It should be strong enough to stand alone if it is a sound investment.

3) Overlooking Less Obvious Investments

The final element in the pitch is designed to convince investors that this product, and business plan, is far superior to its competitors. It works to make this venture look like the obvious choice. Take the time to look or less obvious choice. Many venture capitalists have missed out on a fortune because they took the larger, more obvious investment opportunity, and let what looked like a small-time entrepreneurial venture get away. Truly analyze what makes each project unique. Look for what qualities set a product or service apart from its competitors, and go with the pitch that offers the most unique and well thought out plan, regardless of size, or salesmanship.

Kevin Aldrige is a business consultant. His articles have been posted on a number of business and finance blogs. Click to visit CSS Partners for capital growth info.

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