Tips For The New “Age” Entrepreneur

According to a U.S. Labor Statistics report, there is a new generation of entrepreneurs usurping the lead in business startups. The ranks of the self-employed aged 55 - 65 rose 33% in 2006, while the number of self-employed 25 - 35 year-olds fell 2%. Furthermore, an earlier Baby Boomer survey conducted by AARP in 2003 found approximately one in three self-employed workers aged 51 - 59 transitioned to self-employment after the age of 50. This trend is not surprising considering Baby Boomers are expected to live longer and have the time, energy, desire and sometimes need to continue to be productive.

There is a whole new "age" of entrepreneurs. The entrepreneurial image of the college drop-out who founded his company at 21 (of course, I'm talking about Bill Gates); or the twenty-year-old mom whose chocolate-chip cookie recipe launched one of the most visible and successful dessert empires (who else but Mrs. Fields), is changing.

It seems there are two reasons why Baby Boomers decide to pursue an entrepreneurial path. They either have to or they want to. The "have to's" may feel they are at-risk of a corporate lay-off. They know they still need an income and are fearful of finding another job because of their stereotyped image as a "high-paid, older worker." The idea of starting their own business seems like a good option. The "want to's" want to seize this time in their lives to use their skills and experience in a whole new arena -- a chance to continue to contribute to society while following their passion.

Whether you are a "have to" or a "want to" Baby Boomer entrepreneur, you need to listen carefully to what your mind and heart are telling you. This is no time in your life to leap before you look. Think about what makes good sense and matches your financial and personal needs and expectations. Here are some ideas to get you started:

Consider Your Resources

Financial
Evaluate your current income and expenses, liquid assets and investments. Determine how much you are willing to invest and how large of a risk you are comfortable and able to take. Think long and hard about the degree of personal assets you are willing to commit as collateral, and how much you want to protect. If you need to raise money, consider how you will do this -- accumulate over a period of time through your own contributions; or tap into a network of funding sources -- family, friends, banks, private investors, government grants, etc.