If you are thinking about starting a new business it might be best that you do it before you officially retire. There are a couple of benefits of doing so which I shall cover below.
Tips for Starting a New Business for Baby Boomers
Easier to get sources of funding
When you hold down a job it is easier to secure financing for your new business. Whether is it a business loan or going to direct lenders, you will be much more likely to get approval if you supply the necessary documentation when you have a job. When you are retired it is much tougher to secure any kind of financing, especially from banks.
Easier to get business contacts for your new business
When you are still active in the job market you are likely to meet more business-oriented people than when you are officially retired. You can take this chance to do some networking for your new business. Talk to people and see who are potential sales leads or business partners. It may be more difficult to get a meeting when you are not on official business so take the opportunity when you still have a job to secure as many meetings as you can and expand your business network.
Maintains cash flow
A new business carries a lot of uncertainties. Certain assumptions you hold might not be true. This can derail your business. As a result, if your new business doesn’t generate cash straight away you will be burning away your hard earned savings. Of course this can pretty stressful if you don’t have your job as your primary income source. Starting a new business is already a stressful event and you want to avoid adding to it by having cash flow issues as well.
The downside of holding down a job when starting a new business are the additional hours you need to put it. You have to evaluate if the benefits outweigh the cost of doing so.
Are you planning on starting a new business soon? Read these tips: