There’s an old adage that states that life begins after the 40s. Indeed, it does, because till the age of 40, we’re all working hard to advance our careers, grow our assets and settle in life. From the age of 40 onwards, we hope to take things in a relaxed manner and reduce the stress of all these earlier years.
At the same time, 40s is also a good time to start your own business. That’s because we would have enough experience in the field where we work and have adequate contacts too that could help out, if necessary, in the business.
Furthermore, most of us are worried about retirement. Often, we find we might not have enough money for those golden years when we wouldn’t normally have an active income. In such cases, a business is ideal because it assures us of a lifelong income as well as keeps us busy when we leave employment.
Therefore, there’re quite a few advantages of starting your own business in your 40s. But to get things right and ensure that your business succeeds, some things are very important. In this article, I will discuss the nine most effective tips for starting your own business in your 40s.
Nine Effective Tips to Start Business in 40s
Starting your own business in your 40s has some advantages as well as disadvantages. One of the greatest disadvantages lies with age. An entrepreneur in their 20s would have enough years ahead to turn around the business if it runs into losses or even close it and look for jobs. That’s not always possible in the 40s.
Therefore, if you’re planning on becoming an entrepreneur and launching your own business in your 40s, follow these nine simple tips.
Define Own Niche for Business
The first and perhaps the most important thing to do if you’re starting a business in your 40s is to define the niche for the business. That’s because you would have enough experience in a specific industry by the time you attain the age of 40. You could use this experience and your skills for the business. However, to succeed in the business, you need to define the type of products or services you’ll provide. This, in turn, helps you to identify the market for your business and target them accordingly. Having a niche also helps you focus the efforts of your business in a particular geographical area and population.
Make a Business Plan
For every business to succeed, you require a good business plan. Because a business plan serves as a roadmap for your enterprise. A good business plan should define everything such as the intended market, short-term, mid-term, and long-term goals for the business, projections about the profit, and other details. You’ll also have to outline how you would go about achieving these goals for your business and the resources that would be necessary. To succeed in your business, you need to stick to the business plan. At the same time, the business plan should be flexible enough to turn around, if you encounter any difficulties in the business.
Never Leave Your Job
Never leave your present job to become an entrepreneur. That’s because it takes anything between one and two years for any new business to succeed and start making profits. Till that time, you would require a steady source of income, which comes from a fixed job. A lot of entrepreneurs throw away their stable jobs hoping to make enough profits in the first year itself. Making profits in the first year is possible only if you have some unique business that offers exclusive services and products that are in high demand. I don’t mean to discourage you but anything between 60 percent and 90 percent of all new businesses flounders and fail during the first two years. Therefore, till you’re making enough profits, never leave your present employment.
This is the toughest part of starting your own business in your 40s. And that’s finding investors. Here, I would recommend that you look for investors because digging into your savings and investments isn’t advisable. After all, your savings and investments are a result of your hard work and efforts over a period of years. Should your business fail for any reason, you might lose a lifetime of savings and investments. There’re several ways to find investors such as venture capitalists. However, for a business in your 40s, I would suggest you look for money from crowdfunding. That’s because it’s easy to raise money through crowdfunding if you’ve got an excellent business plan and all you need to give investors in return are some products and services.
Train Your Family
As I mentioned earlier, leaving your present employment that provides a stable income can be financially disastrous for the family and you. At the same time, it means that you wouldn’t have the necessary time to dedicate to your new business. Therefore, the best thing to do is train your family members to operate the business while you’re at your job. This would take some time and effort on your part. However, it’s better than hiring outsiders that might not pay enough attention to the new business that it merits in the starting phases. Training family members to run the business also helps you trim the payroll. Of course, you can compensate your family members when you start making profits but enlisting their help is vital in the initial stages.
Go for Online Business
As you’re aware, we’re all living in the new normal when most things are done online. Therefore, whatever the nature of your business, ensure that it is online. Nowadays, offline businesses are experiencing a shortage of customers and hence, lower profits. There’re plenty of online business ideas that you could consider. Some of these superb online business ideas can help you start registering profits quickly. Furthermore, an online business is easier to set up and operate when compared to offline ones. You can also promote an online business economically, through online ads and social media pages which aren’t possible with offline businesses.
Create a Business Blog
About 90 percent of all consumers read blogs during the initial phases of buying anything. The reason is simple: they trust independent blogs more than company websites. And they expect blogs to provide honest reviews about something they wish to buy. When you’re in your 40s and become an entrepreneur, it’s very important to generate as many leads as possible that can be converted as customers. That’s because you need to start registering profits quickly. And a superb business blog can tilt the balance in your favor by influencing a customer to purchase from your business.
Outsource Difficult and Vital Tasks
You wouldn’t have all the skills that are necessary to open and operate your business. Therefore, the best way to bridge this skills gap is by outsourcing difficult and vital tasks to freelancers. There Are several superb freelancing platforms where you can find some excellent freelancers that would be able to provide the necessary services. Since freelancers work on projects and assignment basis, you needn’t hire anyone permanently on your payroll for such one-off and tough tasks. You can easily identify such tough tasks when you make a business plan.
Trial Run of Your Business
Before you enter the market as a full-fledged business, it’s always advisable to do a brief trial run. A proper trial run allows you to find loopholes in your business model and plug them before you enter the market. You would come across several grey areas in your business during the trial run. And if you leave them unattended, the business could run into losses. Usually, a trial run is over a period of three to four weeks. You might find problems in service or product deliveries, after-sales services, and even in payment systems or any other field of the business. Plug these loopholes as soon as you notice them before launching your business.
Starting your own business in your 40s is not difficult as long as you go about doing it in the right way. This means not taking many risks that can put your personal finances in danger. You can follow these nine tips that I’ve provided to successfully launch a business in your 40s and make the best of your entrepreneurial skills.