Nancy Strojny, chair of the Maine chapter of SCORE, a non-profit that offers mentoring to aspiring business owners said: "In reality, it's never the idea, it's always the execution."
I am inclined to flip the statement above and offer that many successful businesses are actually copies of other, similar businesses. Failure most commonly results due to a lack of - or simply poor - execution of a well thought-out plan.
To this end, one doesn't really need a new idea, but rather the ability to execute. There are examples aplenty in the marketplace, in as much as there are many successful burger joints, plenty of similar cars to choose from, etc. In fact, no single idea that is unique, and that creates a foundation for a new business, stays that way for very long!
So, in order to become an entrepreneur, even a part-time, self-employed entrepreneur, it is worthwhile considering these tips:
- Prepare relentlessly. Plan and prepare, achieve buy-in from your family, assess your skills to ensure a fit between your abilities and your plans. Know your market, know your competitors, potential customers, etc.
- Network. This helps unearth new ideas. Constant dialogue with like-minded people will help you to interpret your potential customers' thoughts and feelings about your proposed plans, and your product/service before, and after your business is up and running.
- Accept advice: It doesn't matter how good YOU think your product or service is... others need to want it in order for you to succeed. One way to achieve this buy-in is to make sure others rate your proposed product/service at least as high, or higher than you do.
- How much can you afford to lose (or invest)? This is a critical step. Do not invest everything you have in one, singular venture. Diversification means that you derive income from multiple sources; the work you do, property you own, stocks/bonds, a viable business, i.e. other assets. Simply put, don't e.g. cash your 401(k) savings to start a new business! Create a budget, allocate seed capital to your new venture, and live within your budget (you do have a budget already, don't you?).
- Consider an exit strategy. Say what? Yes, think ahead whether someone would be able to take over the business from you one day (e.g. your child), whether you'd be able to sell it in order to retire, etc. For example, if you're a single-person consultant, you will not be able to sell your business, because you are the business. On the other hand, if you have the legal right to distribute products - even as a sole proprietor - someone else could acquire the distribution rights from you at a price, allowing them to distribute those products in the future.
- If you have cash on hand to invest in a turn-key business, consider buying a franchise. Because the franchisor (who sells you the franchise rights) has already successfully 'packaged' everything you need to start the business, including teaching you how to be successful, etc. Your chances of success may be better, and you'd ramp up faster in terms of learning the ins-and-outs of your new business.
- And finally, make sure you understand the legal requirements, local compliance requirements, etc. It's important to know that your business fits the zoning regulations of the building you may want to lease, your insurance requirements in the event that you are dealing with people, the taxes you would be subject to, licenses you require, etc.
The good news is that older adults often already have the unique skills required to start a new business. Today - according to the popular website MarketWatch - older adults represent a growing share of new entrepreneurs. The Kauffman Foundation, in their Kauffman Index of Entrepreneurial Activity, demonstrated that in 2011, nearly 50% of all entrepreneurs were in the age categories 45-54 and 55-64.
As suggested in many blog posts before... the good news is... it's never to late to start investing in yourself... but, you need to proceed cautiously, and with thorough, thoughtful planning!
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