Booming to start a business

I’ve seen a wide range of people who are bit older who are starting new businesses. Sometimes it’s because a person is laid off and sees a lack of job opportunities which reward experience and maturity.

Sometimes people are just burned out in their current careers, and looking to expand into new and exciting areas. Or perhaps they’ve been thinking about pursuing a passion that they’ve wondered about for many years.

It’s a common scenario these days, and will only grow as more baby boomers seek quasi-retirement and the economy continues to revive.

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If you’re pondering this yourself, here are some useful ideas to work on.

First: It’s useful to give yourself more time, as it lets you think through options, save up a bit more money, and test the waters. Five years isn’t too long – that’s essentially what I did before moving into business coaching. But even six months’ investment can be highly valuable.

Second: Examine a variety of ways that you might bring your idea to fruition. You could buy a franchise or an entire company. You could start a new company or go into partnership. You could engage in it as a hobby, not intending to make an income. And there’s a lot more models out there which might be a great fit for where you want to go.

Third: Create a cushion of savings. This will provide you with seed money without borrowing, give you time to learn as your venture grows, and give you more ability to make long-term decisions rather than becoming frantic.

Fourth: You may have to switch from an “employee mindset” to a “business owner’s mindset.” You’ll have to learn about a bunch of areas that you’ve never worried about before. But more important, your decisions will shift when you realize that nobody is going to pay you just because you do a good job. Customers will give you their hard-earned cash only when you solve important problems for them.

Fifth: Most scenarios require that you become a super-salesperson. That might be to investors, partners, employees, or customers. But your livelihood will probably be directly related to whether you can sell your ideas and products. Continuously. This can be a hard lesson for people to learn, but beware of thinking that your idea or product “sells itself.” That’s never true.

All of this may sound like I’m trying to discourage you from venturing out on your own. That’s not the case – I’ve seen many people who are re-energized and ecstatic with their choices. They’re learning that hard work can be fun and gratifying when you believe in what you do.

There’s a lot of help out there for people who are starting up, so don’t think that you have to figure it all out from scratch. Don’t just follow your passion without putting a solid business plan behind it.

Start with the Small Business Development Center, the excellent business research section of our local library, industry reports, and people who have done something similar. I recommend that you get engaged with your target market and industry, so you can start seeing what it looks like from the inside.

If you’re thinking about buying a franchise or a company, there are experts who focus exclusively on these options. They’ll help you find the option which meets your specific goals. More importantly, they’ll teach you how to think through the decision. This will help you identify your own blind spots and assumptions.

A business coach can be quite valuable if you’re trying to create your business plan. Some coaches and consultants may have valuable industry expertise, but you may not want to be so narrowly focused that you miss your personal goals. Especially if you want to explore something innovative and unique, you’ll want to work with someone who can help you think outside the current boundaries of your industry.

There’s a very real danger if you wait until you lose your current job before starting this work. If it’s going to take you three years’ investment before you can start gaining a reliable income, will you have enough money in savings to tide you over? And three years can be a short time for many kinds of businesses.

Instead, get the process started now, while you have some income. Start building on that idea that’s been nagging you for years now, and look at whether it will be possible to succeed. Take the time to learn, grow, and adapt to changing conditions.

Then, if and when you retire or get laid off, you’ll be able to move into your next venture much more easily.

Carl Dierschow is a Small Fish Business Coach based in Fort Collins. His website is www.smallfish.us.