Entrepreneurship can seem like a young person’s game. When you’re young, you have the freedom to fail and more time to recover from unsuccessful ventures. Meanwhile, as you get older, you tend to become more averse to taking risks.
However, there are several reasons you should consider starting a small business no matter what your age is. From valuable knowledge and experience that you’ve gained over the years to more financial stability, there are several reasons why starting a business later in life might make sense.
If you’re hesitant about pursuing the business idea that you’ve been thinking about, consider these five reasons that make starting a business at an older age a great idea.
1. You Have More Connections
First and foremost, you likely have established a vast professional network over the years. This network of professional colleagues can be invaluable when starting a new business. Throughout your professional life, you probably have established connections with people in a variety of fields. From attorneys and marketing specialists to contractors and designers, your connections can provide expert advice and services.
Many young entrepreneurs haven’t had the chance to create an expansive network and don’t yet understand the value of networking. Your connections as an older entrepreneur can give you access to many of the resources you’ll need to get your business off of the ground, and some of your contacts may even be potential customers.
2. You Have More Experience
Of course, one of the biggest advantages of being an older entrepreneur is that you have more experience than younger business owners. Even if you’ve never owned a business before, you still have much more insight into what it takes to run a successful business than you did at 20 years old.
Young entrepreneurs often don’t understand the importance of creating a detailed business plan or developing a budget. Moreover, young business owners generally don’t have much experience with basic tasks such as securing financing or performing market research. Throughout your career and personal life, there’s no doubt that you’ve accumulated a vast amount of knowledge that you can apply to your new business.
3. It is Easier Than Ever to Start a Business
The internet and social media make it easier than ever to start and grow a business. If you have internet access then you have access to a variety of tools to help start and advertise your business.
Website builders like Squarespace and Wix make it easy for amateurs to design and publish a professional business website..
Advertising services like Google AdWords and social media sites such as Facebook make it incredibly easy and affordable to increase your business’ web presence.
Social media marketing tools like Hootsuite and Buffer let you create and schedule social media content.
These tools, among others, simplify many of the challenges typically associated with starting a new business. As technology continues to improve, it is getting easier every day to start a new business.
4. Financial Stability
For young entrepreneurs, starting a new business can be a significant financial risk. In many cases, they have to invest much of their own money in addition to having to pay other bills, such as a mortgage and car payment. Of course, these factors are still present as you get older. However, you are likely much more financially secure and aware than you were in your 20s. You’ve had time to build up your savings, invest your money, and learn about other options, like working capital loans. As a result, you likely have many ways to invest in your business while minimizing risk.
Additionally, your financial stability gives you an advantage with potential investors. Many investors and lenders are hesitant to work with young entrepreneurs due to inexperience and short financial history. Older business owners are generally considered more trustworthy than their younger counterparts. This makes it much easier to secure investments and get loans with better terms.
5. You’ve Had Time to Consider Your Options
As an older entrepreneur, you’ve had more time to consider what type of business you want to start. Starting a business in a field you are passionate about can make you a much more motivated business owner.
Young entrepreneurs often know they want to start a business, but not what kind of business. As you get older, you learn what you care about and what you enjoy doing. As a result, you can create a business tailored to your interests.
Starting a new business at any age is scary. Older entrepreneurs, in particular, are often hesitant to start a new business as they believe their time has passed. However, due to better connections, more experience, financial security, and other factors, starting a business at an older age is often a great idea.
Joe Resendiz is a Research Analyst at ValuePenguin, where he focuses on personal finance and credit research to assist consumers. Previously, Joe specialized on public sector and infrastructure financing at Goldman Sachs. He graduated from the University of Texas at Austin with a BBA in Finance.
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