Starting a Business After 50: Your First Five Steps

More people are starting businesses in their fifties, sixties and beyond. Many bring decades of skills, a strong network and a clear sense of what customers need. The key is to start small, protect your savings and get good advice early.

1. Start with what you already know.

List the skills people have paid you for, the problems friends ask you to solve, and the work you enjoy. The best business ideas often sit where those three overlap.

2. Test the idea before you spend.

Offer your service to a few paying customers first. Ask what they valued and what they would change. A small test tells you more than a large investment.

3. Protect your retirement money.

Decide in advance how much you are willing to spend, and keep it separate from your retirement savings. Talk with a financial professional before using retirement funds or taking on debt.

4. Set up the basics properly.

Choose a business structure, open a separate business bank account, and keep simple records from day one. A bookkeeper or accountant can help you set this up correctly.

5. Find a mentor.

Free mentoring is available through SCORE, a nonprofit resource partner of the U.S. Small Business Administration, and through local Small Business Development Centers. A good mentor can save you months of trial and error.

Find help in our directory: Business Owners & Entrepreneurs (bookkeeping, business legal, insurance) and Coaching & Mentoring.