By Jessica Thiefels Small Business Writer
Part of the AMERICA’S ENTREPRENEURS SPECIAL REPORT
Transitioning from your nine-to-five career to becoming a business owner after 50 may sound enticing, with the freedom to set your own hours and profit from your passions. But midlife entrepreneurship comes with financial risks, too. Here’s how to manage them and set yourself up for success:
Be Mindful of Your Financial Commitment Since you’ll need to continue saving for retirement or live on your current fixed income in retirement, it’s crucial to establish a budget for how much you can, and will, invest in your business. Ask yourself these questions:
5 Funding Ideas for a Midlife BusinessOnce you’ve determined your monetary limits, consider the five funding ideas Business.com recommends: Bootstrapping, personal loans, government or venture capital, crowdsourcing and retirement accounts.
Bootstrapping If you own the right equipment and have the knowledge to launch your business without help, use your own capital for initial costs. Just bear in mind that doing so will likely limit your financial ability to hire employees or invest in marketing.