Starting a Business in Your 40s? Apply These 5 Tips

From what people see on the internet, social media, or TV, the founders of startups are hip, young men living in Silicon Valley. Does this mean that you can't launch a business or a startup when you're no longer young?

The answer is no.

According to a report published in Inc., the average entrepreneur launches their first business at age 40. What's more, the average age of leaders of high-growth startup companies is 45 years old.

If you're looking to become your boss, know that this is possible even if you've hit the age of 40.

Here are a few suggestions if you're thinking about joining the ranks of ambitious entrepreneurs who are 40 and older:

1. Do Your Homework

Research your business idea thoroughly. This way, you can base important decisions on facts instead of untested assumptions, uneducated guesses, or whims. Follow what established business owners recommend: read trade publications to help you learn about your competition, trends, and industry developments.

Also, when you're researching, don't forget to check if you'll need to undergo training or obtain the necessary licenses or certifications. If you want to start an HVAC or roofing business, for instance, you'll need to earn a contractor license and take on technical training courses to help you succeed in your business.

2. Begin Working on Your Business While You're Still Employed

Do you want to ensure that you won't have to return to the corporate world that you possibly dislike? Then, get started working on your business while you're still working a 9 to 5 job.

Take small steps to ensure that your business idea resonates, pays off, and has a niche in the market. This could mean spending your nights researching stuff on the web (instead of watching shows on Netflix or cable) or spending your weekends taking online training in front of your computer (instead of playing games). Just make sure that you still allow time to rest your body and mind, as you don't want to burn out juggling two things. The time and effort you pour into preparing will help you a lot when the time comes to leave your job.

Here's an example: you can begin building your customer base if you want to run a service business. This usually means working for free (only at the start) to have clients. The rationale for this is that these new clients can provide valuable feedback on what you're doing well and what requires improvement. They can also act as a reference and offer testimonials of the services you offer.

If you are a product business, on the other hand, launch your store on the web. Begin searching for individuals who interact with your business. Do small tests to find out where your customers are online. This will help you determine where to invest your time and resources.  

3. Come up with a Solid Business Plan

A business plan is a written document and a roadmap that outlines the goals of your business along with the details on how you plan to accomplish those goals. A business plan is prepared with a template and typically consists of a marketing strategy, financial projections, a market analysis, and an executive summary.

Some entrepreneurs may wonder why they need a business plan in the first place, especially if they don't intend to borrow money from a bank or ask for capital from investors. Keep in mind, though, that the actual value of the plan lies in the critical thinking necessary to put it together, along with the action steps taken to prevent unwanted issues before you encounter them.  

If you need assistance in putting together a good, comprehensive business plan, get in touch with organizations like SCORE or the Small Business Administration (SBA) for free help, step-by-step guides, and business plan templates.

4. Gather the Right Team

Successful late-blooming business owners say that a legal advisor and an accountant are essential (unless you have a background or solid expertise in business law and accounting). You'll also need someone influential on social media, depending upon the objectives and mission outlined in your business plan. Some startups tend to work with influencers to gain exposure for their brand or broaden their market.

Tap your network to get referrals. You can also connect with people you've worked within the past. The critical thing to remember here is to work closely with knowledgeable specialists who you trust and like.

5. Consult Your Family About Your Plans

Even if your family isn't a part of your business, they are a part of your life. When you begin thinking about quitting your job, you need to communicate this wish to your family. Tell them about your plan to obtain support.

Don't look at age as a hindrance to starting a business. The second half of your life can be ideal to launch a business if you have the drive, vision, and dedication to succeed.