Ideas for boomers who want to start a business

Feb. 9, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- I'm 59 years old and would like to start a business, but I'm concerned about the financial investment. How can I start a business and preserve the financial assets I have?

Mitigating risk is a key consideration for all entrepreneurs. There are a number of additional issues for you, i.e., how large a nest egg you have and how much of it is required to cover your basic retirement and family needs.

It may be difficult to replace dollars invested in your business that were earmarked for other things at this stage of your life, and you have fewer years to do so until the time you may actually need those dollars.

So what can you do?

Be smart about the type of business you start. Some ideas to consider:

--Avoid businesses that require a large investment in inventory, a long-term lease or building a facility. Many service, home-based and online businesses can be started without these major financial commitments.

--Rethink your idea. Sometimes by even slightly altering your business concept, you can significantly reduce the startup costs. For example, instead of opening a restaurant, would you be happy with a catering business at a fraction of the startup costs? What about a kiosk in the mall instead of a retail store?

--Start your business while still working. By continuing to work, profits rather than personal dollars can be invested to fund your business's growth; and you will be able to pay your bills at the same time.

--Take in a partner. You may want a partner for financial reasons or to ease the physical demands of a new business by sharing the workload. Common goals and values are critical, as is a strong partnership agreement.

--Invest intellectual capital rather than dollars. You spent decades building your intellectual capital; now is the time to draw on it by working in a field and industry you know.

--Seek legal advice. Protect your personal assets through the legal form of organization you choose.

For more information regarding baby boomers starting businesses, go to www.sba.gov/ 50plusentrepreneur.

Response provided by Mary Beth Izard, author of BoomerPreneurs, How Baby Boomers Can Start Businesses, Make Money and Enjoy Life, and the Kansas Small Business Development Center at Johnson County Community College. Have a small-business question? Send it to dvestal@kcstar.com.

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