By Derek Goodman of inbizability.com
More seniors than ever before are becoming entrepreneurs. It is a great way to practice what you are most passionate about on a daily basis, which is crucial for living a meaningful life. However, if you’ve faced financial setbacks recently or in the past, you might be reluctant to start your own business.
Thankfully, no matter what you’ve experienced, you can become a successful entrepreneur. Explore expert strategies on starting your first business after financial setbacks.
Ensure that your current finances are in good standing.
Before doing anything, perform a personal financial health checkup. While you are likely in much better standing than you were previously, you definitely don’t want to end up in a similar position as you were before.
Prior to starting your business, ensure that your retirement savings and investments, credit score, and cash flow are all stable and healthy. Rather than guessing if your personal finances will be able to handle the addition of your business expenses, seek professional advice. Work with a financial planner to discuss your plans, and see what he or she says about moving forward. By getting the “green light” from a trusted professional — as well as personalized money strategies — you can have added confidence in launching your new endeavor.
Form an LLC to reduce your personal financial liability.
When starting a business, you will ultimately need to decide what business structure will work best for your needs. While many home-based business owners settle on a sole proprietorship, there are numerous advantages in forming an LLC.
Almost any kind of small business — from landscaping to baked goods — is eligible for LLC formation. Some of the top benefits of this business structure include tax advantages, reduced paperwork, and enhanced flexibility. However, one of the most significant benefits is limited personal financial liability. This means that your personal assets are completely separate from your business. In the event that a business debt cannot be paid, your home or personal assets cannot be used for collections.
When exploring the LLC cost in Texas, you’ll notice that filing yourself or using a formation service are the most cost-effective options. Before filing, review all LLC formation regulations, as they vary by state.
Don’t take on any additional debt (personal or business-related).
Taking on debt is seldom an ideal situation. While loans can help accelerate ownership of larger items, being attached to monthly payments for years is a big responsibility. As you work toward your goal of becoming an entrepreneur, resist the urge to take on any debt, both personal and business-related. This includes credit cards, personal loans, business loans, or anything else that results in a monthly payment.
When you don’t have any debt on which you can default, you automatically place yourself in a better position. If your business doesn’t generate the kind of income you expect or if you experience slower than usual sales, you won’t have to worry about making payments for yourself or your business.
Explore ways to start your business with minimal startup costs.
Last but not least, explore all of the ways you can launch your business with minimal startup costs. No matter how small or large your business is, there are always ways that you can cut unnecessary costs. For example, do your research when looking for website hosting, payment processing platforms, and the like. While you certainly won’t want to choose the cheapest option for everything, see where you can save. Oftentimes, you can find coupon codes and sales on the things you need to get started.
At every age — and in many circumstances — becoming a business owner is a feasible goal. Following the steps above will not only help you launch a successful business, but these tips will also limit your chances of experiencing financial difficulties in the future.
Dr. Mara Karpel is an acclaimed psychologist, radio host, author, and speaker who has devoted her career to helping individuals of every age live a more meaningful and joy-filled life. Start Living the Passionate Life today!