Career: The how and why of starting a business over 50

There are many reasons for a new career move

The why of starting a business in the second half of life cannot be generalized. Nevertheless, certain patterns emerge in decision-making. According to an article on the Gründer.de portal, the desire for independence can play a role if the previous professional career offered only limited scope for self-determination through a permanent position. Others, on the other hand, have already reached the highest possible professional level in their industry and the next challenge is now self-employment, the portal continues. Gründer.de emphasizes that financial conditions only play a subordinate role for many founders over 50. Often, passing on one’s own experiences and making a social contribution by founding a company are much more relevant.

Their own professional perspectives and life experiences are also an important part of older entrepreneurs. According to an article by NextAvenue.org, these experiences are the reason for strong problem-solving skills – regardless of the underlying motives for founding the company. The Gründer.de portal also explains that people experience an increase in authority and credibility as they get older, which often makes customer acquisition and management position tasks easier. These advantages were also shown in a study by the US Federal Agency “Bureau of the Census”: A founder who is 50 years old or older is 2.8 times more likely to own a successful company than someone who is only half as old so old person, according to the results of the study.

Well-known franchise companies were founded by people over 50

An article from Business Insider India is dedicated to well-known companies that were founded by people over 50. These include global corporations such as McDonalds and KFC.
For example, the roots of McDonald’s can be found in 1954, when Ray Kroc ate ​​at a restaurant owned by the brothers Dick and Mac McDonald. The then 51-year-old was so enthusiastic about the McDonald’s restaurant that a year later – at the age of 52 – he turned it into a franchise and sold the 100 millionth McDonald’s burger in 1958.

An equally impressive example is Harland Sanders, who opened a gas station at the age of 40 after a military career and experience in various professions. There he sold fried chicken on the side to attract more customers. It wasn’t until the age of 62 that he sold his famous recipe to a friend in Salt Lake City and the KFC franchise was born. A decade later, the company owned hundreds of franchises and Sanders sold his shares for $2 million.

Planning is the first step

In order to start a successful company, it is important to work out the goals and concept of the future business down to the smallest detail, according to Gründer.de. In addition, your own attitude and motivation are fundamental to becoming successful. The basis is therefore a carefully thought-out business plan. Since banks and other investors are often reluctant to grant loans to newly founded companies – especially to older founders – a well-developed business plan could be advantageous at a later date in order to highlight your own competence, the article continues. Adequate planning should also include an exit strategy in order to be able to secure existence even in the event of failure. A central recommendation of all start-up portals is therefore to find out about the different legal forms and choose a suitable one. The type of retirement provision should also be taken into account in the planning.

Collect enough start-up capital

As mentioned previously, banks and other investors are reluctant to approve loans to new businesses. Shakia Webb, senior program officer at the Kauffmann Foundation, also shares this view. In an interview with NextAvenue.org, she explains: “For a new business, getting money can often be a challenge. […] Banks and other financiers want to see historical trends. This can be a challenge for new companies. For this reason, according to the portal, the primary source of start-up capital is your own pocket. Founders should be aware that new companies usually need 18 to It goes on to say that they need a start-up period of 24 months before they can finance themselves. In order to be able to bridge this period, many entrepreneurs take advantage of the opportunity to continue to work in their previous job and to start a new business on the side. Regardless of the financing, it is the contribution According to him, it is of great importance to have adequate risk management and not to exceed one’s own (financial) possibilities. In an interview with the portal, William Gartner, a professor at Babson College who was honored by the Bertarelli Foundation, said: “Smart entrepreneurs lose never more than they can afford. […] “You make small profits over time and test the market over time.”

Invest in yourself

In addition to the start-up capital, the company’s investments should also be carefully considered. The development of your own skills and abilities should not be overlooked. It is particularly important for older generations to familiarize themselves with new technical trends, for example in acquiring new customers, as Gründer.de reveals. The portal draws attention to government financing aid for founders, such as microloans or preferential conditions. Kelly Ndupuechi, entrepreneur and head of funding and marketing at Women Ventures, also commented on this in an interview with NextAvenue.org: “Invest in yourself.”

Use existing contacts

Last but not least, Gründer.de recommends using your own network. Due to their many years of professional career, entrepreneurs over 50 have a massive advantage: existing contacts. According to the portal, these are one of the most important resources when it comes to professional success. Because professional contacts can result in customers, partners or investors, which can ultimately lead to more reach and capital. A real gold treasure for acquisition and sales, according to the portal.

J. Vogel / editorial team finanzen.net

Selected leverage products on KFC

With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the lever you want and we will show you suitable open-end products on KFC

The leverage must be between 2 and 20

Advertising