It’s never too late to start your own business – here’s why

When we think of entrepreneurs, we tend to picture the Zuckerbergs and Bransons of this world; young, disruptive students fighting the status quo and becoming their own bosses before the age of 20. But young founders are a minority, failing to represent the reality of the average business owner. 

What about Bob Parsons, who founded GoDaddy at the age of 47, or Eric Yuan, who founded Zoom at 41? And these are just the big names. Countless older entrepreneurs are taking the plunge every day.

If you’re an older aspiring entrepreneur sceptical about your chances, read on as we explore the benefits of becoming an entrepreneur a little later in life. We also highlight the key considerations to help prepare you for the best start.

Older entrepreneurs are the norm

First things first – if you’ve missed your chance to start your own business, think again, because older entrepreneurs are far more common than you might realise. In fact, Enterprise Nation’s research reveals that the average age of business founders in the UK is 46, and more than a third of companies are started and run by people over 50. 

Maybe you’re in retirement looking for a flexible way to get back into work, or perhaps you’ve worked for someone else your whole life and are ready to take charge; simply put, age should not be a barrier.

The advantages of age when starting a business

1. Life experience

One of your most significant advantages over young entrepreneurs is your breadth of life experience. While you might not have any hands-on experience in running a business, you have a seasoned set of transferable soft skills to get your business off to a great start. These skills include:

• Communication
• Self-discipline
• Adaptability
• Problem-solving
• Productivity
• Attitude to risk
• Motivation

Depending on your work experience thus far, you may also have crucial professional knowledge that can help with your new venture. Maybe you’re particularly familiar with specific markets, know how different marketing strategies work, or perhaps you’re a confident salesperson who knows how to grow a consumer base. 

You also have a better understanding of your strengths and weaknesses. You’ll undoubtedly make some mistakes when you start your own business, but with a strong understanding of who you are as a person, you’re in a stronger position to approach and overcome those challenges. 

This is all valuable wisdom you’d have missed as a 20-something entrepreneur. At this stage in your life, you’ve been there and done that, and you can now apply those valuable skills and experiences to start a flourishing business. 

2. Confidence

Confidence is a significant attribute that every aspiring business owner needs – it’s one of the main reasons holding many people back from ‘taking the plunge.’ Admittedly, there are many uncertainties, but that’s why it takes a certain type of person to start a business: someone confident and willing to take the risk. 

Simply taking that first step and launching your own business is half the battle. However, for many, that vital confidence conjures up over time (perhaps that explains why most entrepreneurs in the UK are over 40). 

Nonetheless, the older you are, the wiser and more confident you are likely to be, giving you greater control and the optimism you need to start your own business.

3. An established network

The life of an entrepreneur can get stressful and overwhelming, so it’s essential to have a trusted and balanced network of key contacts that can support you with your business venture. Luckily for you, you probably already have one. 

Your circle of trust might comprise someone to offer financial advice (like a broker), business guidance (like an old colleague), and personal support (maybe a spouse or partner). Your perfect business partner(s), investor(s), employees, or customers might already be in your life. 

These established relationships are precisely what young founders are missing and give you the ammunition you need to succeed as an ‘olderpreneur’.

4. Financial health

We assume that new entrepreneurs are cash-poor, struggling to make ends meet as they wait for their businesses to grow. But having been in the world of work for some time, you’re likely to be more financially stable as an older founder. 

You probably have savings, a pension, and maybe even some investments to help self-fund your new venture, making you less reliant on borrowing. If you need financial assistance, don’t forget that many options are available to you – just like any other start-up. 

In fact, if you need to take out a business loan, age could work again in your favour. With a longer and healthier credit history than your younger counterparts, you could find that some lenders find you a more trustworthy borrower, making it easier to secure the funding you need. 

5. Time to dedicate to your business

If you’re an older aspiring business owner with children, they’re most likely all grown up by now (or at least past the stage where you must do the daily school run). A lack of parenting responsibilities frees you up considerably to focus on the success of your business. 

Furthermore, having adult children is an excellent opportunity to go into business with your family if that’s something you’d like to explore. For instance, you can become partners, employ them as staff, or simply lean on them for valuable advice occasionally. 

6. The opportunity to turn a life-long passion into reality

A potentially underrated benefit of starting your own business a little later in life is the ability to make a life-long passion a reality. Chances are that you’ve had a business idea for years – even decades – or maybe you’ve had a hobby or interest that you’ve always wanted to turn into a living.

But perhaps you lacked the resources to do it earlier, maybe you didn’t feel confident enough, or perhaps life simply got in the way. Whatever the reason, it’s never too late to turn that dream into reality. And if it’s something you’ve dreamt of for a long time, when it finally happens, it can make that achievement all the more exhilarating. 

Things to consider when starting your own business

There’s plenty of opportunity to start your own business later in life. However, despite the above advantages, it doesn’t come without its risks. As an older entrepreneur, you’ll still encounter stress and life’s daily ups and downs. You’ll just need to manage them differently now. 

Here are the main points to make sure you’re mentally prepared to start your own business:

Financial risk

Your financial situation may generally be healthier now than it was 20 or 30 years ago, but that doesn’t necessarily make starting a business a breeze. One of the most significant financial constraints to bear in mind is, as bleak as it is to say, you’re under time pressure to turn your company into a success.

Any money you inject into your business that doesn’t pay off could be vital funds that you take away from your pension or will. Having said that, we mentioned earlier that numerous funding options exist, so you don’t have to completely self-fund your new business.

We recommend taking advantage of any grants that may be available to you. These are typically non-repayable loans designed to help new businesses get off to the best start. Different grants are available depending on your location and industry, but you can find suitable ones on the government website. 

Find a work/life balance

Being an entrepreneur is notoriously time-consuming. In fact, according to a 1st Formations survey, over half of business owners spend 6-7 days working a week. 

Maintaining a healthy work/life balance is important at any age, especially in your later years. Therefore, it’s essential to consider how starting your own business at this stage will impact your lifestyle and whether that’s something you’re happy with. 

• ‘Freelancing is booming in the UK’: Matt Dowling, Founder of the Freelancer Club
• 7 simple ways to become your own boss
• Bringing on a business partner – what you need to know

Remember, turning your passion into a living is incredibly exciting and liberating, but it does come with certain sacrifices and responsibilities that you’ll have to maintain. If you decide it’s too big a commitment, why not try a side hustle instead?

Fill any gaps in your knowledge

We discussed that you’re at a considerable advantage as an older business owner, with heaps of life and work experience to bring to the table. However, processes, technologies, and practices develop incredibly quickly.

• 5 ways your small business should use AI

So, consider whether there is anything you need to brush up on before getting started. Maybe it’s your computer skills, marketing strategies, social media, or something more advanced like AI. 

Then, fill any gaps in your knowledge, perhaps by taking a course, attending a webinar, or speaking to a friend or colleague who could help.

Feeling inspired to start your own business?

If you’re feeling inspired, there’s no time like the present to start your business. At 1st Formations, we make the process as quick and easy as possible. Look at our company formation packages to find the perfect one for you, or contact our expert team on 020 3897 2233 if you need some guidance.