And, managing and financing a startup with a side gig income
I have always counseled against waiting for a New Year to start a business, because it has the emotions of new year resolutions. And, we all know how successful new year resolutions are. There are 365 days in a year, and it is perfectly ok to start a business in any day of the year.
And for those dreaming of leaving the 9-5 grind, or starting a business after retiring or nearing retirement from 9-5 gigs, it makes a whole lot of sense not to plan on starting a business as a new year resolution. Plan on how to start while still keeping your 9-5 gig; and when you have to leave the 9-5 to pursue your passion…passions. Not everyone will be lucky or have a business idea that allows for a startup, while keeping a 9-5 gig.
Technologies have made it a lot easier to start businesses on a shoestring, and if you’re going to run a business, you may need to learn social media, online commerce, website management and other technical skills. Many of these technologies are just plug and play, which really enables you on a shoestring budget to have the look of a high-end business.
My first startup was during the early years of the worldwide web. I developed and created my first business website, using Microsoft BCentral software in 2000. It was completely DIY website that gave my company the exposure and high-end big business status to Chinese API and Chemical manufacturers that wanted to enter the US market. The time difference between US and China provided me the opportunity to keep my gig at Columbia University Medical Center/Presbyterian Hospital in NYC, and earning a decent salary as a Clinical Biochemist while working on my startup.
Another truism is that behind every entrepreneur is a working spouse. If you have a spouse and kids, you must call everyone to the table and explain the new changes and how it will affect the family before you start. This will allow them to process the situation in order to take the leap of faith with you. Just know that this change will be just as scary for your spouse as it is for you. Something got to give, but that something doesn’t have to be 100% of your family. Also, important, is to layout your exit strategy to your family; and if your exit strategy is transferring the business to you children (which I think should be), you have to let the family know this, and start to develop the next leadership of your company.
While you don’t need an MBA to start and run a business, it is very important that you read and learn new things in order to develop new skill sets, because at the early months and years, you practically have to do everything yourself until you have enough cash-flow to hire helping hands.
And the good thing about learning and developing new skills is that you can easily use your new skill sets for consulting gigs that will give you more freedom and flexibility in earning an income while building your business.
In my own case, starting a business in the Pharmaceutical industry provided me with the opportunity to join various industry professional associations, developed new skill sets in clinical research monitoring & management, learned the various value chains in biotechnology and biopharmaceutical manufacturing. This completely exposed me to a whole new industry of quality assurance and quality control management, and lean business operations, as well as provided me the opportunities for networking, and steady consulting and contracting gigs with major premier pharmaceutical companies.
The risk of earning a good income from a gig while pursuing your entrepreneurial dream in the early phase is that if the focus of your entrepreneurial venture is money, it will kill your dream. This is why you have to know your goal for starting a company apart from making money. For me, it is the desire to work on my own terms and the freedom to travel when I want, and this is reason I won’t commit my time as an employee, even when offered excellent jobs by premier biopharmaceutical companies. If you have the skill sets that are in demand, you can always negotiate for a continuous and steady consulting agreement with locations and time options.
You have to keep your eyes on the ball, and don’t let a little bit of money kill your hustle or slow down your dream. Stay motivated, because distractions can come in many forms, positive and negative. It’s like the hare that took a nap because he was winning. The tortoise kept grinding, slow and steady.
Make an effort to identify and deal with all potential obstacles, the pitfalls that deter and the successes that slow things down.
While it can be fairly easy to start a business, particularly one that requires no office space or retail location, it isn’t for everyone. To make it work, you need to have the right idea at the right time, plus the skill sets to get your product in front of buyers.
At the end of the day, it is a business, and you need to be solving some problem in the marketplace.
Here are 11 tips for starting your own business in or near retirement:
Determine whether your idea is really a good business plan. What problem does it solve? Be very honest with yourself in the business idea you come up with. If your passion doesn’t translate into a viable business, maybe you’re better off pursuing it as a hobby or volunteer. And, don’t worry about finding the next hot business idea; just take a look around you and see where’s the need.
Evaluate your skills. Do you have an ability to do all the tasks necessary to make your business a success? Make sure you’re really good at it. Yes, you have to have the passion, but you have to have the capability, too.
Consider the time involved. Most people don’t want to work 80 hours a week, or even 40 hours a week, once they’ve reached retirement. It’s important to figure out a way to do it in a way that’s not all-consuming. Stay away from starting brick-and-mortar businesses that require your constant presence, such as restaurants and stores.
Get good advice. Most cities have lots of free and low-cost resources to help beginning entrepreneurs. Some also provide good networking opportunities. You should also look for conferences and trade associations in your field.
Figure out how to finance your startup. Many businesses, especially those with no physical location, can be started for a minimal investment. If you need six figures to get your dream business off the ground, you may need funding or investors, which create additional layers of complication. Don’t invest money you can’t afford to lose.
Know if you want to manage others or can handle the isolation of working alone. Many people who start businesses in retirement don’t want the burden of managing employees. On the other hand, if you’re running a one-person business, you’ll end up spending a lot of time by yourself, and not everyone likes that either. Decide which setup is the best fit for you before getting too far in the process.
Have an exit strategy. If you start a business when you’re 65, you may be ready to stop running it when you’re 75. Have a plan, whether it is to leave the business to your children, sell it or just shut it down. You should consider writing down your plan and even sharing it with your spouse and children.
Use your professional connections. People who have been in the workforce for a long time know a lot of people. That gives you immediate access to potential customers as well as consultants who can help you get your business off the ground.
Embrace technology. If you’re going to run a business, you may need to learn social media, online commerce, website management and other technical skills. Many of these things are just plug and play, which really enables you on a shoestring budget to have the look of a high-end business.
Protect your assets. Make sure your business structure protects your assets. The best way to do that will vary by state and by the size of the business. If your business goes down the tubes, you don’t want to lose your savings as well.
Don’t expect overnight success. You may need to try several things and radically change your initial business plan before you find a formula that works. Understand that this whole journey to an encore career is not going to be a linear thing. Let yourself take some rides and try stuff.
Lastly, note that random wins are great, but keep them in perspective. You certainly should be aware of and be ready to absorb organic opportunities that just might work for you. They could change your trajectory positively. However, in the early stages, consistently working the plan is vital.
Cletus E. Olebunne, MBA, PMP.
Project Management Consultant.
Biotech-Biopharma Quality Mgt Consultant.
Entrepreneur & Author.
2016, Huritt Global Business School.
