5 Must-Dos for Baby Boomers Before Starting a Home Business

Do not immediately quit your day job.

If you are a baby boomer considering starting a home business, there are five critical steps you must first take.

Leaving the security of a job with a defined 401(k) plan, health insurance, and other benefits can be a real tug of war for baby boomers who wish to pursue their entrepreneurial dreams.

Conduct an Analysis of Your Exit Strategy

The youngest baby boomers are turning 42, while the oldest are turning 60 at the time of this writing. Whichever group you belong to, analyzing and planning your exit strategy from your current job is critical to your long-term success as a home business entrepreneur. Are your savings sufficient? Will you be able to join your spouse’s health insurance if you are married?

Establish a Financial Plan

How much money do you earn now? How much money do you spend on fixed, variable, and frivolous expenses? Developing a solid plan that outlines the financial picture for you and your family until your business is up and running and generating revenue.

The Business Model and Legal Entity Selection Process

There are numerous business models available, including home party plans, consulting, and affiliate marketing. You must make the choice based on your personality and your natural abilities. The legal entity through which your business will operate should be discussed with a tax accountant or an attorney. There are three options: sole proprietorship, limited liability company, or subchapter S corporation.

Establishing Business Benchmarks

You would not travel across the country without a road map; the same is true for your business. Establishing financial and business-building benchmarks will assist you in developing a focused plan to assist you in achieving your success.

Conduct a Physical Examination

What relationship does obtaining a physical have with your business? Once you leave your job, your health insurance will almost certainly change, and as inconvenient as it may seem, obtaining new health insurance in your 40’s, 50’s, or 60’s can be difficult. While pursuing your home business dreams is likely something you are extremely passionate about, if you do not have good health to reap the benefits of your efforts, little else matters.

The baby boomer generation is unlike any other generation that came before or after it. Although we are technically middle-aged, we are far from it in mind, body, and spirit. We recognize that there is more to life than a commute to an unsatisfying 9-5 job, but there are also critical first steps to take. Making plans and preparations for your home business now will result in fewer headaches later.