By Christine Graf
An estimated 29 million Americans between the ages of 50 and 70 say they are interested in starting a new business. In recent years, more than a quarter of all new businesses were started by people over the age of 50, analysts say.
Starting a business at any age can be a daunting task, and approximately half of all new small businesses close within five years. It is for that reason that experts warn those in the 50-plus age group to avoid investing their retirement income in new business. If a business fails, there is less time to rebuild these retirement savings.
Lake George human resources consultant Gail Hamel advises new business owners to be prepared to weather financial difficulties.
“They have to make sure they are going to be able to live without making money, and that they have some sort of fallback for a while until money starts coming in. I think that’s the hardest part for a lot of people. It’s not for everybody,” she said.
Hamel started her own business, Hamel Resources, when she was 52. She said it took almost two year before her business began to generate a steady stream of income. Before starting her own company, she worked as a human resources manager for a bank with more than 20,000 employees.
“I went from that steady paycheck getting dumped into my account every two weeks to draining my savings,” she said.