Small Business Boomers

If tough financial times have made you sick and tired of the  grind  of having your own business, maybe you’re ready to sell.  But selling may not be the best option; you should consider the whole picture.
I recently read a book titled Exiting Your Business Protecting Your Wealth by John Leonetti and I talked with Mr. Leonetti about how Baby Boomer business owners can exit their businesses gracefully while getting the maximum value for all their hard work. I’ll be sharing some of his thoughts today and tomorrow.
How do Baby Boomer business owners assure that they get the highest value …read more

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I remember when many companies did not shut down over the holidays; these days lots of larger companies do. But what about small businesses? Shutting down is not an option for many small businesses, particularly in the current economic slowdown.
The Wall Street Journal reports that many “solo-preneurs” are not planning to slow down or shut down over the holidays. I’m certainly not going to sit around and drink egg nog and watch old movies. This is a slow time, when many of your customers may not be working, but it is also a perfect …read more

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From Tuesday, the first 3 of my Murray Top 10 Tips for Successful Business Startup, and from Wednesday, the next 4 tips, for Baby Boomers and others.
3.  Know what you are selling.  What is your USP?  A USP is a Unique Selling Proposition.  It describes what you are selling and who you are selling it to. The importance of the USP is in its description of your business as UNIQUE.  In order to be successful, you must set yourself apart from other similar businesses.  I like to use the analogy of the cereal aisle in the grocery store.  Each cereal …read more

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As I said before, in the future I believe everyone should start a business.  Not only for tax purposes, but for self-satisfaction, independence, and fun.  We Baby Boomers will all need to start businesses because we most likely won’t have Social Security and retirement funds to support us.
Starting a business is a pretty scary proposition; believe me, I know.  I have done it myself, several times.  I have taught small business classes for many years, and I have distilled the wisdom of myself and many others down to the “Murray Top Ten Tips”  for succesful startup.  This week, I would …read more

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As small business owners struggle to find credit in a credit-empty economy, they are discovering other credit sources that have been overlooked. Today, some sources of funding that might help you and your Baby Boomer business through the credit crunch.   On my About.com Guide Site, I put together a comprehensive list of sources for business startup and growth financing.
Here are a few possibilities, just to get you thinking:

Trade credit/vendor financing.  Getting credit from vendors works well for equipment and office purchases for startup and expansion.
Seller financing for buying a business.  Having the seller as your bank may be the only …read more

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One result of the credit/banking crisis has been a new wave of lenders who can help you get loans for your small business when other traditional lenders cannot.  A recent Wall Street Journal article detailed one such lender, On Deck Capital.  Instead of requiring you to put up assets for more traditional types of loans, On Deck lets you leverage your cash flow for loans up to $100,000.
If you are like a lot of other small business owners, you may be finding it difficult to get a traditional loan.  On Deck  says that 65 percent of small businesses seeking loans …read more

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I read today about a small business owner in Texas who had been a good customer at a bank, and who wanted a loan to expand his business. Yet the bank wanted him to have $1 million in the bank in order to borrow an additional $1/2 million (doesn’t make sense, does it?). These kinds of stories worry me, because they affect not only the business owner but the entire U.S. economy for the future as well.
Small businesses are the key to economic growth. Look at this one example:

The businesman was going to hire 45 more …read more

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Most of us have difficulty doing long-term planning, but it’s vital for your investment strategy and for your business to think about the long-term.
Long-term thinking for Businesses
Many businesses, for example, think only about getting through the current stage of their business, or they are focused only solving the immediate problems they face (like making the next payroll).  But if you focus only on short-term goals, you won’t have a future; it is only by thinking long-term that you can succeed.  Bill Gates has said that from the beginning he was focused on long-term goals.  Whether you believe him or …read more

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 One of my favorite movies is Indiana Jones and the Last Crusade (1989), particularly the ending where Indy has to take a “leap of faith.”  (Remember?)
Starting an “encore” business as a baby boomer is like taking that “leap of faith.”  You don’t know what’s going to happen and you certainly have no idea if this is a smart idea.  After all, you’re supposed to be thinking about retirement, instead of new businesses.  But what the heck.  You can make the leap safer–here are some tips:
1. Learn the market.  First, figure out the size of your potential customer base.  Then learn …read more

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Interesting question. It was posed in a recent article in Entrepreneur (online). They suggest that you may be able to borrow against a 401-k to start a business, at a reasonable interest rate. I’m not sure how that works, since you would have to borrow against (in many cases) investments that might lose value.
The other potential problem with borrowing against a 401-k is that if you lose your job, you would have to pay back the money immediately. So this strategy wouldn’t work if you’re thinking of quitting and going into your new …read more

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