If retirement is getting closer, you may be tempted to use some of the extra time and capital at hand to chase the entrepreneurial dreams you’ve always harbored. Launching a lower middle market business is an exciting prospect, whether it’s digital or bricks-and-mortar in nature, especially if it’s a business you’ve spent many years thinking about. But it’s also important to thoroughly consider whether you’re properly prepared to commit the time, money and sheer mental energy to a new commercial venture.
Are you ready to do the homework? Experts say this ‘homework’ process is essential to business success, noting that it was important not to simply understand how your own business would be structured and create its product and service, but also to have an in-depth knowledge of the specific industry you hope to crack. It’s not dissimilar to starting your career all over again, in the amount of knowledge-building required. Physical health is fundamentally important because starting and operating a business is taxing, wearing mentally. Prospective lower middle market owners ask themselves if they’d be confident starting a new job in a completely different industry to the one in which they’d spent a lifetime. If the answer is yes, then you’re more likely to be ready for the challenge of starting and operating your own small business.
The key is to look into the future and decide whether you’re willing to allocate what may be years in developing a business to the point at which your initial cash investment, as well as your time and energy, will see a return. All new business projects have at least a 10-year life-cycle, at the end of which the founder can sell or otherwise exit the business. Age, in and of itself, is not a factor, not an issue to consider. It’s how old you feel and how much energy you bring to the process. In other words, are you energized, and do you want to keep working or would you prefer to wile away the hours playing golf? It’s such a personal thing that only you can answer that question.
Lastly, older entrepreneurs should consider the potential timeline of their business project, and the role they envisage that business playing in their retirement plans. For retirees running a business, it’s important to consider the level of capital investment, what long-term gain you’re planning to make, or whether you’re simply seeking a passive income stream that you might eventually plan to wind down. It’s important to be aware that any business income could impact your eligibility for the Age Pension and seniors’ concessions.
SA Capital Partners can be a key ally in this decision. Corporate and financial counseling is something we’ve cultivated experience in over many years of working in the lower middle market, and exploring new business ventures, whether it come down to income or planning, can be made easier using our expertise!
About SA Capital Partners:
SA Capital Partners is an innovative financial services firm that specializes in mergers & acquisitions advisory and capital raising for lower middle market businesses. We aspire to give all the tools necessary to complete any transaction. SA Capital Partner’s financial services industry specialists provide comprehensive, integrated solutions to banking transactions. Our breadth of services and industry knowledge allow us to understand each client’s unique business needs. Our goal is to make all financial services available to every small business.