retirement planning for business owners

3 Financial Hacks for New Business Owners

Today’s retirees have an appetite for entrepreneurship, which allows them to pursue interests and offers flexibility to their golden years. If you are in (or nearing) retirement and starting a brand new venture, congratulations! Here are some financial tips to get started.

Baby boomers aren’t slowing down and are energetically making their mark on small business.

Starting a business after 50 is an excellent way to earn extra income, supplement your retirement savings, reduce your tax bill, improve your mental and physical health, and pursue your dream of becoming an entrepreneur while passing on your skills and knowledge to the next generation. And this “trend” isn’t slowing down. In fact, one-third of all U.S. small business owners are baby boomers aged over 50, and 21% are over 60. Thus, 54% of all business owners in the U.S. are over 50.

If you’re in the beginning stages of launching a new business, you probably have received lots of advice and information on the do’s and don’ts when it comes to financial hacks. In fact, you may have too much information. 

As an entrepreneur, one of your biggest challenges will be staying motivated when things aren’t going well. This is especially true in those first few years before things start turning around financially. 

Below we have gathered the top three financial hacks for new business owners over 50.

Determining Your Business Plan 

The first step is to figure out if your business idea is, well, a good business idea. 

Be honest with yourself: Does your passion equal revenue? Or is this business idea a hobby that will eventually suck more cash out of your savings? 

Secondly, do you have the resources and necessary skills to bring this idea into fruition? You have to have the passion, but you have to have the capability, too. Make sure you have the time to dedicate. Do you really want to spend 40+ hours a week of your retirement grinding, or is your business idea a more “hands-off” approach? Think ahead and decide whether you really want to pursue the opportunity. 

Setting SMART Goals

SMART goals are something both new, and seasoned entrepreneurs have been using for a long time. SMART goals were first introduced back in the 80’s as a way to manage goals and measure success. Most entrepreneurs have vision and determination. They are also able to adapt to changing situations and make quick decisions, which can make them seem like superheroes. But as any entrepreneur knows, it’s not easy to stay on track every day.

There are many things that can get in the way of accomplishing goals, including lack of sleep, procrastination, and doubt in your own abilities. The best way to combat these obstacles is by setting SMART goals: Simple, Measurable, Achievable, Realistic and Timely.

This acronym will help you set realistic expectations for yourself and keep moving forward no matter what happens along the way. It’s also important to set smaller weekly goals as a confidence booster to keep you moving in the right direction throughout the week. 

Keep an Eye on Your Cash Flow & Spending

As a new business, cash flow is one of the most important factors in your success. If you can’t keep up with your expenses and stay on top of what’s coming in and going out, it’s very likely that you’ll run out of money—and running out of money means the end of your business.

The best way to prevent this from happening is to take a conservative approach to expenses. Avoid spending money on things that don’t directly support the growth of your company. In other words, don’t spend money on unnecessary items. This could be anything from the office space you’re renting or buying brand new equipment you simply don’t need. Use what you have and save up for those things later when they’ll really pay off for your company.

Furthermore, we highly recommend you don’t use all of your retirement savings for startup costs. Your retirement savings are for just that – retirement. Over 50% of new businesses fail for reasons outside of the business owners’ control. So only use a small portion of your retirement income, and be prepared to lose it all. You may not lose it but you need to be financially secure if you do lose it.

Hiring Like-minded and Skilled Employees

The saying “time is money” is true for all businesses. The more you can focus on what you do best, the more you can make in your business.

It can be easy to get sidetracked and spend time on tasks that would be better delegated to employees. If you’re thinking that hiring help is costly, consider how much money you could be making if you focus on what you do best for business growth. While taking on a range of roles sounds like a productive and money-saving move, it can actually cause four times more mistakes and cost you more than hiring expenses. Hire like-minded, skilled employees to enable you to accomplish more, and do so efficiently and faster.

Plan, Do, Adjust, Repeat

Before embarking on a retirement business idea, you will want to have carefully planned your future finances. If something’s working, expand on it. If it’s not, either toss it or alter it dramatically so it turns the corner.
And don’t be afraid to ask for help. Clearly, entrepreneurs over 50 are redefining what aging looks like. Sure, baby boomers face some challenges as business owners tha

 are unique to their age group. Especially if you are a first-time entrepreneur, be sure to reach out to your trusted financial advisor. A financial advisor has the experience and expertise to help you make the most of your initial investments into the business and make sure you don’t sabotage your retirement in the process. He or she can help you assess the viability of your business model and outline strategies and timelines for your path to profitability.

Final Thoughts

Starting a business is an awesome adventure but one that comes with risk and the unknown. While it is sensible to prepare for the worst possible outcome, remaining optimistic is important for financial, mental and emotional health. Consulting with a financial advisor can help to provide expertise during the uncertain first stages and help to set the course for those desirable productive and profitable years.

As an entrepreneur, you are responsible for everything from the products you sell to the employees you hire and the customers you service. When it comes to your finances, it can be hard to find time to stay on top of tax laws, investments, insurance and more. 

Working with APO Financial

Every successful journey starts with prudent preparation and an effective plan. We help make sure you haven’t overlooked any key elements as you pursue your retirement destiny.

The right financial team can help provide education and alleviate stress while potentially avoiding costly mistakes related to your current and future finances. At APO Financial, our goal is to provide you with a holistic and sustainable plan in order for you to have a solid foundation, in which your business can thrive. 

APO financial takes all factors into account and we continually update and monitor these plans as there is no one size fits all solution.

For more information on our financial services, contact us here today.

Investment advice is offered through APO Financial Services, LLC. Insurance and fixed annuity products are offered through our affiliates, Asset Protect One, Inc. and/or APO Financial Services, Inc. No persons associated with APO or its affiliates is a licensed attorney or tax professional and nothing on this Page should be considered tax or legal advice. It is important to read our disclosures available at this link:

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