30 Nov “Olderpreneurs”: Carving Out a Larger Role in the Workforce
In our youth-driven culture, we hear more about people losing jobs because they’re too old than we do about those over 50 who are launching new businesses. In the UK, however, this demographic is thriving. An estimated one in five people over 50 is self-employed—a higher proportion than for any other age group. They’re called olderpreneurs, and there are now nearly 1.8 million self-employed people over the age of 50, an increase of 21% since 2008.
Entrepreneurship is no longer the exclusive domain of the young
Many of those starting new businesses realize that they have the life skills, contacts and business experience that will help make them successful. They understand sales cycles, marketing, the importance of relationships and often have more money for the startup investment. Statistics show that older entrepreneurs tend to be more successful than those who are starting businesses at a younger age.
Other typical demographic information of olderpreneurs in the U.S.
- According to Jeff Williams, founder of BizStarters, a service that coaches older entrepreneurs here in the U.S., roughly 60% of clients prioritize schedule flexibility over economics—being able to take time off to travel or spend time with family is important.
- Very few older business founders are trying to replace corporate salaries; average earnings expectations are $50,000-75,000 a year.
- The majority also prefer to be solopreneurs, depending on strategic alliances when necessary. Many have spent their careers managing workforces and now prefer to create a simpler business model that fits their new lifestyle—without employee concerns.
- The internet, which enables research, virtual sales and sourcing, has made the solo enterprise model infinitely more accessible.
Regardless of age, new business owners need to identify a business formation structure
Whether 25 or 65, those starting new businesses in California need to identify a business formation structure. Many people with years of industry experience retire and become consultants, often going back to their former companies on an advisory basis to share their expertise. For these individuals, a sole proprietorship may be the right business structure. California Document Preparers assists our clients in preparing the documents to set up the business structure, such as an LLC or S Corp, that is the right fit at the right time for your business.
From sole proprietor to corporation
A number of our clients starts out as sole proprietors, but as their businesses grow, as they hire either part-time or full-time teams, they choose to incorporate, separating the business from the owner. A corporation acts like a separate body that can do things like buy and sell property, be taxed and enter into contracts. Perhaps most important, it protects its owners from personal liability for corporate debts and obligations.
The growing popularity of LLCs
Many business owners who wish to incorporate these days are choosing LLCs because of the personal liability protection, flexibility and tax benefits. An LLC can be one or many members; they’re not required to have Boards or keep meeting minutes and can be managed by the members themselves.
Are you starting a new business or planning to change your business structure in the New Year? Contact California Document Preparers at one of our three Bay Area offices today to schedule an appointment. We’re helpful, compassionate and affordable.