Do You Have What it Takes to Be a Business Owner?

En español | More and more boomers are taking the entrepreneurial route. But starting a business is a risky venture.

See also: AARP and SBA team up to help 50+ entrepreneurs.

Before taking the plunge, take a hard look at yourself, your finances, and your business ideas. Research, network, and plan, plan, plan.

Go ahead, aim high, but know what you're getting into when you start your own business. — Photo by Matthias Tunger/Getty Images

Analyze Yourself

• Do you have the confident, take-charge personality it takes to run your own show?
• Does your family support your entrepreneurial project?
• Do you have the tenacity to stick with it?
• Are you ready for a significant time commitment? Starting a business often involves more than a 40 hours a week.
• Are you comfortable with a certain level of uncertainty and chaos?
• Are you a risk-taker? 

Identify Your Product or Service

• Take the time to choose. Carefully compare the pros and cons, the risks and benefits, of each type of business.
• Look for a business that allows you to specialize and fills a growing need.
• Learn the business by working for someone in the same business first.
• Pick something that you will enjoy doing.

Know the Financial Risks

• Don’t use your retirement income to start a business. Consider a small business loan to get you started.
• Know that you have the resources and cash flow to cover a start-up period of a year or more.
• Consider “moonlighting,” that is, starting a business in your off-hours while still working. But avoid all possible conflicts with your existing job.
• Beware of self-employment scams.