7 Tips for 50+ Female Entrepreneurs Eager to Start a Business

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4. Write a Business Plan

In order to get financing, you need to write a simple but comprehensive business plan. Typically, it should be around 20-pages long and detail the purpose of your company, who the customers will be, why you are qualified to run it, how you’ll sell your goods/services, and your company’s finances.

You must include, in detail, your business, it’s location and your staffing requirements. As well as, a market analysis of the industry you want to break into, your competitors, and your sales strategy. Lastly, and most importantly, you’ll need to predict your start-up costs and how much revenue you expect to earn.

5. Get Your Personal Finances in Order

When starting a business, your personal finances and business finances are the same thing. But, you’ll need to separate them. Calculate how much you need to run the business every month, and how much you need to live on. Then, separate the money. Opening new bank accounts will help keep your finances organized. Additionally, you should cut down your expenses in your personal life, as it might be a while before you start earning a salary from your new business.

6. Line Up Sources of Funding

Usually, startups are funded with personal savings, but you should also set aside 6-months of living expenses to keep yourself afloat. It’s advisable not to use your retirement savings during this time, even though you might feel tempted. If you do, you’ll face withdrawal penalties, and you’ll lose the tax-deferred compound interest that you’ll be living from post-retirement.

Instead of dipping into your retirement savings, you might be able to a take an interest-free or low-rate loan from a friend or family member. If you can, get this in writing to avoid any potential misunderstanding that you could face in the future.

Additionally, you could try to get your company certified by the Women’s Business Enterprise National Council so that you can qualify for an economic development program for financing. Also, it’s worth checking out the Small Business Administration’s network of Women’s Business Centers all over America. At one of these, you can get information on getting a state, local, or private grant.

7. Pay Attention to Taxes and Funding

Starting a business is exciting, but don’t forget to think about the boring things like tax. To keep your finances in order, use straightforward software QuickBooks. Also, if you’re company will be selling a product, you need to get familiar with sales tax law. The more you understand at the beginning, the easier it will be for you once tax season comes.