Starting a Business After Layoff: A Guide for People Over 50
For anyone considering starting a business, it is crucial to do your due diligence - have a niche, understand the market, the competition and the risks as well as opportunities. Do a SWOT analysis, create a business plan, develop pro-forma financials, and learn about the appropriate entity structures (i.e., LLC, Partnership, S-Corp, etc.). If this is not your expertise, find a friend, coach or mentor who can guide you. Starting a business requires thoughtful analysis and
preparation. Be realistic. Ensure you have a long runway (of finances) before investing in a new venture. Unless you have great confidence in your plans, it's best to avoid tapping into your retirement savings. Needless to say, if you have the opportunity to buy into an existing business, that may be a viable alternative.
There is an abundance of information about ways to start online businesses or earn “passive income.” Many of the options are enticing while only a few are realistic (or safe). For example, there are horror stories about people being duped by jumping into different forms of stock, options or currency trading. Some have been lured into trading crypto-currency and have lost their life savings investing with bogus companies. (See NPR Story about a senior who lost $340k investing in a crypto currency scam that seemed like a great thing). Many others have struggled trying to learn day trading, losing thousands of dollars in the process, although there are many who have had success. In many cases, people have invested thousands of dollars with “universities” and training programs designed to teach them the secrets of trading (options, commodities, stocks, bonds, etc.). Other opportunities you will learn about include:
Selling products or print-on-demand items on Etsy, Shopify and eBay
Creating an Amazon Storefront (typically, you need products to sell)
Becoming a social media influencer, blogger or vlogger
Affiliate marketing
Various uses of ChatGPT and AI
YouTube Channels and Videos (aka vlogging)
Digital real estate
Book writing and publishing
This is a very short list and Riff on Jobs will continue to evaluate and provide advice and guidance on all of these areas, so please stay tuned. In the meantime, there is a lot of collateral and numerous eBooks, audiobooks, and printed books to offer deep dives into any and all of the topics listed here.
Starting your own business may be the most exciting thing you ever do, but it is not for everyone and certainly not if you are risk averse. Proceed with caution. Never ever invest more money than you can afford to lose. (On the same topic, never lend your family or friends more than you can afford to lose.) Be sure to always protect your identity and your assets – do not give anyone access to your bank accounts or credit cards. Most important: keep learning, growing and having fun.