A Successful Family Business Ownership Transition

Every small family business faces unique challenges and unusual choices unlike other small businesses. This is particularly true when the founder(s) or current business owner(s) decides to explore if they can transition away from a management role, reduce their ownership share, leave the business (and/or perhaps consider even consider selling it to a non-family member). However, in order for a smooth transition of management oversight and/or business ownership from one family member to another, there are some important considerations that everyone needs to face.

Is the current owner willing to give up “control” of the business?
Will this existing owner be open to the business changing under new management?
Is the potential new business owner(s) sensitive to the founder’s needs related to control and change?
Will the new family member(s) taking over the business be as passionate about the business?
Will the new owners have the commitment and competency to manage this type of business?
Can the business “pay” any price/value of the business requested by the departing founding owner?
Is there a transition plan that both the out-going and in-coming owners can create together?

These are several considerations that all need to be addressed and solved. No small feat!!

Transition is a process

First, it is essential to understand that effective ownership succession is a process. It takes time to ask all the key questions, gather all the critical metrics and develop a plan – and for everyone to feel comfortable phasing in or out of the business. Unless there is a reason why a transition must happen in a hurry, it is preferable that the current owner take time to slowly phase out of their role, and the new owner(s) slowly phase in. The most successful ownership successions happen over years not months.

Communicating about the business to all generations

If you plan to pass your business on to the next generation, consider engaging them in the business in positive ways – from an early age. It can start just by talking about the business in ways that will give them an appreciation for the work that is done and the impact that it has in the community. There may be times when they will see you and your business struggle. So be sure they also see what you love about this business and why they might, too. When they are ready and able to work in the business, can you frame it as an opportunity instead of a requirement or a burden? (Just because someone is your close relative, does not mean they want the business as much as you do.) Ideally this starts with a relationship built on trust. You can both be honest about what you want for yourself and for the business.

Setting up the next generation for success

How do you reach a point where the next generation is passionate about the family business and you feel comfortable putting them in charge? Each family business is unique and there are many paths to answering this question. Here are some ways to get there:

Give the next generation important opportunities to work in the business. Ideally years before an actual succession takes place, the next generation should be getting experience in the business, perhaps even working different jobs and in different departments. You want your family members to develop their skills. You want them to get hands-on experience as well as learn about the culture of the business and start understanding the business inside and out.

Encourage the next generation to follow their outside interests. You want the next generation to want to be a part of the family business. Though it might seem counterintuitive, there can be a lot of value to the family business in having the next generation explore their passions and get work experience elsewhere. They will gain skills and build their confidence and get the chance to create their own identity as a working person in another business environment. If and when they decide to return to the family business, they will bring those skills and that confidence with them, and the family business will be all the better for it.

Key tasks and delegation. Each family member wants to find their own place in the operational structure of the business. This will help everyone understand how they fit into the business and to each other. This is especially important in a family business with both family and non-family employees. Existing employees also want to understand how the incoming family member fits into a particular role in the business. Will a new family member have goals; will they too have to listen to and take directions and also need to create metrics to measure progress.

Key roles and responsibilities are also important for you as the current/departing owner. The exercise of writing down your responsibilities can be a great way to take stock of all the things you do. What are the responsibilities and critical skills necessary to run the business? What parts of your job play to your strengths? What is most challenging? Writing out this “job description” can help clarify the job/roles for the family member joining the business, including what aspects of your current role you want to pass on first.

Give the next generation specific areas of responsibility. Are there specific aspects of the business where the eventual new owner of the business can sink their teeth into and make their own? By taking responsibility for one aspect of the business, they will get to develop their skills and implement their ideas within certain parameters, and you get to practice giving up control. New members can take on new areas of growth; can become the head of technology or could apply their skills in financials analysis and/or making meetings work.

Share the challenges. It is important that you don’t shield the next generation from discussions about the challenging aspects of the business – when there is a loss of client; a production error or employees who must be re-trained. This will give a more complete understanding of the business. You would hope that they may bring some fresh ideas or new perspectives. Invite them to share their ideas on ways to help the business in the short-term and over the long-term. Apply their solutions and see if it can be implemented and measured.

A changing business – timing is everything

The next generation may want to make changes to the business that will affect the way business is done or how technology is used. They may want to add new services or products to match a changing target market. You as the departing owner may see the value in certain changes and at the same time, it can be difficult to watch the business going in a different direction. This is a common tension for family businesses. The timing of how to “control” different aspects of the business get shifted, needs to feel comfortable for both the outgoing and incoming owner. If changes feel too fast, you, as the departing owner, may resist implementation and/or sabotage the change. If change feels too slow, the incoming owner may decide that this is not the right fit for them as nothing will ever change!

Letting go – moving on

This may be the hardest step you as an existing owner will ever have to take. It is understandable that after pouring your time, energy, sweat and heart into your business for years it can be very difficult to let go and let others take charge. The business has most likely been central to your identity for decades. The owner of this business is who you are in the business, within the community and within the industry in which you travel. This “letting go” will be a very, difficult process. It will require honest discussion with you and all others. Then, there may need to be a written agreement on the stages of a transition and a timeline for getting there. Yet, once these decisions have been made, you will be able to create a framework for a successful transition.

Creating a succession plan – a peaceful transition

You and your family don’t have to stumble through succession planning alone. It should be a team effort with support from an accountant, an attorney, and a business advisor and/or mentors. They can help you set a reasonable timeline, guide you through the process, help you create a framework for the transition and understand how this leadership change will impact your business. Learning about other family business’ experiences with succession planning can be invaluable as well. Become a member of the Gellert Center to connect with other family businesses and get access to additional resources to help you on your succession journey!

The changing of the guard can be peaceful and very empowering for all concerned. This is always an essential step for the long-term success of any business. Drop the reins and let other family members take up the slack. With a careful and in-depth plan, you will all be ready. You will have people who are qualified to take over; they will bring energy, passion, and new, exciting ideas; the business will continue and grow. In the end, you will not regret it. You not only started and have grown a successful business but determined how it will continue well into the future.

Good work, boss!

Learn more about how Paul Terry & Associates helps small businesses with ownership exit/succession planning.

This post was originally published on the USF Gellert Family Business Center website.

A new beginning

At the start of a new year, many of us want to make a change. Can we change a bad habit into a good habit? Can we make our diet more healthy? Can we start that exercise program we let slip? Can we start meditating or journal writing regularly?

At the start of a new year, we make resolutions. We will volunteer with a local non-profit. We will be active in a political campaign to get our favorite people elected to office. We will engage with our neighbors and become more a part of our community. We want to change our habits and improve our relationships and have a larger impact on the world around us. There is so much to do!

In business, the beginning of the year is a great time for long-term planning – which essentially means planning for growth or positive change. Our planning process may entail making or modifying a to-do list with key tasks and timelines or creating financial projections. For most of us who run very small businesses, the best thing we can do is sit down (either alone or with a trusted support person) and decide on one specific goal or outcome that we would like to reach by year end. We can then make monthly commitments to get there. We will then be just 12 steps away from a completely different place!

That is the crux of taking action. Create attainable goals, outline the steps that are needed to get there (with realistic deadlines), and hold yourself accountable to the plan.

This planning process is essential when you want to make a big management transition, such as adjusting the ownership structure of your business, adding partners/investors or improving management systems. Whatever the transition, it definitely needs to include creating a realistic plan to reach your goal.

As we move into the year, let’s resolve to make a plan and let’s be sure to hold onto the beginner’s mind. That’s the mind full of possibilities. Setting a goal and a particular path does not mean you have to close yourself off to other directions. Keep your eyes open, connect with others, test your assumptions, learn and be influenced. Here’s to a year of change!

“In the beginner’s mind there are many possibilities…”
– Zen teacher Shunryu Suzuki,

Grappling with change

The only thing constant is change. As a small business owner, you know this well. Navigating the ups and downs of sales and marketing trends, hiring employees or letting them go, adjusting your business expertise to match the marketplace. Change is inevitable.

Predictable change

There are some changes you can anticipate, control and prepare for. You may know your product sales will jump during the holidays. You can predict a seasonal spike in sales and be ready with more inventory, increased employee hours, etc.

You can also be the driver of change. You can take a new direction with your business, plan for business growth, or decide it is time for ownership succession or a business sale. You can map out a specific management timeline and take a series of steps over weeks (or even years) to manage the change.

Unexpected change

Then there are the changes that happen suddenly and are completely out of your control. With the coronavirus pandemic and its related public health orders and business closures, you (like many others) may be scrambling to address the impacts on your business while also dealing with the effects to your personal life. You may be feeling out of control and anxious and perhaps at a loss for what to do next.

Here are some simple yet effective strategies that may help during this unprecedented time.

Acknowledge your fears. Think about your fears and write them down. Some of your fears may lose their power once you face them straight on. Recognizing them could lead to ideas for how to deal with them.
Seek support. Reach out to others — friends, colleagues, advisors — who can remind you that you are not alone. They can be there for you with support, empathy and accountability. They may be able to give you a different perspective to help illuminate a path forward.
Be here now. Mindfulness meditation (even for just a few minutes a day) and other awareness practices can help you relax and stay calm. Meditation can help you focus on the present moment and make mental and emotional space for new insights and perspecive.
Remember the past. You have never experienced something like the coronavirus pandemic before. But the way you dealt with past challenges may help you get through this one. What helped in past difficult situations? Did you get support from friends, spend time on self care, actively tackle the problem a little bit at a time each day? Tap into an old practice that worked.
Keep moving. Sometimes the easiest first step is just to put one foot in front of the other. Focus on what you love. Focus on concrete tasks. What you accomplish each day, even if small, will help you deal with the challenge at hand.

Above all, remember to be patient with yourself. Give yourself the permission to wait for solutions to come. You will get through this. We will get through this together.

Teaching Entrepreneurship

I have taught classes for many years, starting as an ESL teacher in Europe and Canada while in my early twenties. I learned valuable and practical lessons from teaching ESL—that we learn through hands-on, practical experience, and that it is easier to do something new and potentially scary when we feel supported and we’re having fun!

To teach English to new immigrants I used the art of play, street theater and shared humor to help students deal with a new environment, develop trust and face their fears related to learning a language. Together we learned about culture and language out loud and in full view of each other, developing a place of trust. Students were then encouraged to take their new knowledge and courageously put it into practice on the way home.

Established and emerging entrepreneurs also deal with an unknown environment and many fears. They are often wedged between the fantasy of what they hope will happen with their enterprises and the reality of money, management and marketing. This can be exciting and scary.

When teaching business owners, it is helpful to use a hands-on approach and involve the whole class or cohort in the process. Humor is key, as well as helping to foster excitement about learning together. Teaching entrepreneurship is not just about lecturing (although content and theory is important), it is a doing process. Students need to take what they learned in class and apply it.

Business workshops or classes can introduce business skills, demonstrate social media and traditional marketing techniques, and present real world financial projections. However, it is also important for students to get out into the real world themselves. They need to test their assumptions. Then they can use the classroom for sharing, reporting back, and group problem-solving sessions with actual business models. The class becomes an important learning community and support system.

When I teach small business classes, students research how their business idea fits in the marketplace with face-to-face interviews, they expose their ideas to the reality of the numbers by doing rigorous financial analysis, and then they develop a practical, realistic plan of action that they can test week by week. This plan must be adjusted as the marketplace and then their own level of confidence and excitement reveal the right directions, with the class support there to help.

The focus must be on empowerment and building confidence as well as teaching entrepreneurial skills. Small business owners need to tap into their passion and also have the ability to mitigate risks. It is important for business owners to continually cultivate the right balance of business skills and intuition.

By guiding students through an engaging curriculum, giving them access to resources and mentors, and providing direction related to good management practices, we can help entrepreneurs launch and sustain a successful venture. The process is fun and richly rewarding for both student and teacher, because in the best learning environment, the teacher is learning from the students, too.

Selling Your Business – Essential First Steps

Are you thinking about selling your business? We assist small business owners with management transitions. For clients interested in selling their businesses, we help them focus on these essential first steps:

1. Understand your business exit motivations

Why do you want to sell your business? Perhaps you want to start a new business or focus on other pursuits. Maybe you are burned out, at odds with your business partner, or ready to retire. It is important to understand what is motivating your decision to sell your business. Your current perspective and emotional outlook can affect your approach to the sale and the timing of your business exit.

2. Prioritize your sales goals

It is good to start a business sale process with a clear idea of your desired outcomes. Are you looking to sell immediately? Is a high sale price the most important factor for you? Do you want to remain involved in some capacity? Do you have preferences for who buys the business? Do you want to influence how the business operates after you sell? Is a cash sale necessary or will you consider seller financing? Clarifying what you want will affect the sales approach you take.

3. Assess your business’ current condition

Is your business a good sales prospect? Is your business likely to attract a buyer? Are there areas of the business that will need improvement before you sell? When looking at each aspect of your business, you must try to understand the business from a potential buyer’s perspective. You need to consider your sales and profit history, the business’ financial condition and your products or services. For a brick and mortar business, look at your business location, your facilities and your equipment. To be a good sales prospect, your business may need to retain your employees and your clientele…and perhaps even you for three to six months!

4. Assess the current value of your business

How much is your business worth? Valuing your business helps you set an asking price. There are different ways to determine the value of a small business. You will need to consider your tangible and intangible assets and the business’ prospects for growth. You can hire a business valuation expert to do a business appraisal or work with a business broker to request a Broker’s Opinion of Value. With recent tax returns and financial projections in hand, it may be sufficient to work with us to do some simple calculations to estimate a realistic amount.

Now you are ready

Once you are clear on your motivations, your goals, and the current condition of your business, you are ready for one of these next steps:

• Prepare to present a sale-ready business to interested buyers.

• Invest the time to make your business more attractive to buyers and increase its value. (This would start with an action plan and timeline for each area of the business that needs improvement.)

• Offer to sell the business at its current sub-par condition (knowing you may have lower interest and/or a lower sale price).

• Continue to operate the business as well as you can and close it when you are “done”, selling any tangible assets.

We can help! We work with clients through these initial business transition steps. We review the current business so you can consider a business sale. We help with business improvement action plans to improve the value of your assets (even if you do not sell right away). We help you compile the documentation necessary for a business sale. Learn more.

The Exit Planning Audit: Are you ready to go?

At some point, most small business owners will ask: What is next for me beyond this business?

“I want to pursue something new.” “I’m burned out.” “I wonder if I could sell this business.” “My family member or employee wants to take over, and maybe it’s time.” “Retirement sounds good!”

If you are having a similar thought, it may be a good time for a business audit. A business audit is essentially a business check-up — you are assessing the health of your business so you can make well-informed decisions about next steps. A business audit is a great management tool to use at any stage of business… ideally annually!

An exit planning business audit is a tool to help you specifically evaluate your readiness for an ownership transfer and determine if your business is a good sales prospect. Will your business be attractive to a buyer or will it need improvement prior to offering it for sale? Is the business’ goodwill of high enough value to attract interested buyers, or are you better off selling physical/tangible assets and simply closing the business?

Here are some initial business audit questions to consider when exploring a business ownership transition:

Your business exit motivations:

Why do you want to exit your business?
What do you want to do next?
Do you want to leave completely or stay involved in some way?
Do you have any conditions for a business sale?
Do you have a vision for your business even after you aren’t involved?

The status of the business:

Do you have up-to-date financial statements that match your tax returns?
Have sales revenues and profits consistently increased over the past few years?
Does your business have a distinct competitive advantage?
Does your business operate with clear written procedures and agreements?
Can your business operate without you, or with you in a different role?
Does your business have opportunities for growth?

Your answers to these questions (and many more!) will help you determine the right next steps for you and your business, and the best timeline for an ownership transition.

A business exit can be complicated and we encourage you to start thinking about your business exit well in advance. You want time to consider what an exit would mean for you and your business well before you are ready to make this change. You want a transition that won’t negatively affect your employees and the vendors, clients or customers reliant on your business.

Don’t wait until your business is struggling or you are desperate for a change before you act. With thorough exit planning, you can improve your readiness to transition and the value of your business!

At Paul Terry & Associates we help small business owners answer the many questions related to ownership transition. We take clients through an exit planning audit — prioritizing business ownership transition motivations, evaluating the business’ strengths and weaknesses, and assessing the readiness for a business sale. Then we help business owners create a plan for a successful transition.

Learn more here!

A Successful Management Transition

Are you thinking about transitioning out of a leadership role in your business? Stepping away from your small business does not have to mean giving it up completely. It could mean removing yourself from day-to-day operations or delegating management responsibilities to someone else so the business can continue to function smoothly without your constant presence.

In any business transition—whether it involves a change of business ownership or just a change in management, we encourage business owners to consider these steps:

1. Assess your current business

Before making any big management change, understand the value of your business and the strength of your existing systems. Be sure to ask key questions and audit your business.

Have you built business assets (both tangible and intangible) that have value?
Do you know what your business is worth?
Do you have operational systems that can be understood by others in your business?
Do you have key employees that could take on increased responsibilities?

2. Address training and control

To step away from the business, your employees need to be prepared to take on more responsibility. You have to be ready to give up some control. If senior members are taking the reins, they need to know the details of the business and understand what will be expected of them. You may need to hire new senior management who must get up to speed and gain your trust (and your employees’ trust). Any new manager (or eventual owner) needs to understand the business inside and out and develop the skills needed for success. Your role will be to facilitate all of this.

3. Take your time

In any big business transition – whether a change in business ownership or a change in management – a thoughtful, step-by-step process is ideal, if possible. A gradual transition allows for a new manager/owner to grow into their role. It can take time to gain confidence and also credibility with all stakeholders. As time goes on, you will be able to assume a more advisory (or backseat) role. By then you will be ready for it. If selling your business is the goal, you will need time to prepare for the sale and find the right buyer. So… look at a realistic timeline and set the right pace for you.

4. Get help

It can feel impossible to focus on a future transition while attending to the day-to-day demands of the business. You are managing services, employees, cash flow, marketing and day-to-day operations. How can you focus on your transition goals when so many other aspects of the business need your attention right now? An advisor, support partner or support group can help you create a transition plan. They can also help you stay accountable to the plan within a realistic timeline. Other professionals such as an accountant or bookkeeper can help you understand the financial health of your business and the ramifications of any change. At some point, you will need legal help, too. Get the professional help you need to hold yourself accountable and make the right decisions.

5. Your identity as a business owner

As a small business owner, your whole identity may be wrapped up with your business. You may think you want a change but you may feel reticent about losing control of the business and the change of personal identity the comes with stepping away. Perhaps you would no longer have a reason to stay involved with a merchants group, or you may no longer be invited to participate in certain business networks. Without your business identity, you may need to redefine or reinvent yourself. This is an important step to take!

As a small business owner, you pour your heart, lots of time and often lots of money into your business to make it succeed. After this investment, you want to get the compensation you have earned and see your business continue to flourish after you step away. Creating a solid transition plan with a realistic timeline and a good support team can help make this goal a reality.

Paul Terry & Associates help small business owners with transition planning, which could mean bringing in a partner, stepping back from a full-time management role and/or preparing for a business sale. For clients preparing or a management transition, we help you:

Work through the challenges related to change and new roles
Install effective management metrics and timelines for the transition
Hire or train committed management staff
Create financial projections and estimate value for any transition
Produce and implement an exit/succession plan

Learn more about our ownership transition services.

It takes a beginner’s mind

“In the beginner’s mind there are many possibilities, but in the expert’s there are few.”

In Japan the phrase shoshin means “beginner’s mind”. According to Buddhist monk and teacher Suzuki Roshi, this is the goal of Zen meditation practice—to have a beginner’s mind, a mind open to everything and ready for anything.

In his book, Zen Mind, Beginner’s Mind, he writes, “In the beginner’s mind there is no thought…of achievement, no thought of self, we are true beginners. Then we can really learn something. The beginner’s mind is the mind of compassion. When our mind is compassionate, it is boundless.”

Keeping a beginner’s mind is at the heart of a successful entrepreneurial venture. For the emerging business owner, everything is in a beginning stage. Everything may seem new and groundbreaking. Yet to develop a unique business model and a specific selling proposition, we need to be creative, respond to a changing marketplace and deal with continual competition. We have to constantly stay open to what we can learn and then put into practice in our business.

For the established business owner, we are now successful to a certain degree and yet always trying to re-invent ourselves and our approach to business. We may have new products, design new services or attract more clients. Perhaps we are attempting to have more sustainable practices or adjusting our management style to be more transparent. Staying open and keeping that “beginner’s mind” can lead to “ah ha” moments, whatever our level of expertise or experience. Through the beginner’s perspective we stay flexible and compassionate—both with ourselves and the stakeholders all around us.

Being a successful small business owner is a blessing. We have a chance to run our business just how we want to do it… not how someone else is telling us to do it. We have a principle, a perspective and a generosity that we want to express. We may be established business owners but we are also beginners. Every day we look at how to adjust to changes and make a statement that will make a difference and have an impact. As a small business owner, we can begin – again and again… and bring the world with us – one business transaction at a time.

Where did the time go?

This is the question we all ask, and perhaps small business owners ask the most! Many time management experts say that the key to managing our time well and being productive is figuring out what is most important, and making time to do that first. But how can we do that when it all feels so urgent?

The pros and cons of the to do list

Many of us keep detailed to-do lists. Our list will grow and grow and can become so long that it’s easier to focus on the “simple stuff” we can quickly complete and check off the list. We put off the tasks that will be most strategic for our business, the tasks that will help us grow and be a success.

Multi-tasking

As small business owners we wear many hats and must often multi-task. We have the tendency to want to do it all ourselves (even when we are stuck) and we don’t want to delegate (or don’t know how to). We are often completely consumed in the business without making time to work on the business, or we let personal stuff get in the way of how we run our business.

The effects of overwhelm

There can be a lot of emotions tied up with how we spend and “manage” our time, too. When we have too much to do we can get overwhelmed and frustrated. Our actions become non-productive. We procrastinate (ignoring what we know we must do) or we sabotage ourselves (purposely doing something counterproductive), and we end up paralyzed – blaming ourselves and sometimes even giving up.

The 80/20 Rule

One way out of this overwhelm is by paying attention to the Pareto Principle or what is often referred to as the “80/20 Rule”:

If you can figure out which tasks are producing your business’ results, you can spend more time on those activities and less time on others. Often if a task makes you feel uncomfortable or if you are putting it off, it may be a sign that it needs your attention!

As a simple way to start, Perry Marshall, author of 80/20 Sales and Marketing, recommends that we flip our daily to do list. “If there are 10 things you need to do today, odds are that one task is worth 10 times more than the rest. It is natural to want to put it off and get the other tasks done first but you need to switch it around and first focus on that one thing that is most important.” Do you need to write your marketing plan, call a disgruntled customer, create financial projections or go after a new client? Focus on that key task first.

When I talk to my business students about time management I share the same essential message. The first step is to identify the priorities — or BIG ROCKS — for your business and then structure your time to put them first. If you are a small business owner (particularly if you are just launching your businesses) you really cannot do it all. You need to focus on the key 10-20% of your business that can bring the best results now. Once you have some comfort in or mastery over that area, you can expand your focus.

Taking action

Now, it’s time to take action! Starting first thing tomorrow…

Look at your to-do list and pick only three tasks for the day – tasks that are the most important for your business right now. (What task will help you make money now? What task will build a key business skill now? What task will help solve the most critical issue?)
Tackle only one task at a time.
Set a start time and end time for each task to keep yourself focused.
Pick someone to hold you accountable and share what you are doing with them.
Don’t forget to get rid of all distractions. Clear other work off your desk, turn off email, put down your phone… and get to it!

The reality is that your to-do list will never go away and it will probably always be long. It may be helpful to write down all your tasks so they don’t keep swimming around in your head. But the goal is to not get distracted by your list.

And sometimes is important to put away the list entirely. Our best business breakthroughs often come when we aren’t focused on our business. Sometimes it is only when we take a break, that we can gain perspective.

Are you ready for your encore?

The traditional idea of retirement is increasingly becoming an old notion—either because people need to keep working as a financial necessity or because they still want to work. Instead of retiring, many people are looking to do something on their own terms, and do work that really matters.

The term “encore career” is being used to describe a new career later in life—one that is focused not just on making a living but on making a difference. Encore.org—a San Francisco non-profit that helps people pursue “second acts for the greater good”—defines encore careers as jobs that combine personal meaning, continued income and social impact in the second half of life. And according to the organization, the idea is catching on. As many as 9 million people ages 44 to 70 are already in encore careers, with 31 million more interested in the idea but not sure how to make the transition.

For many, the encore career most appealing is starting a business. In 2012, nearly one quarter of all new businesses were started by people ages 55 to 64. According to the Ewing Marion Kauffman Foundation, business creation by older Americans grew more than 60% between 1996 and 2012.

So if you are interested in starting your own business as an encore career, where do you begin?

1. Follow your passion! Your business will only succeed if you love what you do. As Steve Jobs says, “The only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do.”

2. Know yourself well. Assess your strengths and weaknesses to determine if you have what it takes. Do you have some of the traits common to successful entrepreneurs? What are your existing skills? Older entrepreneurs have an advantage — at this point you probably have a good sense of what you love to do and what you can do well. Now, instead of doing that work for an employer, you can do it for yourself.

3. Get out there to connect and learn. There is so much to learn from others in the field. Read, take classes, join small business groups of like-minded people, find organizations focused on the issues you are passionate about, as well as organizations focused on senior entrepreneurs. Starting a business can be a risky endeavor but much less so when you have relevant skills, a sense of the marketplace, and an understanding of what others have tried already and what has succeeded or failed.

4. Don’t do it alone. Starting a new business can be a significant undertaking. You need a strong network to help you navigate through the rough patches and mentors who will share sound guidance. It is important to surround yourself with supportive and insightful people. As someone with life and career experience, there is a good chance you have a strong network of contacts already — people you can turn to as a support system and people who might eventually be customers or clients.

5. Use all the business tools you can find. There are many non-profit organizations and government agencies committed to helping people start their own small businesses. In San Francisco, the Office of Small Business is a great resource and there is a San Francisco Business Portal for finding all the licenses and permits you’ll need. Check out our website for more resources.

6. Money, money, money. There are many small and home-based businesses that can be launched without much start-up capital. No matter your size, knowing the resources you have and projecting what you may be able to earn is critical. How much do you need to make each month to cover expenses and make a profit? What are your start-up costs and how will you fund your transition? There are many ways to fund your business, with crowdfunding platforms becoming an increasingly popular strategy.

7. Make a plan! Your plan doesn’t need to be lengthy but it’s helpful to give some thought to marketing, money and management before you begin. A business plan can force you to clarify your idea, understand the external conditions that might affect your business, and set realistic goals with benchmarks to track your progress. Doing the research, talking to people and creating realistic financial projections will give you confidence to get your business started and keep it going. Renaissance Entrepreneurship Center offers a 12-week Business Planning Class to help you through the process.

Above all, what’s most important is to get out there and keep learning. Starting a small business is tough but it can be so rewarding both for the people you serve and the person you become. You are never too old to learn something new and make a difference.