Why You Are Never Too Old to Start a Business

It is easy to make the assumption that only young entrepreneurs with loads of ambition and a thirst for success are capable of starting their own business, but the truth is, anyone with the right mindset can start a business, even the over 50s. As the general population ages, older folk are redefining the marketplace. They might not have youth on their side, but they do have a wealth of experience and a willingness to work hard. 

Why Start A Business In Later Life?

Thanks to advances in healthcare and medicine, people in the western world are living a lot longer than their predecessors. As a result, it is not uncommon for octogenarians to be full of vigour and more than capable of extending their working life. So instead of sitting at home, bored, why not make the most of your health and get back out there and start a new business venture?

Retirement used to be something older people looked forward to. They worked hard all their lives, channelled money into a pension fund, and waited for the day they could sit back and enjoy the financial security of a regular retirement income. Unfortunately for many, a pension plan is no guarantee of enjoying a decent income in retirement, so starting a business can boost your retirement savings and help you enjoy the finer things in life.

Starting a business venture gives you a reason to get up in the morning. Retirement for some is the beginning of a downward decline, both physically and mentally, so instead of succumbing to the mental fugue of old age, stimulate your brain and enjoy the challenge of working for yourself. 

What Can Older People Bring To The Entrepreneurial World?

Older people often have decades of business experience. They may have successfully managed businesses in their younger years, which makes them well placed to repeat the experience in later life. Use the business skills you have accrued over the years and make them work for you. 

Issues To Consider When Starting A Business In Later Life

Finance is the biggest hurdle you may encounter if you wish to start a business in later life. No matter how successful you feel your business venture is likely to be, putting your retirement pot on the line might not be sensible, especially if you have dependents to consider. But if you need to secure financing from a bank or other lender, consider your options very carefully. 

Long Hours

Running a business inevitably means working long hours. This means you must be passionate about what you are doing as well as capable of putting the extra time into your embryonic venture. You will also need a strong support network in place. No matter how enthusiastic you are about your new business venture, one of the downsides of growing older is a slow reduction in energy levels. With this in mind, make sure you delegate responsibilities to others where possible and do not try and do more than you are capable of.

Bio Frank retired ten years ago, but within twelve months he was bored silly, so he decided to start his own business. He had a wealth of experience to draw upon and he fully understood his duties as a director. Now he owns a successful family business and enjoys posting useful blogs online.

How to Keep Financial Records for a Small Business

Running a small business can be a time consuming affair. Most small business owners work long hours and the thought of doing admin work at the end of a long day is hardly a happy one. But, unfortunately, admin work is an essential part of running a business and if you fail to keep accurate financial records, you are storing up a truck load of trouble for further down the line. 

Why Do I Need Financial Records?

Financial record keeping is the best way to keep track of how your business is performing. If you have no idea how much you are owed by your clients or how much you have spent on materials, how do you know if you are even making a profit? It is also worth pointing out that keeping accurate financial records is a legal requirement in a number of countries, so if the thought of doing the books gives you a massive headache, just think about how much worse that headache would be if you had a tax audit due and no financial records of any description to hand.

What Are The Key Financial Records All Small Businesses Need To Keep?

• Income – all income needs to be recorded. At the very least you need a cashbook that records money in and money out, but for the majority of small businesses, this will be too simplistic. 
• Expenditure – business expenditure can be recorded in a cashbook, but you still need to keep copies of all invoices and receipts for tax purposes. Make sure you file these in a manner that makes them easy to find should it be necessary as part of a tax audit. 
• Customer records – it is essential to keep accurate copies of orders, invoices, credit notes and anything else related to customer transactions. You need to know how much your customers owe and how long their accounts are overdue as this directly affects the rest of your business. 
• Bank statements – always check bank statements regularly and reconcile them against your accounts. Banks can and do make mistakes, so spotting these early will save you a lot of grief (and money). 
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What Happens If I Haven’t Kept Good Business Records?

The main problem small businesses have if their records are inaccurate or simply non-existent is that at some point the taxman comes knocking on their door. Since it is a legal requirement to keep accurate records, failing to keep useful accounts and maintain financial records could well end up being a very expensive mistake. 

Should I Do My Own Accounts?

If your business is very simple, you should be able to do your own bookkeeping using a simple spreadsheet programme or purpose designed accounts book. However, if maths is not your strong point or your business transactions are complex it is a good idea to hire an accountant to keep your financial records in good order. Alternatively, you could do a combination of both - you do the day-to-day record keeping and let your accountant do the end of year accounts and tax calculations.

Bio Laura runs her own business and keeps an online blog of her experiences. She is well aware of the penalties for failing to keep accurate financial records, so she uses the services of www.liptrottandwoosey.com to help her with the bookkeeping and end of year accounts.

5 Bad Business Trends to Avoid

Some business practices are desperate. Others are just simply bad. While most people freely acknowledge that generating business is hard work and staying in the black is often a case of living on a knife edge, there are still some things that you should always avoid. 

1. The Hard Sell 

At YOUR Insurance, we sell business insurance and if you ask our sales staff how you sell to someone who really doesn’t want to buy a policy, the general answer that you get is “you don’t”. You can challenge yourself and pitch in different ways or try and explain your product in different ways, but if you instead decide to go in with the hard sell you’re going to either browbeat someone into buying something they don’t want and will probably cancel or send back for a refund, or push someone further away to the point that they’re going to carry a highly negative attitude towards your business to anyone else who will listen. 

The hard sell is an old fashioned sales technique that has fallen massively out of favor because it chases short term goals and creates long term problems. More than anything else, it can make you sound desperate, despicable and unlikable. 

2. Darth Vader Deals 

Star Wars analogy coming up, so bear with me if you’re not a colossal Star Wars geek like me – I promise I’ll explain. 

There’s a negotiation technique that I’ve seen recently which reminds me of Darth Vader dealing with Lando Calrissian in the Empire Strikes Back. Basically, Vader, the villain, strikes a deal with Lando, the not-really-a-villain-but-person-who-has-made-questionable-choices, for him to betray his friends and hand them over to the galactic empire in return for the empire leaving his space station alone. As part of the deal, he wants his friends to be able to remain safely with him, but once the deed is done, the deal starts to change with Vader changing his mind about various elements further and further away from what they originally agreed. 

If you do this to your prospective clients (change the deal, not sell them out to the empire) they will stop trusting you and will be less and less likely to do business with you (actually, selling them out to the galactic empire will have the same result thinking about it). 

I always think of bartering this way: If I ask how much something is, someone tells me it’s £20 and then when I say I can’t afford it they turn around and say “well how about £15?” I am deeply suspicious. If it’s £15, why didn’t they start with that? How can I trust that it’s £15 if it isn’t £20? Perhaps it’s actually £10 after all? How far can I push this? I know this is often how the sales-game is played, but it’s a dodgy game in my opinion. 

If the terms of the deal change quickly, then how can anyone trust the current terms? By all means work to come to a compromise with negotiations, but avoid undercutting yourself in a way that makes you look dodgy or just outright altering the terms on the fly. 

3. Demanding payment for no actual work 

Let me paint you a picture. Your laptop breaks down to the point that sometimes it starts up slowly and sometimes it doesn’t start up at all. You send it off to be repaired or replaced and wait for a couple of weeks for the work to be carried out. Two to three weeks later, the laptop is returned with a form attached to the lid informing that the laptop is broken with no further help or advice offered. An invoice for £500 follows the returned machine a week later. 

An extraordinary business model there: “Broken Laptop Confirmation Service – Only £500 Per Diagnosis! We will tell you if your laptop is working or not!” 

Make demands for payment when you have done something that is actually something you can be paid for, otherwise you are going to tread dangerously thin ice when it comes to customer retention and corporate reputation. It wouldn’t have been unreasonable for the company above to charge some sort of admin or shipping fee, but charging what pretty much amounts to the cost of a replacement laptop without actually doing anything other than sending it back is nefarious at worst and outright incompetent at best. 

4. Hiding costs 

How many times have you seen something online that looks like a really good deal only to be almost caught out by hidden costs in the form of shipping fees, or to find out that it didn’t include VAT? 

Don’t be this business. A very low price might attract a few more eyeballs, but those paying attention won’t go through with it and those not paying attention will demand refunds and complain about you to either your friends or the internet at large.

 

5. Hiding your contact information 

Sometimes you just need to talk to someone. If you have a website and you have not got some form of contact information up there, you have failed at satisfying one of the main benefits of having a website. Something that most companies fail to acknowledge is that the majority of their site visits are probably from people looking for an address or a phone number. Additionally, if you’re only form of contact is a web form which asks for details and then gives a vague “thanks for your interest, we’ll be in touch” then that’s still a partial fail, because I doubt anyone really trusts them. 

It’s fine to promote one form of communication over others, but have some way of getting in touch displayed. You won’t have the world trying to call you and listing a phone number on the Internet will not result in the deluge of prank calls as you might be concerned about. You are better off listing some way for your clients or prospective clients to get in touch with you. This will help existing and new business tremendously without you having to do a thing. 

Summary 

It’s easy to fall into bad habits and sleepwalk into poor business decisions. Try and take a step back from time to time and work out if what you’re doing makes sense from a customer’s point of view. 

Written by David Hing for YOUR Insurance, a broker specializing in business insurance and landlord insurance.

Making it Through Your Financial Crisis

Payday Loans Neon Sign (Photo credit: rinkjustice)

Some people are saying they are seeing some positive economic signs, but many are still suffering from the economic downturn. The problems usually are an unexpected bill coming due or a medical expense. The most common one is the family car needing an unexpected repair. You don't have enough money in the bank to cover the bill and you have nowhere to turn. Your next payday is two weeks away and you need the money now. What can you do?

There is a way out and it’s payday loans. Payday loans are a financial product which helps people in need, by advancing them cash in a quick and easy way. Payday loans provide a solution to your need of short term cash by not giving you credit but by advancing cash for a short term and charging a fee.

Many people are apprehensive about using a payday loan service because of some bad press. But there are many companies that have served their customers well and built a reputation of excellent customer service. Companies today value their customers and they use cutting edge technology to provide great customer service. They offer valuable services that are very useful for those people who use them responsibly.  After all, where else can you look for a dependable source for immediate cash in any kind of emergency?

An online payday lender provides a process for a quick application. Most obtain fast approval and their money in a timely fashion. From the comfort of your home you enter your details online and you should receive approval within only a short time. It takes less than 2 minutes to apply and customer service will get in touch with you and inform you when you have qualified for the cash advance.

Payday loans are there when you need them. Their purpose is to help you out in any situation that you need quick cash and it is your responsibly to use them wisely and only when in need.

The only requirements you need to apply for a short term loan is a bank account. You must have a job or a way to prove income and be at least 18 years old. Go to cheapest pay day loans uk.

Is Private Healthcare Insurance a Good Buy for UK Over 50s?

People living in the UK are entitled to free healthcare from the National Health Service (NHS). This might sound like a great deal, but unfortunately it does have its downsides - most notably, long waiting times if you need any kind of procedure and standards of care that are entirely dependent on where you live. Because of the healthcare lottery, many seniors choose to buy private healthcare insurance policies to enable them to boost their existing NHS healthcare. But are private healthcare insurance policies a good buy for the over 50s, or are you throwing your money away for no good reason? 

How Do Private Healthcare Insurance Policies Work?

Private healthcare insurance is just like any other insurance policy. You pay a monthly premium that entitles you to receive a wide range of medical treatments, including consultations, physiotherapy, medical care in your own home, and surgical procedures in a private hospital. The main thing private healthcare does not cover is treatment in the event of an accident or emergency, and if this type of event occurs, you would need to be treated in an A&E department of an NHS hospital. 

What Are The Advantages Of Private Healthcare Insurance?

One of the main advantages of private healthcare insurance is that you do not need to wait an interminable amount of time to see a consultant or receive treatment for a medical condition. Instead you can make an appointment at a time to suit you and if you require a hospital stay, you can enjoy private, comfortable facilities and one to one nursing care. 

What Are The Disadvantages Of Private Healthcare Insurance For The Over 50s?

Since insurance companies price their products based on the level of risk to them, medical insurance for the older generation is inevitably a lot more expensive than policies aimed at 20 year olds. The older we get, the more likely we are to suffer from health problems and, unfortunately, the more likely it is that these health problems are serious. So the older you are and the more pre-existing medical problems you have, the more likely you are to be charged a small fortune for private healthcare insurance. 

What Are The Options For Private Healthcare Insurance?

There are different levels of private healthcare insurance and several different insurance companies who specialise in the over 50s, so if you are considering buying a private healthcare insurance policy, it is worth spending some time researching the pros and cons of each available policy. 

Is Private Healthcare Insurance Worth The Premium?

This very much depends on whether you want the peace of mind of knowing you don’t have to run the gauntlet of NHS healthcare. Even if you are a healthy 50 year old with no history of illness, insurance companies will still view you as a high risk applicant, so your premiums will be costly. However, if you have are worried about waiting times for non-urgent conditions, the cost may be worth it. Just bear in mind that any pre-existing conditions must be declared at the outset and will not be covered by the policy.

Bio 

Janet writes for a number of blogs aimed at seniors. She decided to buy private healthcare insurance after her sister was diagnosed with hearing problems and needed help from www.yourhearing.co.uk. In the last two years, it has been money well spent and she doesn’t regret the cost.

Boost your Pension with Property Investment

Property market (Photo credit: Alan Cleaver)

Twenty years ago, a carefully cultivated pension plan was your ticket to a comfortable retirement. Sadly things have now changed and with interest rates on savings accounts dismal and pensions performing at an all-time low, it is a good idea to look into alternative ways of generating some extra income if you want to enjoy your twilight years. So is property investment a good idea, or is becoming a buy to let landlord more trouble than it’s worth? 

The State Of The Rental Market

The UK rental market is currently booming. First time buyers are unable to gain a foothold on the property ladder and millions are being forced into rental accommodation as the recession continues to bite. As a result, demand for rental accommodation is far outstripping supply in many areas, which makes property investment a smart move for anyone with some cash to spare. 

How Easy Is It To Get A Mortgage?

Lenders have tightened up their lending criteria considerably since the property market crashed in a spectacular fashion a few years ago. Most now expect borrowers to have at least a 25% deposit, so unless you have the cash, you will struggle to obtain a buy to let mortgage. Lenders will also expect your anticipated rental income to be higher than interest on the loan. 

Will Buy To Let Properties Generate A Good Income?

The average savings account pays less than 1% these days, so even if you have tens of thousands stashed away, you will be lucky if you can generate much income from it. The alternative is to invest in some high-risk schemes, but if this is your retirement pot, you might not want to play Russian roulette with your savings. Buy to let yields are a much better bet in the current market - rental yields do vary, but on average you can expect to see a good 5-6% return on your investment, even taking into account expenses incurred. 

Things To Consider Before Investing In Buy To Let

Buy to let property investment is an excellent solution for a lot of people, but it is not all plain sailing, so before you jump in feet first, you need to think about a few things.

• Location – not all locations are equal. London and the south east generates a far higher rental income than some other parts of the UK, so do your homework before you invest in property in your area. 
• Choose your target market carefully – decide in advance what type of tenant you want to attract. Young professionals, students, families or social tenants: they all have different requirements. 
• Void periods – you will need to factor in periods of time when your property is empty. No tenant means zero income, so bear this in mind. 
• Self-manage or letting agent – managing rental properties requires a time commitment, which might not be convenient, but if you use a letting agent, the service comes at a price. 
• Legal responsibilities – landlords are subject to all kinds of legal requirements, so make sure you are aware of your legal responsibilities before you invest in a buy to let property and advertise for tenants. If you fall foul of the law, you could end up being prosecuted. 

Bio

John is approaching retirement, so he has been looking into ways of maximizing his pension income. He used the compensation he received from www.hardwickmissoldmortgages.co.uk and invested it in a small terrace property in his local area. Now he enjoys a steady income rental from a young professional couple.