The magazine of the Melbourne PC User Group Editorial Ash Nallawalla ash@melbpc.org.au |
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Self-Employed at 50
Some months ago I mentioned that I was laid off a few days short of my 50th birthday. I had registered a business name and was going to specialise in a niche area of marketing. I wrote about my success at search engine optimisation (SEO), which had stemmed from a desire for my Web pages to rank well.
For the past two months I have been working remotely for a US company on a near-full-time basis. It started with SEO and has now progressed to managing their online advertising campaigns. It is rewarding to see a slight turn of phrase lead to an increase in paying customers. I have also picked up smaller contracts - all in the US. Some of these are on their East coast and have offices in Europe, so I am often sleep-deprived. It is addictive to analyse the clickstream and tweak some words or change the bids. Yet, it is a good feeling.
When I put out a call for reader contributions for a proposed article on job hunting for the middle-aged, Bob Mayston was good enough to share his experiences with us, so here it is. More contributions are welcome.
| Self-Employed at
60 Bob Mayston Why did I start my own business at 60? There were two main reasons. First, I always wanted to "have a go". Second, and more importantly, senior management retired at 60 at my last employer. Thus, my involuntary "retirement" advice was confirmed six months before my 60th birthday. I then decided to start my own business. I used those six months to decide my fields of activity and make contacts useful for the opening day. I commenced on my 60th birthday and at aged almost 80 it is still going today albeit at a lower level of activity. I registered my company, advertised in the most popular local trade journal and set up a home office. I do not recommend first giving oneself a holiday and so losing momentum and possible motivation. I would emphasise three points. First, do you have what it takes to be successful in Small Business? People skills are certainly important. Second, what will be your new business? Be wary of venturing into fields where you have no previous exposure. Third, who and where will you get your paying customers? Mostly this means "getting on your bike" and digging them out by hard work with "at the coal face" interviews or cold turkey calling. By all means make appointments by phone but a personal interview is essential to build a lasting relationship. After all, business really is the creation and retention of customers. It's a personal thing - computers cannot do this for you. Your computer is an essential "tool of trade". but don't forget the KISS principle. It's easy to get carried away with software that is more suited to larger businesses. Until you employ more than two people your IT requirements are fairly basic. In the beginning you should devote maximum time to growing your business face-to-face. For this, your information tool may best be served by simple, hand-written index cards. You can later edit and transfer to your desktop. After 20 years of running a small business I still use this method and I don't have to worry about anyone stealing a computer from the car. Getting and retaining customers is never more vital than in the first months of a new business. Your former employment area is the best and most fertile place although in the professions, you might have restriction clauses in your severance agreement. If this is the case get a lawyer to vet the agreement as the law cannot prevent you from earning a living. Employers often try and bluff you into a submissive agreement. If so, consider getting a lawyer's advice on what are the consequences if you don't sign. Lawyer's fees may cost money but it's tax deductible in the new business anyway. Finally some basic bookkeeping skills are in my view, essential. Understanding cash flow will help you govern and profitably grow your business. You must have a suitable accounting package to provide the required taxation and BAS reports. The need to do this quarterly is a good discipline and gives you a good barometer of the state of your business. I use QuickBooks, although MYOB would do it as well. You can run reports on your customers and track their payment record. In a small business you simply cannot let customers run up extended credit. A request for this is often a sign of approaching problems. Don't forget it's your money. You can also construct reports on buying patterns and other data that may help in projecting your business. Running a successful small business is very rewarding, but it is also very demanding, particularly in the early developmental days. It's not recommended for the faint hearted. Once successful, however, you may look back and justifiably say "I did it my way". |
Reprinted from the July 2003 issue of PC Update, the magazine of Melbourne PC User Group, Australia
