Thinking about starting a business in midlife? You’re not alone. More and more people are taking on the role of midlife entrepreneur – and thriving in it. Back in 1996, only 15 percent of people ages 55 to 64 owned a business. Today, that number has jumped to 25 percent. And among women small business owners and solopreneurs, nearly 70 percent are from Generation X – the generation now hitting midlife with fresh ideas and a lifetime of experience.
Of course, making a big change after years in a traditional job can feel overwhelming. A midlife career transition often comes with a lot of questions: What kind of business should I start? How do I navigate the emotional and practical shifts? What about the financial risk?
But here’s the thing: none of those questions are reasons to give up on your dream. If anything, they’re signs that you’re ready to take the next step. What you need now is the right support — and a solid plan to make your vision a reality.
Let’s walk through the key steps to becoming a successful midlife entrepreneur, from evaluating your readiness to choosing the right business model and exploring funding options.
Planning for Your Own Business
Step 1: Check in with Yourself
Some people dream about owning their own business for years. Others find themselves thinking about it after a big life change — like a layoff, early retirement, or just feeling ready for something new. No matter how the idea comes to you, it’s important to take a little time to reflect and see if you’re personally ready.
Ask yourself a few honest questions:
- Do I like working solo, or in small teams?
- Am I comfortable being the one making the final calls — and taking full responsibility when things don’t go as planned?
- Do I have a support system that encourages me?
- Can I build the kind of work-life balance I want while running a business?
Being real with yourself upfront can help you move forward with more confidence and clarity.
Step 2: Take a Look at Your Finances
Starting a business is exciting. But it’s also a big financial commitment. It’s smart to take an honest look at your money situation before diving in.
Ask yourself: Can I afford to go a while without making a profit? Many businesses take up to two years to really get off the ground, so it helps to have a financial cushion — and to be emotionally prepared for that stretch, too.
You’ll also want to think about startup costs. Most businesses need some upfront investment, whether that’s for equipment, marketing, or getting the doors open. Take a conservative look at what you can comfortably put toward your business without putting your personal finances at risk.
Being financially ready doesn’t mean having everything figured out. It just means knowing where you stand and planning ahead. (Keep reading for an overview of the most popular ways to fund your business.)
Build your financial strategy like a pro — here’s how.
Step 3: Pick Something That Matches You
One of the best parts about becoming a midlife entrepreneur is that you get to build something that actually excites you. Maybe there’s an interest you’ve had on the back burner for years, or a new passion you’ve recently discovered. Now’s your chance to turn that into something real.
Think about what lights you up. Do you love to travel? Are you passionate about wellness, education, or helping people navigate big life transitions like retirement or parenthood? Your business can grow out of the things you care about most, whether it’s a personal passion, a challenge you’ve faced, or a need you’ve seen in your community.
Take some time to make a list of your interests and experiences. The more your business aligns with what you enjoy, the more likely you are to stick with it and actually enjoy the journey.
Not sure what business to start? Follow these seven steps to find the right fit for you.
Step 4: Put Your Past Experience to Work
Chances are, you’ve built up a lot of knowledge and skills over the years — so why not use that to your advantage? Your past work experience can be a great foundation for your new business.
Maybe your old company or industry could use consultants or freelancers, and you already know the ropes. Or maybe there’s one part of your previous job you really loved, and now you can turn that into a business of your own.
Don’t forget about your professional network, either. Reach out to former colleagues or contacts and ask what kinds of challenges they’re facing. Every great business solves a problem — and listening to the people you already know might help you uncover a great idea.
And once your business is up and running, keep those connections strong. Your network could become your first clients, biggest cheerleaders, or most helpful advisors.
Also, consider attending industry events, business meetups, or roundtables — they’re great for learning, getting inspired, and meeting people who’ve been where you’re headed.
Thinking About a Franchise? It Might Be a Smart Move
Starting your own business always involves some risk — especially since it can take a while to start turning a profit. That’s why many midlife entrepreneurs choose franchising. It gives you the chance to be your own boss while following a proven business model that’s already been successful.
Franchisors often offer support with everything from setting up operations to hiring, marketing, and even choosing a location. It’s like having a roadmap for running your business, which can make the whole process less overwhelming.
Of course, it comes with costs and ongoing fees. Big-name franchises like McDonald’s or Pizza Hut can require major investments — sometimes in the millions. But don’t let that scare you off. There are plenty of lower-cost options too, like mobile services, cleaning businesses, or food trucks, that can get started for much less. The key is doing your homework and exploring what’s out there.
One more thing to think about: franchises often come with rules and guidelines you’ll need to follow. If you’re someone who wants full creative control, that structure might feel limiting. But if you like the idea of having a solid playbook, it could be the perfect fit.
Is franchising right for you? Find out by exploring the key questions to ask.
Know Your Financing Options
Bank Loans
Most small businesses need a little (or a lot of) funding to get off the ground — whether it’s for equipment, inventory, marketing, or day-to-day operations. That’s why it’s important to understand your financing options, starting with one of the most common: bank loans.
This includes traditional business loans like SBA loans, which are partially guaranteed by the government and often come with lower interest rates and longer repayment terms — making them a popular choice for small business owners.
Bank loans and lines of credit can be great tools for funding your business, but getting approved does take some prep work. You’ll typically need:
- A good to excellent credit score
- Assets for a down payment
- A solid business plan that shows what you’re offering and why it makes sense
- Financial documents, including a forecast for the next few years
Once approved, you’ll make monthly payments with interest, just like with a mortgage or car loan. Don’t forget to shop around — different banks offer different interest rates and loan terms. A lower rate or longer term can make those monthly payments much more manageable.
If a bank loan sounds like the right path for you, give yourself time to gather everything you need and compare your options. A little upfront effort can save you money (and stress) down the road.
Thinking about an SBA loan? Check out our Complete Guide to SBA Loans.
Using Retirement Funds to Start Your Business: ROBS
If you have money saved in a retirement account like a 401(k) or traditional IRA, there’s a way to use those funds to start your business — without paying early withdrawal penalties or taxes. It’s called ROBS, short for Rollovers for Business Startups.
ROBS lets you roll over money from a tax-advantaged retirement account into a new retirement plan set up under your business. From there, your business can use those funds as startup capital. For midlife entrepreneurs who’ve built up their retirement savings, this can be a smart way to invest in your next chapter — without taking on debt or dipping into your personal savings. Also, ROBS isn’t just for 401(k)s. Most popular retirement plans qualify. Get the full list here.
ROBS is a great option if you want to skip the monthly payments, collateral and credit requirements that come with traditional loans — and get funded faster. While bank loans can take months (with no guarantee of approval), ROBS can get you the money you need in as little as three weeks.
There are a few things to keep in mind:
- You’ll generally need at least $50,000 in a qualifying retirement account to make ROBS worth it.
- The setup process is a bit complex, so it’s important to work with an experienced advisor.
- ROBS also requires annual reporting to stay compliant with IRS and Department of Labor rules.
Used the right way, ROBS can be a powerful way to fund your business — using money you’ve already saved for your future, to build your future. Here are the 5 things you need to know before using your 401(k) to fund a business.
Want a full breakdown on Rollovers for Business Startups (ROBS)? Learn how 401(k) business financing works — benefits, risks, and all.
Using Cash to Fund Your Business
If you have personal savings set aside, using cash to fund your business can be a straightforward, low-stress option. There’s no interest, no monthly payments, and no loan approval process — just you investing in yourself.
That said, it’s still smart to be cautious. Ask yourself: Can I use this money without putting my financial security at risk? Will I still have an emergency fund in place? It’s all about balance and using enough to get your business off the ground while keeping a cushion for the unexpected.
Using cash also gives you full control and ownership of your business from day one — no lenders, no partners, just you calling the shots.
Exploring Alternative Loans
If a traditional bank loan doesn’t feel like the right fit, there are other options to explore — like unsecured business loans. These types of loans don’t require you to put up collateral (like your home or other assets), which can make them appealing for first-time or midlife entrepreneurs.
Unsecured loans are typically based on your credit score, income, and sometimes the strength of your business plan. They can be faster to secure than traditional loans, but they often come with higher interest rates and shorter repayment terms.
If you’re considering this route, be sure to compare lenders and understand the terms clearly — especially interest rates and fees. When used wisely, unsecured loans can be a helpful way to access the capital you need without putting your personal assets on the line.
Learn more about unsecured loans with these 5+ top alternative startup funding options.
Ready to Take the Leap?
Becoming a midlife entrepreneur is more than possible — it’s a powerful way to take control of your next chapter and build something that’s truly yours. Whether you’re just starting to explore the idea or actively navigating a midlife career transition, the path forward starts with a clear plan.
We’ve walked through how to check in on your personal and financial readiness, choose a business that fits your interests, leverage your work experience, explore franchising, and understand a few of the most popular funding options for midlife entrepreneurs.
With the right resources and support, your business dream doesn’t have to wait. It’s never too late to start fresh, follow your passion, and create the life you really want.
Starting fresh in midlife? Get practical tips from our Midlife Entrepreneur’s Playbook.
Partner with Guidant to Launch — and Grow — Your Business with Ease
At Guidant Financial, we specialize in helping midlife entrepreneurs bring their dream businesses to life. From funding solutions like ROBS and SBA loans to guidance on choosing the right franchise, we’re here to support you every step of the way.
We’ve helped fund over 30,000 small businesses across the country — and our support doesn’t stop once your business is up and running. Guidant also offers a full suite of business services to help you manage and grow your business for the long haul, from ongoing ROBS administration to payroll, bookkeeping, and more.
Whether you’re just getting started or ready to take the next step, let’s talk about how we can help you fund, launch, and grow the business you’ve been dreaming about…
Call us today at 425-289-3200 for a free, no-pressure business consultation to get started — or pre-qualify in minutes for business financing now!
“When Falling Sky Brewing presented itself as a great opportunity for me, I needed the capital. Traditional lenders weren’t going to do it. I took a chance on myself that I could grow my business and my 401(k)… And I thought, ‘You know what? I could do this without overhanging debt.‘”
— Stephen Such, Falling Sky Brewing
Read the stories of REAL small business owners who work with Guidant.
