When you exit your current business, you’ll have choices about what to do next. It may be too early for you to think about this because you’re knee deep in your current business but think about it for a minute.
When you’re done with this business, you may choose to do nothing for a while. Or you could travel. You might volunteer for a favorite cause or spend more time with your spouse, partner, friends, or grandkids. With more free time, you might devote yourself to your hobbies. All these possibilities are open to you.
You might also decide to start a new business. I did. Here’s what I learned that might help you as you think about taking this route.
Opportunity for a Fresh Start
On the plus side, starting a new business is an opportunity for a fresh start. It’s a chance to take the lessons you learned in your old business and apply them to a new venture. You’re not starting from scratch as a first-time business owner and hopefully you can avoid some of the mistakes you made in the old business.
It’s exciting to think about the latest problems your new potential customers face and how you can help them overcome their challenges. In my case, I’m trying a new business model free from the constraints my previous business required. I’m doing this business by myself without the complications of staff or teammates. It’s very freeing.
You might find the new business will test you in new ways. You might be forced to learn new ways to market your business. You might also need to develop different tools and systems to serve your new clients. If you enjoy learning new things as I do, this can be a wonderful benefit.
Selling your previous business may give you a financial buffer or capital to start something new. This can allow you to invest the time and energy to grow a new business without the pressure of needing to make payroll every month. Of course, there is a limit to how long you can operate a business with no or little ROI so the clock is ticking.
It’s fun to try to build something new. I enjoy business in general and most days I look forward to creating a new enterprise. You could do the same thing. You could apply the knowledge, experience, and lessons from your previous business to avoid past mistakes and optimize your new venture.
The Challenges
On the downside, starting a new business after exiting a previous business has challenges. Here are three.
Burnout
First, as you know, running a business can be exhausting, and jumping into a new venture could burn you out, especially if you start something new without giving yourself time to recover from the strains of selling your previous business. I find some days I have less energy to push the rock up the hill so be aware.
Whether you want to admit it to yourself or not, you may have less physical energy now that you’re 60+ compared to when you were 40. Even if you have good health in general, eat a healthy diet, and exercise most days, with age comes less energy. Of course, you can also find ways to work smarter and compensate. For example, I schedule my hard work for the mornings and leave easier administrative tasks for the afternoons. I’ve also simplified my business to use technology smarter and my time more efficiently.
Time Is Not Your Friend
Second, running a business at any age requires significant time and some days you may feel the tug of leisurely activities. When the weather is nice and your retired friends ask you to do something with them, it’s hard to say, “No thanks, I have to work.” In your previous business, most of your friends were also working and they understood not to ask you to go off and play except on the occasional weekend. When you start a second business, the temptation may be more constant.
You can overcome this by disciplined adherence to boundaries. This is something you did in your previous business, but the siren song of “come play with us” is more constant and sometimes harder to ignore. Be prepared for it.
Motivation
The third challenge of starting a business after exiting a previous one is motivation. When you started your previous business, the reason for the business may have been simple and clear: make a living and save for the future by providing a valuable service to customers and clients. Now your motivation could be less clear and not as strong.
I enjoy the challenge of running a business, learning new things, and am curious about a variety of subjects and topics. Financial motivation is much less now than when I started my first business, but the motivation is still there for me. You may find it harder to push through the difficult times if your reason for running the business is not strong. Make sure you ask yourself two questions and be honest:
- “Why do I want to start a business?” and
- “Why is this important to me?”
Listen carefully to what your gut tells you. Maybe share your thoughts with a trusted friend, partner, or spouse. Listen to what they say. Starting a business is not easy and unless you’re 100% committed, you’re 0% committed.
Conclusion
If you’re thinking about starting a new business when you exit your current business, make sure you consider the strengths you bring to the new business, the benefits you’ll receive and the challenges you’ll confront. Check that your motivation is strong enough to carry you along.
What About You?
Are you curious about starting a new business when you exit your current one? Do you have a new business idea that you want to pursue and see what you can make of it? What do you see as the pros and cons of starting a new business after you exit a current one?
