50 Is the New 65: Older Americans Are Getting Booted from Their Jobs -- and Denied New Opportunities

[haele]

71. Unfortunately, not everyone is suited to being in business themselves.

There are quite a few people who psychologically cannot handle working for themselves, they need to have hierarchy and structure in place for them to operate within - even though they may seem to be competitive, they still need to be part of a herd, and they are not (no matter how much they want to say they are) "Alpha Dogs". Require they start a business by themselves, no matter how skilled they are in any particular field, or how good they are about "getting the job done", they don't have the personal management and financial skills to be able to be a boss as well as a worker-bee.

Not only that, too many people realize they have to strike out on their own too late. They've been unemployed too long, run through their severance or savings while they were out looking for the new job, and have little to nothing left when they decide to start their own business.
The problem is that unless they already have the infrastructure set up (as in, they already had a side business or hobby where they have the tools, set-up, and an idea of the market on hand), they're just not going to make it, even if they manage to get something out there initially as a start.
The investment needed to start one's own business, no matter how small the requirements to run the business are, is is massive; you need to understand that you have to have the operating costs, the price to access the market for the business you are going into and your expected "profit" for that business already in hand before you start.
A "consultant" job in a field where people know you already - one that only requires a cell phone, a car, a home printer and laptop set-up will still require at least six month's expected salary set aside to be able to get off the ground before it even begins to see a little net revenue. If you expect to be making $2K a month, you need to have $12K in the bank.
Without the necessary tools (equipment, raw materials and property) for your business, advertising/marketing and a significant nest-egg to begin with, you will be bankrupt within nine months.

The rent-mate who started her own business was very lucky when she got laid off in the 1990's - she had been selling jewelry on the side already, had the tools and equipment and I let her have access to the workbench/storage area in my over-large garage (thank you previous owners!). She had gotten a small inheritance that paid for her start-up costs and stock, she had a part-time job (evening shift at a 24 hr. gas station/convenience store), and she didn't have to actually pay rent when she was staying with me; just her half of the utilities and trade (cleaning, pet-sitting, use of her car when mine broke down). She lived with me for two and a half years while she got her business up and running enough to start making a profit; there for a while, it looked as if she would fail miserably.
She's still going, but her business is not doing as well as it used to, and she's back to working shift - at least she has her own house free and clear, so all she needs to worry about is taxes and insurance. She'll be able to start to collect her Social Security in two years - but she'll still probably be working shift.

Anyway, if something happened to my job right now, I'll need at least an additional $75K if I wanted to start my own consulting business and be able to get it going well enough to survive off that income and my husband's disability until I start collecting my military pension in 5 years (retired reservist) and then Social Security in 14.
Otherwise, I'd be living off my savings (which took a hit during the bust) and sending out resumes, standing in line at the Kelly's or Apple One executive help hire waiting on whatever temp or day labor job I could get, like everyone else. Or working the midnight shift at the AM/PM for the next five years, like my former rent-mate is doing.

This is no country for old men or women who don't have sufficient wealth to "just retire" on. Not if you don't have a job, or don't have the strength and stamina of Jack LaLane when you're in your 50's.

Haele