If you’ve been considering starting your own small business but worried about your age in relation to the job, maybe you shouldn’t be. It turns out, the data supports older small business owners. On average, business owners who are 55 or older are less likely to go out of business. This data comes courtesy of the JP Morgan Chase Institute.
Small Business Owners are Better off Being 55+
The data in the JP Morgan report shows that a business owned by a 60-year-old has only an 8 percent chance of going under in the first year. Meanwhile, a 45-year-old owner runs a 10 percent risk, where a 30-year-old runs an 11 percent chance. When you stretch that out to three years, the math gets much closer, but the trend remains.
Why This is True
It’s no secret that, as a rule, older people are more conservative with their cash. That’s just the way that the human mind tends to progress as one ages. However, while conservative thinking can be a drawback in some field, in the world of small business management it tends to pay off more.
For instance, the study found that, on average, business owners aged 55 and up had more cash buffer days on average. That means that they could cover the businesses expenses for more days with no revenue coming in than younger business owners in the same period.
What This Means
If you’ve been worried about opening a business due to your age, you shouldn’t be. In fact, unless you’re in your thirties, your age is more likely to be a positive factor in your business. Financial firms know that older business owners are more stable and consistent and might even be more willing to offer you a small business loan.
Remember, it’s never too late to break into a new chapter in your life. Never let anyone tell you what you’re too old or too young to pursue!