NEW YORK (CNN/Money) -
More and more people over 50 these days are starting at home businesses. Some are worried about the prospect of having enough in retirement, but others simply want to remain active.
We heard from many of you about your interest in working as a senior after a recent 5 Tips on that topic. Today, we look at the best businesses to start up if you want to go into business for yourself from home after 50.
Keep in mind that there are plenty of opportunities out there. As the workforce ages, employers are looking for workers with experience who can handle projects on a piecemeal basis, and busy boomers with young families are eager to hire enterprising experts to take care of services they are too busy to handle themselves.
What do you need to know? Here are today's 5 Tips.
1. Hatch a plan.
There are many approaches to deciding on the right business for you. One involves capitalizing on your lifelong skills and going to work as a consultant. Another approach is doing something you love -- like photography or yoga -- but making a living at it.
Deciding what business to be in when you're starting a small at-home business is even more important than developing a complicated business plan.
Paul Edwards, author of "The Best Home Businesses for People 50+," says many boomers are following their passion, starting businesses as caterers, pet groomers and even artists. There are also mobile notaries, handymen, errand runners and cake decorators going into business all the time.
Edwards also points out that some of the most bustling business may be related to caring for the growing number of aging Americans who are living longer, like elder care and geriatric care managers.
2. Price yourself right.
Once you figure out what kind of business to start, you'll need to figure out what to charge for your products or services. Forget going the usual route of consulting industry sources like trade associations -- a far better and cheaper way is to scope out the Web sites of your competition. Lots of companies list pricing information online.
You may also want to survey people who are using a competitor's product or service. Edwards says most people will provide such information if they think you'll offer them a better deal.
3. Market yourself.
The good news if you're going the consulting route is you probably already have a hefty Rolodex. Reconnect with your old contacts, take them to lunch and network. If you're starting a home-based service business, you'll want to start with your own personal network first and eventually branch out from there.
A smart approach is to do a little direct marketing in your area. Hook up with community and social organizations where members would want your services.
Another strategy is getting the word out about what you do to busy younger boomers who are strapped for time and can't provide these services for themselves. If you can extend your profile locally, more people will know who you are and what you can do.
If you need help marketing yourself or refining any part of your plan, the Small Business Administration (SBA) can help. They're not just a place to go for money, they also operate a toll-free 1-800 "answer desk" where you can speak with workers who'll connect you with the information you need. The number is 1-800-827-5722. The SBA's Web site www.sba.gov also has lots of helpful information for would-be entrepreneurs.
On the site you'll find the Small Business Training Program, an online "campus" where you'll find classes like Building a Business, Analyzing Profitability and Identifying Your Target Market as well as other educational and information resources.
Another great place to get help is SCORE (Service Corps of Retired Executives), a nonprofit association that provides would-be entrepreneurs with free, face-to-face and e-mail business counseling.
Counseling and workshops are offered at 389 chapter offices nationwide. Services are provided by volunteers who are experienced entrepreneurs or corporate managers. For more information, check out www.score.org.
Also, be sure to check out the government's www.careeronestop.org "Business Center." The site has links aimed at helping blossoming entrepreneurs start, manage and grow their businesses.
4. Where to go for dough.
According to Edwards, most home businesses can be started for $5,000 or less and most people manage this sum alone or with help from friends and family. But if you need help, one place to turn for cash is the government.
The Small Business Administration guarantees loans made by commercial lenders to entrepreneurs. The SBA's Microloan Program provides short-term loans of up to $35,000 to small businesses for working capital, the purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment. The SBA says the average loan size under this program is around $11,000, but no loan is too small.
SBA loans aren't a sure thing though, they are selective. According to the agency, individuals applying for Microloans may be required to fulfill training or planning requirements before their loan application is considered. Lenders will generally require some type of collateral as well as the personal guarantee of the business owner.
Another place to turn for money are Small Business Investment Companies. According to "Small Business for Dummies," SBICs are privately owned, quasi-venture capital firms operating under the auspices of the SBA.
These companies provide money to startups at more favorable rates than offered by traditional lenders. For more information on SBA loans or SBICs contact the SBA at 1-800-827-5722 or go to www.sba.gov.
There's one more resource you may want to look into. If your business really takes off and you need a lot of dough to expand, you may want to look into angels. Angels are people (usually former entrepreneurs) with money available to lend or invest. Some are looking for investment opportunities and some just enjoy helping fledgling entrepreneurs. For more information, check out the Angel Capital Electronic Network online here.
5. Sidestep scam artists.
You've probably seen ads online, in your local paper or in your e-mail advertising work-at-home opportunities. The ads usually read something like this, "Be your own boss! Work from home! Earn $2,000 to $4,000 a week! Call Now!"
Once you do make contact, you may not know it, but you've been hooked into a scam. Typically, they say, all you have to do is send away for their "confidential" training material.
Here's where the scam comes in. The training material can cost as much as $500 or more. Once it arrives, you may be very disappointed, as it usually contains nothing more than useless marketing material.
The bottom line is beware of any business opportunity that requires a non-refundable cash payment. Remember, if it sounds too good to be true, it probably is.
Gerri Willis is a personal finance editor for CNN Business News. Willis also hosts CNNfn's Open House, weekdays from Noon to 12:30 p.m. (ET). E-mail comments to 5tips@cnn.com.
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