Dan Morel tossed out an interesting thesis that single people shouldn’t do startups, mostly because it’s difficult to have a relationship, fun or hobbies because you’re so engrossed in running the business.
I don’t agree with Dan because when you’re single, you have things that couples (particularly those with children) don’t have: time, energy, spontaneity and nothing to lose given many younger people don’t have mortgages hanging over their heads.
But Dan’s post did get me thinking about whether older people can do startups, or whether it’s a young person’s game.
Does someone who is more than 50-years-old, for example, have the energy, creativity and drive to devote themselves to a startup? At a time when they might want to be gearing down or, at least, not looking to work long hours, does a start-up make sense personally or professionally?
For many people within this demographic, the above might ring true but I also think there are many older people who are totally startup-friendly. Here are a few reasons:
1. They have a wealth of experience from working with a wide variety of people and companies.
2. They have pretty extensive networks that can be leveraged to open doors for a startup from a marketing and sales perspective.
3. If they have children, they’re probably older so the domestic demands have declined other than the need to spend quality time with their offspring.
4. They may be more financially stable after having had a few decade to invest, buy a house and establish a solid retirement fund.
5. No one really retires so older entrepreneurs are probably just as motivated to succeed financially as a younger entrepreneur.
6. There’s no job security these days so there is less risk in joining a startup than there might have been.
In an ideal world, startups employ people who are young and single, married with children, and more seasoned because they bring different skills sets, attitudes and energy to the mix.
Startups aren’t a young vs. older person proposition, they’re about good ideas and execution. There’s no age limit (young or old) to make that happen.
From: “People Over 35 Have Recently Launched 80% Of Startups”
“Part of the reason that companies started by older workers don’t get much recognition is because they don’t generally produce hot Web apps or other easily understood products. Instead, they tend to involve more complex technologies like biotech, energy, or IT hardware. They also tend to sell products and services to other businesses, which consumers rarely see but which do most of the heavy lifting in powering innovation and economic growth.”
http://www.businessinsider.com/people-over-35-made-up-80-percent-of-entrepreneurship-activity-during-the-recession-2011-7
While I can see the article’s point, my take is this: what took ‘em so long? Most successful entrepreneurs have been doing it their whole lives. They do it because it’s who they are, not because they suddenly meet criteria (like getting laid off).
If you’re 55+ with 30 years of corporate work experience I’m not sure you’ve got the requisite DNA. It’s not so much about work ethic or leveraging networks, it’s about the je ne sais quoi that E-type personalities just seem to have.
How many startups have hired older, experienced, corporate sector people, only to have both sides realize they aren’t a great fit?
Yes, older people can do startups. I know many people in their 60′s who run amazing startups. If you have the guts, age does not matter.
Mark: An interesting article on startups. Let me add to your thesis that age is not a key criteria. (Full disclosure: I am handling the communications for the company in question). Innovative Composites International is a company manufacturing hi-tech composite panels that are used primarily used in the affordable housing (think haiti and other third world countries) and transportation/container sectors. The company was started by a group of 50-plus ex-Magna executives and engineers, who had worked in the plastics technology side of that business. Believing that the product they had developed had applications outside of the automotive sector they went from the “corner office” to the basement office when they founded ICI just a little over 3 years ago. The company is now publicly traded (IC-TSX-V) and securing contracts in its two targetted sectors, including a recent $68-million contract with a global construction company to build houses in Haiti.
Not to say it has been easy – but experience,contacts, business savvy and endurance have paid off with the company poised to open a second manufacturing facility.
clive hobson
Clearly age has been no impediment to their
Speaking from experience, one significant down side to taking the startup plunge when you’re no longer young and unencumbered is that your personal burn rate tends to be a lot higher, which finds a way to bleed into any and all funding discussions. There’s a kind of baked-in expectation among tech funders, particularly north of the border, that entrepreneurs in the companies that they consider funding will be willing to “take one for the team” and live with monastic frugality as they build out their vision. One might think that such funders would place value on the experience that comes with a more seasoned entrepreneur, especially as the funders can be quick to cite their own experience as having such value, but my sense is that, in the absence of an existing long-term membership in the funders’ networks, there is an impression that if the entrepreneur is starting so late and didn’t make his/her play earlier, s/he may be too expensive a bet.
Personally i think it makes no difference of the age someone does a start up, its all down to how much drive that individual has to accomplish there tasks. obviously it is better to start sooner rather than later with anything were a skill needs to be developed. However that doesn’t mean its to late to start learning. Again it is up to the individual to be motivated.
Boy, have I got feedback for you!
I’m close to 50. In 2008 I decided I wanted to build a start-up. I enjoy coding in my spare time and built a little app for my family. I demo’d it at a DemoCamp and received tremendous encouragement. But I knew nothing about starting my own company. Nothing. I have a very successful job and career at a large corporation and I like to think of myself as driven, innovative and entrepreneurial. But still, I knew nothing about starting a company.
So I started TeamCamp. Our idea was to bring like-minded individuals together for the purpose of taking smart ideas and turning them into start-ups. I’ve had tremendous response. There are tons of people out there that felt the same asI did, of all ages. They’re mostly “geeks” who get the new technology and tools out there and can’t sleep at night in anticipation of the things to come.
The reality is that their current jobs are dull. Big corporations move slowly and there’s little room for all this fancy technology (at least not right this instant). So, the idea of a start-up is exciting.
So now let me share with you some of the realities and lfe lessons I’ve garnered from my goal of creating a start-up over the last two and a half years:
1. They have a wealth of experience from working with a wide variety of people and companies.
- True. But it might not be useful to them in the start-up. Over the last two years I’ve built an extensive network in the Ottawa start-up community. It’s been a blast and I’ve loved every minute of it and I have met many new friends. That being said, when I talk about what I’ve done back at my company, I largely get blank stares. The start-up community and the company you’re currently work for are likely from two different worlds: Venus and Mars. Believe me.
2. They have pretty extensive networks that can be leveraged to open doors for a startup from a marketing and sales perspective.
- Again, true. But now you’re in a conflict of interest. You can’t start a company that has anything remotely close to do with your existing company unless you quit first. So your networks are limited.
3. If they have children, they’re probably older so the domestic demands have declined other than the need to spend quality time with their offspring.
- You must have young kids right? Here’s a harsh reality for you: a parent’s role increases in importance as the child grows older, well into their 20s and probably longer (my eldest is 23). Kids problems get more complicated and they need more of you – maybe not more time – but they need you to be there for them. When your not, kids get mixed up in all kinds of shit. But don’t get discouraged – it’s a blessing. I thank God every day for the fact that I can help my children to be successful. That’s really why we become parents, isn’t it?
- You also forgetting about your significant other. When the kids leave the nest, and you do start to get some free time back, that’s when you and you’re significant other can finally fulfill those dreams that you’ve been putting off for so long. Don’t waste that opportunity!
- No, the kids getting older is not the time to start a company, unless you’re prepared to sacrifice some of these things.
4. They may be more financially stable after having had a few decide to invest, buy a house and establish a solid retirement fund.
- A start-up does not bring you financial stability. Moreover, when you get older your financial responsibilities grow. I’ve met people that suggested that I disregard all that and take the risk; “follow your passion” they say. What’s the point of following your passion if it makes your loved ones feel like crap because you’ve risked your financial stability?
- As you get older, your salary increases, you financial responsibility increases, and you start thinking about retirement. It’s not easy to give up those things. But there are hidden pay offs that I’ll talk about later.
- Lastly, you’ll be thinking about what you earn now, and comparing that to the $2/hour you’ll make on your start-up the first 3 years. It’s not easy giving that up (nor should you).
5. No one really retires so older entrepreneurs are probably just as motivated to succeed financially as a younger entrepreneur.
- I agree with one point here. When I start thinking about retirement in terms of no longer working I get depressed. Retirement, to me, means that I’m going to do the things that I love. If that’s Rails development – awesome! If it’s travel – amazing! But to get into a start-up that will mean 16 hours days for the next 5-10 years, I’m not so sure. That’s a balance I’m still looking for. The Micropreneur Academy has some pretty good ideas on that topic.
6. There’s no job security these days so there is less risk in joining a startup than there might have been.
- “A bird in hand is worth two in the bush”. Sure, there is less job stability then in the ‘old’ days, but if you have a good job, and you can make it better, why would you leave it? Having a backup plan is a good idea.
Now let me tell you a little about the awesome and fastatic things that have happened to me in the last two and a half years of attempting to build a start-up:
- I’ve learned of all sorts of approaches that I’ve brought back to my job. For example, I’ve taken the principles behind Test Driven Development (TDD) and applied them to all sorts of projects at work (even non-IT projects). I’ve pressed our IT department to try new things. I push our Marketing department to better understand our market. I push for more focus on customer service. I have a far better understanding of entrepreneurship that I bring to my job every day.
- At first I kept my work with TeamCamp a secret afraid that I would be given the ‘boot’. When I started to get more comfortable with it I started letting key individuals at my company know what I was up to, i.e. my boss, his peers, some of my co-workers etc. . It has gotten me more challenging assignments (I was put on a team to work on my company’s 2020 vision), and I dare say a promotion (I now have a bigger team and a better salary).
- Over the past 2 years there’s been an undeniable spring in my step. I’m having a blast. Sure, there are emotional ups and downs, frustrations about “never having enough time”. But it hasn’t been dull. I’m learned more about myself and I’ve realized how much I love my family and value my friends.
- My family and my wife are proud of me (they also let me know when I’ve gone to far). I’ve set an example for my kids and when they see what we can do at “our age” (my wife completed her Queens Executive MBA last year) they’re more driven to succeed themselves.
- Most importantly – and I don’t say this lightly – I’ve helped others succeed. This was the biggest surprise to me. When I started TeamCamp it was primarily for myself; I wanted help building my start-up. What ended up happening was that I helped others! Not necessarily with starting the next Facebook, but I know of a least two TeamCampers that are now in Silicon Valley and one that works for Google, and many others in successful start-ups. TeamCamp let them know that anything was possible and encouraged them to follow their dreams.
What I’d like to say is this: If you’re older, don’t let the naysayers hold you down. They don’t know what the hell they’re talking about. As people grow older they get more experienced. True, maybe not as sharp as some of the younger folks, and I regularly forget the names of things, but we do see the “big picture” more than younger people and our intuition is better (read “The Secret Life of the Grown-up Brain” to see what I’m talking about).
But if you’re thinking about a start-up, consider some of the things I’ve pointed out. But what the heck, if you really want a start-up you’re probably not going to listen to me or anyone else – I didn’t!
But if you’re like me, why don’t you consider helping others with their start-ups? I’m not talking about the “I’ll give you ten grand if you give me 10% of your company” kind of help, I’m talking about heart felt, giving of your time, asking for nothing in return.
I’ve met some incredible, young people since I started TeamCamp; full of fire and spunk, raring to go. And smart as all hell. These young men and young women can code circles around me. People who say Gen-Y’ers are lazy need a slap. But they do need encouragement, and plenty of it. Attend DemoCamps, Start-up Weekends, go to start-up drinks – see what these people can do. Encourage them and help them if you can. If you have networking contacts, if your company might support them, do it! Maybe you’re an accountant, maybe you’re an experienced marketer, maybe you’re already a serial entrepreneur. You can help. But do it for “purpose” and not for money.
Mark, thank you as always for your insightful posts. But you’re off on this one. I hope you get a chance to read this and comment.
- Chris
Its pretty simple. The person whose idea comes to fruition is generally the person who is popular, like high school. VC’s and their minions throw idea parties, and people who can muster support from just about anyone are the same people who did that successfully in high school. Its not their intelligence…but that they have that charm effect on people. They naturally fit into leadership roles, and have a flexible mind to incorporate other people’s good ideas and not doggedly stick to their own. They tend to be young, well dressed, and the type to be the first to jump into the limelight, and lack any social phobia. Older people’s minds are usually not flexible minds, they are stuck in looped patterns.