Retirement is something we all look forward to, but when we reach it, some of us feel a loss of momentum or fulfillment that we got from the workplace. If you have personal ambitions or goals, why not put them to use with a small enterprise of your own?
Starting a business during retirement can help you earn a bit of money and keep you engaged in your community, all while allowing you to explore your interests — perhaps interests you didn’t have time for while working your 9-5. The social and emotional benefits are also considerable. According to a recent story from Forbes, retirement can significantly strain people already disposed to mental health challenges, such as anxiety and depression.
Let’s explore some tips and trends you can use as you consider this option.
How To Start a Small Business After Retirement
Here are a few steps to help you be successful in a new small business venture:
- Research your business idea: Make sure it’s a viable product or service and that you have the requisite skills, experience, and resources to bring it to life.
- Know the regulations: Many state and local governments have specific rules for starting a business and what you need to do to get started. Review the regulations and understand how taxing applies to your business.
- Review the startup costs: Be realistic about how much it will costs to get started. In general, using retirement funds to start a business is a bad idea, since it removes a large amount of capital from your accounts. Are there other funds you can draw from, or will you need a business loan?
- Create the appropriate plans: In order to feel confident in your business, as well as to convince other potential investors in your idea, consider creating a profit plan. This will help you navigate toward success and around potential obstacles.
- Practice patience: A business isn’t built overnight. Often, a successful business takes effort and time to grow. Don’t round corners or rush decisions in order to get started. If you’ve taken the time to research and plan, you’re more likely to see success as you move forward and stick with it.
You can also look for a mentor — including younger mentors — who can help you learn the ropes, especially when it comes to the current business environment. You can also make good connections by joining local service organizations and networking.
What Is the Best Small Business to Start After Retirement?
Maybe you’re not sure what you should do. What is the best small business to start after retirement? Well, it depends on your individual goals and situation, as well as your interests and talents.
Many retirees find that consulting is one of the best ways to get started in a business after retirement. If you’re well-known in your field, you might be able to consult through your old employer or with others in the industry after retirement. You can often get paid more and work your own hours.
Other small business ideas that are good for retirees include:
- Tutoring: If you know a subject well, consider tutoring others. You can help high school and college students, which is a fulfilling path for many.
- Writing: If you have a passion for writing, now you have the free time to pursue it! Start a blog, contribute to your local paper, or consider becoming a freelancer. You might even be able to use self-publishing platforms to get paid for what you write.
- Event planning: If you’re good at organizing events and you have some resourceful connections, you might be able to start a business helping others plan big events like parties, weddings, graduations, and conferences.
- Pet care: If you like animals, pet sitting is a great option. Dog walking or home visits can keep you healthy with exercise and stimulation, while furry loved ones get company and care while their humans are at work. Or, even easier, have the animals brought to you for overnight or weekend boarding!
- Tours: When you know your local areas well, you can give tours. Share your take on the food or wine scene, or theme your historical tours with a fun twist. Airbnb Experiences can give you a way to reach visitors with your unique options.
Final Considerations: Quality of Life
Retirement doesn’t mean holding back from pursuing your interests or putting your skills to good use. If you’re considering becoming a small business owner during retirement, quality of life is just one of the many potential benefits. Reflect on your experience and interests, and consider launching a business that can make your retirement years that much sweeter!
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Information contained in this blog is for educational and informational purposes only. Nothing contained in this blog should be construed as legal or tax advice. An attorney or tax advisor should be consulted for advice on specific issues.
