According to Yahoo Finance, US workers usually retire around 64. However, in recent years, the country’s average retirement age has risen. The reasons for this rise vary, but they’re mostly due to changes in Social Security and other financial reasons.
Business News Daily revealed that for US workers, retirement no longer means leaving their professional lives behind and enjoying life. Right now, Americans expect to keep working even after retiring and bidding their careers goodbye.
However, for those looking to keep working after retirement, there’s a better alternative – starting a small business of their own. That being said, setting up a business from scratch is not easy, especially when you’re retired and in your late 50s or early 60s, but it need not be that difficult either. In this article, we’ll share with you a few things you need to ensure if you’re looking to set up a small business after retirement.
Assess Your Skills and Passions
One of the most vital steps in setting up a small business after retirement is to assess your skills and passions. Identify the areas where you excel at. It’ll be even better if it’s something you enjoy doing since you wouldn’t want to be stuck in a mundane job after retiring.
As you can leverage your existing skills and pursue your passions, you are more likely to enjoy running your small business. Whether you have expertise in consulting, woodworking, photography, gardening, or any other field, turning your skills and passions into a business venture can be incredibly rewarding.
Avoid investing time in learning a new skill and then using that to grow your business. As a retiree, you might not want to spend time learning a new skill. However, if you’re dedicated to doing so, more power to you.
Plan Your Finances
As a retiree starting a small business, you’re likely going to have three priorities – how to protect your assets, generate income, and increase your net worth. All of these are manageable as long as you know how to sort your finances.
Many retirees opt for the ‘Flex Strategy’ when it comes to juggling these priorities. AnnuityStraightTalk.com used this very approach to increase retiree income by 41.8 percent. Here, retirees can generate a lifelong flexible income stream. In your case, you’ll initially need the same approach before you can start bringing in profit through your business.
Plan your investments and other expenditures based on how much money you have. Ideally, this should be disposable income. However, if you’re confident that your business will kick off sooner or later, you can go ahead and spend outside of your disposable income as well.
The capital you want to invest at first is likely going to come from your retirement savings or annuity. However, you should still look for investors so that you don’t have to bear the financial burden all by yourself.
As long as you do all this, you’ll not only be able to protect your existing assets, but also generate income while increasing your net worth.
Start Small and Test the Waters
As a retiree, you have the luxury of time and flexibility, making it easier to start your small business on a smaller scale. Instead of diving headfirst into a full-fledged operation, test the waters first. Launch a pilot version of your business, offer your products or services to a select group of customers, and gather feedback. This approach allows you to make improvements and adjustments without risking significant financial investments.
Furthermore, starting small helps you maintain a healthy work-life balance during retirement. It allows you to gauge the viability of your business idea, identify potential challenges, and validate your assumptions before scaling up.
In today’s digital age, embracing technology is crucial for the success of any business, including small ventures. As a retiree, setting up a business and becoming tech-savvy might seem intimidating, but it’s a skill worth mastering. Technology not only simplifies various aspects of your business, but it also enables you to reach a broader audience and compete effectively in the market.
Invest in a user-friendly website to showcase your products or services, offer online ordering and payment options, and engage with customers through social media platforms. Additionally, consider using productivity and organizational tools to manage tasks efficiently, track expenses, and monitor progress.
Build a Support Network
Embarking on a new entrepreneurial journey after retirement can feel overwhelming at times. Building a support network can provide the much-needed encouragement, advice, and camaraderie to navigate through challenges and celebrate successes. Connect with other retirees who have ventured into entrepreneurship, join local business associations, or attend networking events to expand your contacts and learn from others’ experiences.
Moreover, don’t underestimate the power of family and friends as your emotional support system. Share your aspirations and progress with your loved ones, as they can provide valuable insights and help you stay focused on your goals.
According to a recent report by CNBC, one out of six US retirees in the US are currently thinking about returning to work. However, not many retirees are thinking about starting their own business, which might allow them to earn more money than a post-retirement job. Most are scared to even think about starting a business in those circumstances.
However, as you can tell from the discussion above, starting a small business need not be that difficult for retirees. As long as you can stick to the above-discussed steps, you can easily start your own small-scale business after retirement.