Whether you are close to retirement or still years away, a retirement-age business is a good idea to plan for. We are living healthier and more active than ever. Even after 62, nobody wants to sit around.
Retirement is the free time we worked hard for, and project ideas are popping up; a new business can keep us engaged with the community and provide additional income.
Read also: Maximizing Your Retirement Savings: How to Use a 401k Calculator.
Experience matters. The age of the average tech startup entrepreneur is around 40, not 20. Starting a business after retirement means bringing the real-life experience to the fore.
We will look at 1) the benefits of a retirement-age business, 2) venture ideas to consider, and 3) financial ways to get your golden-age business off the ground.
Read also: The 7 Essential Steps to Creating a Successful Retirement Plan.
Stay Actively and Creatively Engaged
Creativity, activity, and community connections are the elements that keep us in good health.
Throughout our careers, we’ve had to reign in our creative impulses and focus on the tasks to ensure our families are supported, and our mortgages are paid. Along the way, little insights and business ideas have been percolating.
A retirement-age business is an excellent platform for expression – as effective as painting or outdoor adventure. And unlike those noble pursuits, self-expression through the company has the potential to create additional wealth for the family while creating jobs for others.
Community Contribution
Growing older means seeing much change. Sometimes change can leave gaps in services, and retirees are in a position to recognize this. Valuable businesses begin with invaluable insight, so retirees already have an advantage in identifying opportunities – to create further wealth for family or charities and community programs.
Choosing the Right Retirement Business
There should be a balance that, in the end, makes us feel compelled to follow through with implementation, progression, and growth. A retirement-age business should be stimulating enough that we willingly engage with it at some level daily.
That being said, the balance should exclude overwhelming stress. Meeting challenges can be gratifying, but being smothered by endless problems can cause us to give up on the project.
You may have a general idea about starting a business but are still looking for more concrete ideas to pursue. Whether you want to apply knowledge accrued, find work around a hobby, or even start a business to keep fit, consider these options.
Consulting Work – An easy way to put your knowledge to work; there is little inventory and no store to manage; working hours remain flexible.
Daily Dog Walking or Boarding Service – Already have some experience with pets; want to stay active; and have constant companionship? There is hardly a hotter trend than pet ownership, and care services are in high demand.
ECommerce Craft Sales – What a boon eCommerce has been for unique niches such as one-of-a-kind handiwork sales. Whether you are a hobbyist or want to help others sell their goods, starting a local eCommerce site is a great way to engage with other like-minded artists.
Startup Planning and Advice
Starting a business from scratch, especially in retirement, can seem daunting, but plenty of valuable resources are out there to get you moving. Mentors abound who have successfully taken these steps. Contacting your local Chamber of Commerce will put you in touch with an entire community of like-minded individuals eager to pass along what they’ve learned – and mistakes to avoid.
Financing Options
Starting a new business that is 1) modest in scale and 2) centered around your existing skillset and experience (like consulting) needn’t cost a lot to get off the ground. This is equally true for eCommerce-based ventures.
Some home-based businesses can be started with just a few thousand dollars and financed with a business credit card.
If startup costs are significantly higher, one temptation would be to dip into built-up savings and retirement funds so that you maintain financial control and avoid debt. However, unless you have begun saving years ahead for a specific venture, a financial consultant would stress extreme caution or likely advice against it.
Instead, there are several lending options that better suit your situation.
Small Business Administration (SBA) Loans are more favorable to new entrepreneurs than standard business loans because the U.S. SBA backs them. Financial institutions can be more flexible when considering which businesses to help.
SBA loans are ideal for purchasing a pre-existing business. If you want to take over a local business to bring in additional income without incurring high startup costs, purchasing a local company with established roots – like a laundromat or a car wash – is a stable venture.
SBA lenders can look at your credit history and the business history you wish to purchase. If both markers are in good shape, a lender will have an easy decision in front of them.
Reverse Mortgages are retirement-age mortgage loans available to homeowners 62 and older. It is a way for homeowners to access the existing equity on their home in the form of a loan that gets repaid after the house is sold.
These loans can be used in various ways, including mortgage refinancing, home improvements, and business investment. Eligible homeowners must have a certain percentage of equity built into their homes, and loan amounts depend on several factors, including where you live. You can use a reverse mortgage calculator as a tool to determine approximately what you might qualify for.
Read also: How to Start Investing With a 401(k) Plan.
Conclusion
These days, retirement is a new beginning, a chance to fulfill that long-dreamt business plan that will keep you active and engaged in the community. The best part is, after years of built-up experience, you are already more than qualified!
