Retirement is something many of us look forward to, but some of us will feel the loss of structure or fulfillment that we got from the workplace. If you have personal goals or passions, why not put them to use with a small business of your own?
Starting a business during retirement can offer a source of income, keep you socially and mentally engaged, and provide a new sense of purpose. It can also be a pathway to further explore your interests — perhaps interests you previously didn’t have time to pursue. The social and emotional benefits can be significant, since retirement can pose challenges for people predisposed 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 practical steps to help you launch a new small business venture on the right foot:
- 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.
- Understand 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.
- Build a business plan: A thorough plan helps clarify your goals, anticipate challenges, and communicate your vision to potential partners or lenders. There are many accessible templates as you consider what a profit plan looks like for your potential business.
- Assess startup costs: Starting a business can be costs, but avoid pulling large sums from your retirement savings for this use. Explore other funding options, including small business loans or lines of credit, to help protect your safety net.
- Enlist mentors: Don’t hesitate to seek out advice from other business leaders in your community, including people who are younger! They may be able to help you understand today’s business environment, or an industry that may be new to you, while forging valuable connections. Start by joining local service organ
- Be patient: A business isn’t built overnight. Often, a successful business takes effort and time to grow, so focus on long-term sustainability rather than rush decisions.
- 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!
- Tour Guides: 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.
Invest in Yourself During Retirement
Whether you want to stay busy, supplement your income, or simply do something you enjoy, launching a business could be a rewarding part of your next chapter; and at SouthEast Bank, we have the products and services to make it even easier for you. Explore our checking and financing options as well as business services like treasury management, and be connected with a personal business banker who can help you work through your needs whenever you’re ready to get started!
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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.
