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Thinking About Starting a Small Business in Retirement?

Thinking About Starting a Small Business in Retirement?

Small Business
SouthEast Bank| April 5, 2024
Thinking About Starting a Small Business in Retirement?

Thinking About Starting a Small Business in Retirement?

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:

  1. 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.
  2. 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.
  3. 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?
  4. 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.
  5. 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:

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!

Note: Links to other websites or references to services or applications are provided as a convenience only. A link does not imply SouthEast Bank’s sponsorship or approval of any other site, service or application. SouthEast Bank does not control the content of these sites, services or applications.

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.