Retirement is the perfect time to relax, vacation with loved ones, and pursue neglected hobbies. But not all seniors want to kick back and enjoy their twilight years in peace and quiet. Some retirees find it’s the perfect opportunity to start businesses. A lifetime worth of work experience, paired with great business connections, makes older professionals uniquely suited to entrepreneurship. Before launching a startup, it’s important to evaluate the various factors that can impact your success as well as your financial stability in the years to come.
Financial factors are an essential consideration for entrepreneurs of any age. But they’re especially important for retired individuals. For many retirees, the ideal business is one with low startup costs that can be run from home, such as a transportation company, a consulting business, or even an event planning service. You can get your business started without putting your retirement savings at risk. The lower investment and reduced risk help protect you financially if the business doesn’t grow as quickly as you hope.
While seniors may be able to risk some portion of their savings to launch a business, older entrepreneurs should take care not to use their Registered Retirement Savings Plan savings or — worse — their homes to fund new ventures. If the business doesn’t work out, you stand to lose your financial security. A younger entrepreneur has the time to recoup lost income and build up retirement if a business idea fails, but as a retiree, you don’t have a steady paycheque or the time to rebuild lost savings. You should also make sure you have medical insurance to cover potential health situations as you age before going out on your own.
Qualifications in the Industry
Of course, money isn’t the only important consideration when launching a business in your golden years. You also need to look at your ability to pursue a particular startup field. To put it another way, simply having interest in a given industry doesn’t necessarily translate to finding fiscal success in it. For example, the fact that you love jewelry may not qualify you to make your own earrings to sell online.
Another aspect that benefits you is management experience. If you already have experience running a business or handling the administrative part of keeping a company going, you may be more prepared to start your own business than someone with no managerial experience. Before investing your resources into a startup, make sure you have both the desire and expertise to achieve your goals.
One of the many advantages of launching a startup later in life is that you can take advantage of your work experience and contacts. After years of employment, often in various jobs and industries, you may end up with an impressive network of connections, including former colleagues, business partners, friends, and even competitors. Before starting a new business venture, take some time to consider your network of connections, and determine any areas where you may have a leg-up on the competition. Not only can seniors utilize professional and personal connections as startup consultants and advisors, but they can also mine these resources to find potential clients and vendors.
Great Startup Businesses for Retirees
If you’re a retiree who’s ready to start up a new business, you’re not alone. Many people aim to start their own businesses. A struggling economy means that aspiring entrepreneurs of all ages should select their business ventures carefully. You want a business that can be profitable quickly and sustain you in your retirement years. Here are a few of the best startup businesses for individuals to launch later in life.
Professional consultants serve as advisors for businesses or other individuals in various industries. All the experience you gain over the course of your employment can put you in the perfect position to launch your own consulting businesses in retirement. Not only do seniors possess a great deal of expertise, but they also have a network of connections that can prove invaluable. Some of the most popular consulting industries among seniors include accounting, computer services, and business development. When deciding on your specialty, consider your previous work experiences and areas of expertise. If you worked in the accounting field for your entire career, you might offer financial consulting services, for example.
Are you a former schoolteacher looking for a lucrative startup idea? These days, many seniors are starting tutoring businesses to earn money after retirement. Not only can you launch a tutoring company with little to no startup costs, but as a former certified teacher, you can charge higher rates for your tutoring services. Tutors can work with all ages, from kids to college students to adults. You can specialize in a particular subject if you have experience in that area. Some tutors focus on test prep. Others offer ESL tutoring services. Consider your own teaching experience and qualifications when choosing a tutoring specialty.
Even if you’re not a former teacher, you may have skills that come in useful for tutoring. College students may need tutors in particular subject areas. If you have professional experience in that field, you may be able to tutor successfully. As an added bonus, you could run the business easily from the comfort of your own home or via the internet. Seniors can pad their retirement savings while sharing their hard-earned knowledge with future generations.
These days, people are living longer than ever before, and many of them require assistance from professional caregivers. As a healthy and active senior, you may want to consider launching an elder care business. Not only are older individuals more likely to understand the needs and desires of other seniors, they often have prior experience caring for their own children or even adult parents. And because senior care services are typically performed in the client’s own home, you don’t have to worry about purchasing office space or turning your own house into a work space.
Making the Most of Your Retirement Years
Despite popular perception, the truth is that entrepreneurs can achieve success at any age, provided they have a strong entrepreneurial spirit, industry expertise, and the required financial resources. Do your research, and consider all the positives and negatives before deciding if forming a late-in-life business venture is the right choice for you. The QuickBooks Self-Employed app helps freelancers, contractors, and sole proprietors track and manage business on the go. Download the app.