The idea of starting a business post-retirement might sound a little crazy, but plenty of retirees are doing it, citing reasons such as more independence, passion exploration and extra income as the driving force behind their dive into entrepreneurship.
“Regardless of their motivation for starting a venture, many boomers are finding entrepreneurship to be a fulfilling encore career,” a Gallup poll reported, and the 83 percent who’ve done it say it keeps their mind engaged and supplements their golden years. If you’re feeling inspired, or perhaps looking for some motivation, the following tips and advice are the deep breath you need.
Find Your Calling
You can start a business doing just about anything, which is what makes the world of entrepreneurship so exciting. However, you want to make sure the venture you choose is something you are good at and passionate about. Look to your past career timeline to find a branch to expand. Maybe you were really good at marketing or consulting. Perhaps you could turn your woodworking or painting hobby into a business.
The key is to ensure there is a market for it, in addition to making use of your connections. Throughout your lifetime you’ve met some great people, so use their skills, expertise and recommendations to your advantage. Accept any and all help you can get, but don’t sweat the pitfalls. As Marci Alboher, vice president of Encore.org pointed out to U.S. News, it’s about the entrepreneurial journey.
“Understand that this whole journey to an encore career is not going to be a linear thing,” Alboher said. “Let yourself take some rides and try stuff.”
Dealing with Financial Woes
You saved and put away tirelessly to prepare for retirement, and now that it’s here, what’s next? It is imperative that your retirement savings and Social Security benefits (if you are currently eligible) can support your business goals. Crunch some numbers and pinpoint how much you generally spend each month, and what areas you can cut back on. You might have a fairly large nest egg built up, but when you combine the expenses of daily living and a business, you’re chipping away pretty steadily. Look for ways you can save such as buying in bulk at the grocery store or using public transportation so that you can free up money for business expenses. Meet with a financial planner to put a budget and financial plan in place.
The good news is that there are other options you can explore to finance your business and give yourself some much-needed breathing room. However, understand that starting a business doesn’t have to break the bank. There have been home-based businesses started for $2,000 or less. If you don’t have the funds, consider a loan to help get you on your feet.
Melt the Stress Away
Starting and running a business is a big undertaking, which is why mental health and stress management can’t be emphasized enough. As a business owner, you’ll likely find that it is hard to separate work and home, so find ways to purge your brain. Write everything down (including multiple solutions), or find an activity that relaxes you such as yoga, gardening, reading, or drawing. If your hobby is now your business, find another hobby you can turn to when you need a quick escape. Take breaks, and take them often.
If you find that this new venture is overwhelming, take a step back. Being in tune with your mind and body, and what it can and can’t handle, is important. The beauty of entrepreneurship is that you get to decide how much time you want to dedicate, making an encore career that much more golden.
So you’ve retired, but why not consider an encore career? Your newfound freedom is yours do with as you please, so if entrepreneurship is calling your name, answer. The golden years are here and you’re in charge.