Businesses To Start In Retirement – You want to start a business in retirement, but you’re not sure what type of business makes sense for you.
There are so many different types of businesses you can start these days. Where do you even begin?
Businesses To Start In Retirement
There’s one key question you need to ask yourself when deciding what type of business to run, and if you don’t, you’ll end up wasting time and money.
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To help you get more clarity on this, I sought out a retirement coach who specializes in helping professionals and executives make retirement transitions with the life side of retirement planning. His name is Kevin Lyles of Winning Retirement Coach; he is also the director of education for the Rock Retirement Club.
The type of business you choose to run must align with the larger vision of how you now want to spend your time.
I asked him, “If a client were to tell you they’re thinking about starting a business in retirement, what’s the first question you’d ask them?”
“What do they want to get out of the business?” Lyles replied. “That will lead to how I can advise them because there are many possible answers.”
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Before we get into some of the answers Lyles shared with me, let’s dive into why this question is important.
Up until this stage of your life, the job and career part has been mostly out of necessity. It has taken up a lot of your time over the years because there are these bills and taxes that we all have to pay.
When you enter this next phase, the job and career part plays a completely different role. You now have more free time, and you are not as dependent on it as your main source of income each month.
This means that the type of business you choose to run must align with the larger vision of how you now want to spend your time.
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That vision completely changes your thinking about what type of business you’re starting and why that question becomes so much more important to get clear on.
Previously, work and career dictated how you spent your time, now you have more control over it. So let’s get clear on what you want to get out of your business to ensure it aligns with your vision.
Lyles shared five common answers to “what do you want to get out of your business?” with me. Let’s dive deeper into each of them:
1. I need the income. If you are retired and need to replace your income to continue living, you may consider continuing to work or looking for another job.
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Let’s be real. Starting a business isn’t easy, and it’s not going to be an instant overnight success. It’s going to take time to start producing revenue, if it ever does.
Even if you are within a few years of retirement and think you need to replace your income, now may be a good time to start. That way, you can build your business without the pressure of immediate success.
2. Extra spending. Your financial retirement plan can be rock solid and your financial needs covered with a pension, 401(k) and/or savings.
Every year you want to take you and the whole family on holiday. Or there is a charity you are passionate about and want to donate to. Maybe it’s a lavish purchase you want to make for yourself or a loved one.
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3. Build a legacy for your children. It can mean many things. It could mean building a business to pass down to your children. Possibly it builds more wealth to be handed down to future generations.
Or the legacy may be to lead by example and show your family that anything is possible at any age.
4. Solve problems for others. It is common for people to start a business around something they are good at and where they can help others.
“It was something I enjoyed doing,” Lyles said. “During my legal career I mostly worked for corporate clients, but I really enjoyed helping them with their problems. So this way (through coaching) I can do it on a much more personal level to really help people through their retirement.”
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5. Purpose and meaning. Since work has taken up so much of our time during our lives, there will now be the great void in time.
“It’s a problem many retirees face after working,” Lyles said. “If they have worked ten to twelve hour days for thirty to forty years, now they wake up and don’t know what to do with themselves. Having a business can really fill that void and give them a purpose and a reason to get up in the morning.”
Once you know what you want to get out of your business, you can now focus on the details of the structure and capabilities that support your vision.
Mike Lieberman is the founder of Retirement Redefinition. He created the site to help people define their retirement and start an online business to match it. Read more Pensioners have experience to draw on and wisdom to share. Starting a business in retirement allows you to generate a side income with flexible hours and business control that works for you.
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The average retirement age in the United States is about 63 for women and 65 for men, according to Boston College’s Center for Retirement Research.
But a growing number of Americans continue to work well past the average retirement age. U.S. The Bureau of Labor Statistics projects that the number of workers between the ages of 65 and 74 will grow by 4.5% each year between 2014 and 2024, compared with annual growth of less than 1% in all age groups younger than 65.
The nonprofit RAND Corporation found that about 40% of workers over the age of 65 had previously retired but decided to re-enter the workforce.
If you want to continue working into retirement, but you’ve had enough of working for someone else, try starting a business. We’ve put together several unique retirement business ideas and outlined how much they might cost to start and what level of involvement you might need to sustain your business.
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Emerging entrepreneurial statistics show that the landscape is changing. A good number of Americans between the ages of 55 and 64 (13%) and between the ages of 65 and 74 (6%) started new businesses in 2019, according to the Global Entrepreneurship Monitor.
They did so for different reasons. Among those aged between 55 and 64, most (64%) formed companies to make a difference in the world. Among those aged between 65 and 74, most (55%) did it to build wealth. Many Americans of every age group also formed businesses to make a living because jobs were scarce or to continue a family tradition.
Let’s explore some of the best business ideas for retirement, whether you want to work from home or get out into your community.
In many cases, all you need is a good website and a lot of passion to start an online business from home. Whether you want to sell handmade goods or consign other people’s goods, there are plenty of satisfying and potentially lucrative business ideas for retirees.
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Dropshipping is an online business model – usually run as a sole proprietorship – that involves selling products to customers online without actually holding the products. You are responsible for creating a website, choosing products to sell, promoting your products and choosing prices. When a customer orders from your online store, you send the order to a dropshipping supplier who prepares the order and ships it to your customers.
You can find dropshipping suppliers through online platforms like Oberlo. The key in dropshipping is to find products that are in high demand or may be in the future, and to choose sustainable profit margins. If you’ve always wanted to run an online store but don’t want to handle the fulfillment logistics, you may want to explore dropshipping further.
Personal email newsletters have exploded in popularity in recent years. For example, Substack – a startup that lets you build, distribute and monetize newsletters – has doubled its readership and total number of newsletters since the start of the COVID-19 pandemic.
The concept is pretty simple: you pick a topic you’re interested in and think others might like too – maybe it’s bird watching or knitting – and you write a newsletter about it. Typically, people distribute their newsletters for free for a couple of months, build an audience, and switch to a subscription model with a monthly fee (usually anywhere from $5 to $25 or more). Platforms like Substack will claim a 10% cut of your income after you make money.
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Many small business owners and entrepreneurs rely on virtual assistants to keep costs down. Virtual assistants can schedule meetings or projects, make phone calls, enter data, create spreadsheets, or even help with writing or graphic design tasks—all from the comfort of their homes.
You can connect with people who need virtual assistants through freelancing platforms like Upwork, or you can form your own virtual assistant business and market yourself based on your specific skills.
For those who worked in industries with services that can be easily freelanced, such as graphic designers, programmers or
