Retirement Entrepreneurs Blog

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Author: Ingvar - Retiree In Training  

Working after retirement

5 Tips for Starting a Business After Retirement

Many retirees get bored, or feel they still have energy left to do well in the business world. Oftentimes, they start a business, as they feel at there age that they will have an advantage on younger people in starting of a business. This is true, but also other considerations should be taken into account when a young person starts a business. This is because, they should not be taking as much risk since at an older age, you have a shorter time to recover.

What's Wanted
You have to decide what you want in a business. Is it a way to fund a hobby, but still make a little bit. For example, if you like photography, and want to have a business photographing weddings. Or are you looking to employ a son or daughter to help them out. Defining what is desired, just in your mind, or writing out on piece of paper will help avoid confusion. 

Businesses are a huge consumer of time. It is important to know how much time you want to spend on the business. Many retirees want to enjoy travel, or be able to visit people at the drop of the hat. This may be difficult while running a business. So expectations and ideas on how much time spent should be made before starting a business.

Start Soon
It is a good idea to get started as soon as possible. When starting a business, more time is needed to start it than most people realize. If you are getting into business in the field you worked in, this may be easier. But it would involve contacting old co-workers, and possibly even forming a business alliance with them. Incorporating, taxes, and business structure can take months to set up. Starting early can make sure it is done right, and you are ready to do business as soon as possible.

You need to decide if you are taking out a loan for the business, or using money you already have. It should of course be noted, when starting a business, only invest what you will not need. Do not use retirement funds or money that will be needed to pay your living expenses. Since a lot of business fail or becoming money pits, it is imperative that you have money to fund retirement even after starting the business.

How Long?
In retirement, you should define how long you want to have the business. Whether it be get it profitable and sell it, or start it and turn it over to a relative. It may be easy to run a business in your early 60's, but this may be difficult in your late 70's. It may even be a good idea to keep employees in mind, who may want to buy the business later on. This can be a natural way to profit while ensuring your idea continues.

Starting a business while in retirement is a little more risky than in younger years. But it can be very rewarding financially and it can be fun if done right. It is important to be less of a risk taker when retired, as it may be difficult to recover financially from a business failure. But with the expertise of a retired person, along with the patience, and intelligence, the chance to prosper is very high.

Kevin DeWulf writes about finance, business & finding the most affordable dental insurance quotes.

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