Starting a small business that you're passionate about can be a very rewarding way to spend these "golden years," as well as ensure a protected income stream.
Sometimes being on a fixed income is tough with all the expenses you have to deal with in life. Maybe you want to help out with things your grown children or grandchildren need, like college or down payments on home loans.
Let's take a look at 10 helpful steps to starting a small business after retirement.
Step #1: Explore a Passion
If you have a hobby you love, like baking cupcakes or knitting sweaters, that might be something you can turn into a mini-enterprise to net you some extra cash.
Step #2: Look at Your Time
Analyze how much time per week you want to devote to this undertaking. If you realize you only have 5-10 hours per week that's a big difference from 20-30. This time scale might influence the type of business you can realistically devote your time to doing.
Step #3: Enlist Help Where You Need To
If you have friends, family, or that guy at the coffee shop who you talk to every day, this is the time to ask for advice. Sharing ideas is going to allow you to brainstorm what kind of business might work out best for you.
Step #4: Try Not to Bite Off More Than You Can Chew
Don't go "whole hog" at once. Try to pace yourself when starting your small business to make sure it pans out correctly for you.
Step #5: Make it Fun
You are retired. Even with starting a small business make sure it's something you can have fun doing. Otherwise, you basically aren't retired anymore. And that's not fun.
Step #6: Craft a Detailed Business Plan
If you don't know how to map out one of these, it's easy to figure out how. There are books and online guides that can show you the templates to use.
Step #7: Test Out Your Business
Do a few test runs of your product or service with friends and family to make sure it's truly a viable option to run with.
Step #8: Cut Costs Where You Can
You want to make money, not spend it ... obviously.
Step #9: Network Like Crazy
The more you talk up your business with good old-fashioned word of mouth networking, the better off your little startup will be. Don't be afraid to open your mouth at your book club, rotary club or any other place where you know people who might like to hear about what you are up to during your retirement.
Step #10: Talk to a Financial Planner
Dedicate some time to sitting down with a great financial planner or advisor that can make sure you are on the right path money-wise to investing in your small business startup. This is probably the most valuable tip of all to look into. Good luck with your new retirement and your new business!
By Christian Cordoba
CERTIFIED FINANCIAL PLANNER™
Founder, California Retirement Advisors
Investment advisory services offered through Mutual Advisors, LLC DBA California Retirement Advisors, a SEC registered investment adviser. Securities offered through Mutual Securities, Inc., member FINRA/SIPC. Mutual Securities, Inc. and Mutual Advisors, LLC are affiliated companies. CA Insurance license #0B09076. This content is developed from sources believed to be providing accurate information and provided by California Retirement Advisors. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. California Retirement Advisors, nor any of its members, are tax accountants or legal attorneys and do not provide tax or legal advice. For tax or legal advice, you should consult your tax or legal professional.