10 Steps to Starting a Small Business After Retirement

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.

Having a small business after retirement is a great way to stay active, make money, and gain financial security.

 

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