A Comprehensive Guide to Exploring Entrepreneurship in Retirement

By Indiana Lee

The good news is that you don’t have to stop working — even in retirement! Plenty of people find a side hustle in their later years and some can start fully-fledged businesses of their own.

Deciding to unretire can be particularly powerful if you feel that you have more to offer the world and want to kick boredom to the curb. You can lean on your years of experience and know how to create products and services that people love.

Retirement Entrepreneurship

Entrepreneurship can be a great way to reignite your passion for life and pursue goals that are meaningful to you. However, starting your own business in retirement can be confusing if you’re new to the idea of running a firm for yourself. Get started by identifying a gap in the market that you plan to fill. This does not mean you need a unique idea; you simply need to know why folks will want to pick your business over competitors.

Next, calculate your start-up costs. It’s easy to overlook small costs like cleaning fees and shipping materials when you’re excited about starting a business. Take some time to research your most cost-effective options and identify your biggest one-time costs. This will help you identify your break-even point and provide the basis for your business plan.

A robust business plan is extremely important if you want to generate extra capital via loans or investments. A business plan shows banks and potential investors that you have a strategy to turn a profit in the next few years. It also details your goals and helps you learn about any regulations that may influence your decision-making.

If you do decide to proceed with entrepreneurship in retirement, remember that a work-life balance is more important now than ever before. You may have been able to burn the midnight candle in your younger years, but working around the clock will come back to bite you in later life. Instead, employ stress management techniques that help you lead an efficient, happy lifestyle. 

Setting Goals

Effective goal setting is the backbone of every great business. However, if you’re used to being on the receiving end of goal-setting meetings, you may struggle to set the course for your own firm. Fortunately, anyone can learn to become a great goal-setter.

Start by setting SMART goals for your new entrepreneurial start-up. SMART goals are:

• Specific: be clear about what you want to accomplish and who will help.
• Measurable: find ways to gauge success using key indicators like profit and revenue
• Achievable: good goals should be realistic as over-ambitious goals will derail your motivation
• Relevant: Why is the goal you’re setting important? Does it make sense to set this goal now?
• Time-bound: How long will it take to achieve your goal and when will you take stock of your progress?

These principles help you set goals that propel your business to new levels. They are particularly helpful if you decide to bring new people on board, too. Rather than setting vague goals like “run a profitable business,” give everyone you employ a clear goal that relates to their specialization, is relevant to their role, and has a clear deadline. This motivates the people around you and increases your chances of finding financial success in retirement.

Financial Success

Retirement is no longer an age — it’s a financial position. This means that you must have adequate funds to sit back and relax after leaving work. Unfortunately, the recent rise in the cost of living means that many people have had to push retirement back as they save more money and build their pensions.

While un-retiring for financial reasons can be stressful, an entrepreneurial side hustle may be just what you need to enjoy the finer things in later life. Owning your own business has a major upside, too: running your own firm is fun. The joy of owning a business can put you on a path toward financial freedom as you’ll never be stressed about impressing managers or smooth-talking clients. Instead, you’ll be fully focused on creating a firm that turns a profit and brings you joy.

Consider speaking to an accountant who specializes in small businesses and retirement law before you get in too deep. Occasionally, governments have laws drawing a state pension and the tax you will pay on your earnings. Knowing your options before you re-enter the world of business is key to ensuring that you’re financially stable on a personal and professional level.

Business Ideas

If you’re considering a return to work in retirement, you probably do not want to stack shelves or put on a suit and sell insurance. Instead, consider pursuing business opportunities that align with your interests. Usually, this means that you’ll want to challenge yourself with retirement work opportunities like:

• Writing: Websites like Substack can help you distribute digital newsletters that folks love. Simply find a niche that interests you, set a price that folks can afford, and market your expertise via online platforms.
• Concierge: Concierge work is usually low-stress, low-impact physical labor like mowing lawns, walking dogs, or checking in on folks in the community. You may need to add some extra skills if you want to provide professional healthcare services, but the investment will open up more opportunities.
• Life Coaching: As a successful retiree, you have a lot to offer. Folks in your field will come to you asking for guidance and insights in time. You’ll just want to ensure that your network is big enough to support your business.
• Tutoring: If you’ve ever taught in person, you can become a tutor. Online tutoring, like teaching English as a foreign language (TEFL), is fun and puts you in touch with people from all around the globe.

These business opportunities can generate plenty of income and will reignite your passion for life. Businesses based on your skills and experience can be lucrative, too. There are plenty of schools that pay a premium for TEFL teachers with experience and you can always top up your income by producing a monthly newsletter.

Alternatively, you can offer your expertise on a freelancing basis. Becoming a freelancer in your professional stream is a great idea if you have a wealth of experience and want to help others reach their potential.

Freelancing allows you to set your working hours and means that you can take time off whenever you’d like. This can be particularly rewarding if there are large periods of time during the year when you’d rather take a vacation or spend time with your family without worrying about the success of your business. 

Conclusion

Entrepreneurship in retirement can be financially and personally rewarding. A good business idea will help generate cash to retire comfortably and will help you meet folks who share your passions. Just be sure to take the endeavor seriously by putting together a clear business plan.

A business plan will help you identify potential roadblocks and will ensure you set goals that are appropriate for your skills and preferences. Just be sure to set aside time for rest and recovery, too, as this will maximize your productivity and protect your long-term motivation.

Abstract

This article serves as a guide to help retirees who want to explore entrepreneurship in later life. It provides practical tips to help folks start a business and gives retirees inspiration for their next entrepreneurial idea. It also covers the basics of good goal setting and touches on a few challenges retirees may face.

About the Author

Indiana Lee is a writer, reader, and jigsaw puzzle enthusiast from the Pacific Northwest. An expert on business operations, leadership, marketing, and lifestyle.