Even if retirement is still a world away from you, the time will eventually come when you will wind down your career and retire. As retirement approaches, the question of what to do with all the time and money that would soon be at your disposal cannot be ignored, like starting a business.
Is it too late to follow your dreams? Can you survive a life different from the very structured one you have lived over the last few decades? What about rest, family and the jolly good time that should come after years of dedicated service? How long can you comfortably live on your retirement benefits? Several thoughts run through your mind.
While many find that they might not be able to pursue the dreams they had as youths, lots of retirees discover businesses they can do to keep busy and maintain an income stream. Regardless of your age or interests, opportunities abound for you to tap into post retirement. You might however want to tread cautiously as you are no longer as young and agile as you once were. Since you cannot risk losing your capital, your retirement benefits should be invested in a venture that is guaranteed to bring consistent returns. Low risk should be the watch-word.
Before you make that all-important decision of what business to venture into, consider the points highlighted below;
What lifestyle changes are you willing to take on?
There are certain lifestyle habits you have built over the years that might be hard to drop. Such should be considered in the choice of a business venture. If for instance your job is one that entails a lot of travel, would you be comfortable leading a business that keeps you in one place? Are you looking forward to relaxed mornings post retirement or would you rather a business that allows you keep up the early morning schedule you have run for years? Do you want a business that occupies you every day or one that allows you leisure and travel time as often as you desire? All these and more should inform your decision.
What does it cost to run your household?
Do you still have dependents or are you an empty-nester with only yourself and your spouse to look after? Whatever business venture you settle for must be one that can conveniently cater to your needs and your household’s. While you may not be able to maintain the same lifestyle you enjoyed while in service, the plunge shouldn’t be too deep. You and your family should still be able to enjoy your life together.
Do you have adequate capital to starting a business ?
It is often unsafe to just assume what it will cost to start a business. It is wise to research extensively and make projections based on adequate information. You might find that you do not have enough to properly float the idea that has been dancing in your head. Perhaps you could consider another business line or a less costly but efficient way to execute the idea on your mind.
What about a Franchise?
Have you considered buying a franchise instead of starting afresh? A franchise allows you tap into the goodwill enjoyed by an already established business. It also eliminates the trouble, time requirement and cost of registration, building corporate culture and identity, etc. It could also guarantee that you have a ready market for your business. Buying a franchise can greatly reduce the risk you are exposed to.
Large or small scale?
Do you plan to launch out big or you just want something to keep body and soul together? While a shop in front of your house or even a home office might suffice for something targeted at subsistence, a larger scale business would require logistics such as location, staff, online presence, among others. It is good to pre-determine all these in relation to your health status and available resources.
Bringing it all together, a detailed retirement plan is required to set off on the right foot on the journey to starting a business. A retirement plan will clearly define the resources available to you vis-à-vis the resources you need, thus enabling you to make apt projections and draw up an actionable plan.
Are you looking to retire from running your own business? It’s time to consider a succession plan. Reach out to us for bespoke estate planning services.