For some Americans, the best part of life starts at retirement. This new stage of life can mean no more answering to upper management, battling a 40-hour workweek or being stuck in rush-hour traffic. Retirees can come and go as they please.
While spontaneous trips to the beach and the relaxing mood of an empty house may be a draw for some, for others, the novelty wears off quickly, replaced by an undeniable void. Some older Americans feel the need to get back to work, and they often become entrepreneurs as a way to balance their desire for independence and their passion for success.
Contrary to popular belief, entrepreneurship is not just for the millennial generation. In fact, people over 50 are one of the fastest-growing groups of entrepreneurs in the United States, according to a recent Gallup study. But what does this booming sector of the country need to know before making the leap post-retirement? Here are four tried and true tips for a successful entrepreneurship later in life.
1. Pick your passion. Make sure your new business is something you actually love to do. This is true at any age, really. Whether you want to start your own consulting firm, become a furniture craftsman, open an art studio or run an action-adventure tourism service, the possibilities are endless. Why waste your time and money starting a business you’re going to hate in two years? Did you know 70 percent of Americans are unhappy about their jobs? Don’t become a statistic. Instead become happier and healthier doing something you love.
2. Be realistic. Even if your greatest joy is dressing your cats in wacky outfits, that may not translate to a huge market for kitty-couture. Before moving full steam ahead on your business idea, start by asking a group of colleagues, mentors or advisers if your idea has merit. Friends and family members can help, too. You can even form a focus group or crowd-source market research to test your concepts and get feedback. If you discover that nine out of 10 people would shell out beaucoup bucks for a feline fedora, you could be on to something. Otherwise, back to the drawing board.
3. Stay current. Social media and technology’s influence on businesses aren’t going away any time soon. So make sure you brush up on your digital skills. Whether you need to develop an app to better communicate your service or product to consumers, or you simply need to keep your finger on the pulse of the marketplace through Twitter and Facebook, it’s wise to embrace all platforms and keep up-to-date on what’s out there.
4. Protect yourself. Starting a new business can be, well, risky business. It’s important to protect the nest egg you created before you retired, in addition to safeguarding your new business venture. When making the decision to exit retirement and enter the workforce, be sure to get all your paperwork in order.
“New business owners in their later years should always be prepared for the unexpected,” said Leo Heintz, a vice president and product manager at Erie Insurance, in Erie, Pennsylvania. “The right insurance policy … can help support your family if something happens to you. It can also ensure your business can continue to operate, which benefits employees and their families. Everyone benefits.” Heintz advised checking with an insurance agent to make sure you have the right amount and right kind of insurance.
Despite the risks, starting a new business can be an exciting and rewarding endeavor. And don’t forget to surround yourself with supportive friends and family members as you enter this new stage of life. — brandpoint