Baby boomers are approaching retirement in a new light. Instead of going on vacations or spending time with their grandchildren, most boomers retire only to look forward to working again. Recent studies show that boomers account for the majority of small business owners in America. Wanting to work after retirement can be driven by various reasons. Some are fueled by monetary needs, while a need to pursue their passion might fuel others.
Setting these reasons aside, turning to your hobby is an excellent way to generate extra income in your golden years. Incorporating the right hobby into a good business plan and executing it well can make your business work. Here are a few tips to get you started:
Assess Your Hobby’s Profitability
Transform your hobby into a business opportunity and see if it can cater to the needs of a specific market. For instance, if you love gardening, you can look into offering landscape maintenance for your neighbors. You can also consider lawn care opportunities. Aside from earning money, your next goal is to identify the problem that your product or service can solve.
Determine How Much Time You Can Spend on It
At your age, you might not have the capacity to work 40 hours a week, even if you want to. And even if you can, it also doesn’t mean that you have to give up the freedom that comes with retirement. As your own boss, chances are, you would not want to spend your entire day working as well. It’s important to set a feasible work schedule while considering other factors such as your health condition, the time allotted for your family and friends, working capital, target income in mind, and commitments you might need to compromise. These factors can help you further decide whether to work full-time or part-time.
Identify Ways to Support Your Business Financially
Small businesses and startup companies often rely on bootstrapping or self-funding. It’s an excellent method to stay debt-free and to minimize the risk of losing a large sum of money even before your business takes off. Nonetheless, should you need extra funds for equipment and other materials, you can also apply for a personal business loan and other loans guaranteed by the US Small Business Administration. Drawing funds from your retirement account is also a viable option. However, one rule of thumb to keep in mind is never to invest money that you can’t afford to lose.
Use Your Connections
Never burn your bridges, even after you retire. At your age, your connections can also be your valuable assets. Who knows? Some of them turn out to be your most loyal customers or even reliable consultants who will help your business take off.
Don’t Be Afraid to Ask for Help and Embrace Technology
Generally, being in your golden years can be proof that you know better than the younger generations. While it might hold for specific life skills and experience, it might not be the same thing for technology. So don’t be afraid to seek the help of younger people. Likewise, be open to accepting new technologies. If you’re starting a business in this digital age, you might need to learn how social media works, website management, e-commerce principles, and other online technical skills. Equipping yourself with these skills is essential to stay relevant in today’s market.
There is never a right time to start a business, so grab the opportunity when it comes—even in your 60s. Starting a business at this age not only helps you generate extra income but keeps your body active and your mind sharp. Once you are retired, it’s the perfect time to do what your heart desires, tick things off your bucket list, and live a life with purpose and without regrets.