Are you thinking about starting a business in retirement? You’re not alone. Baby Boomers are starting businesses in record numbers.
An Entrepreneur.com article (https://www.entrepreneur.com/article/245366) cites several reasons why Boomers are likely to succeed in their endeavors.
“If you think the largest demographic in the entrepreneurial world is millennials, think again. Baby boomers are actually the most powerful entrepreneurial group, giving up retirement for Career Number Two (or three, four and so on.) The idea of retirement isn’t what it used to be, whether by need or by choice.
Some baby boomers simply can’t afford to lounge around the house, playing with grandkids and working on their golf swing, while others simply don’t want that laid back lifestyle. The American Dream never ends, and baby boomers are finding that they are in the perfect position to build their own business.”
Here are some things to consider if starting a new business is part of your countdown to retirement plan:
- Capitalization is easier when you’re employed. We would not have been approved for a mortgage for the VRBO property that is our retirement business if we had applied after my husband retired. Many types of loans require earned income to qualify.
- Networking is easier when you’re working. Once you leave the workforce you’re circle of business contacts begins to shrink. Utilize wok contacts and expand your circle while you’re still employed.
- It takes time to build momentum in business. Your new venture may not be profitable in the first few years. Absorbing any initial business losses is easier when you still have steady income coming in.
- Working part-time in a business you’re interested in starting is a great way to find out if it’s a good fit. Often the reality of what you want to do is very different than your perception.
- Seek guidance from the Small Business Association, franchise associations, or other professional organizations relevant to your business. Learning from those who have already been successful will save you time, money, and frustration.