5 Reasons to Start a Business in Retirement

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Starting a business continues to be a challenging prospect for many founders, and according to a recent Forbes article, about eighty percent of all businesses never make it past their one-year mark. Various factors contribute to this, how strong a business’ leverage is among the most notable. 

How experienced is your founder? How resilient are your business strategies? Who gets to lead your business in specific areas?

These questions reveal the advantages that retirees have over younger founders regarding business management and, according to reports, nearly two-thirds of American retirees get the itch to start a small business. Giving the business world a try can never be a miss if you’re a retiree. Here are five reasons to start a business in retirement. 

  • Access to Established Financing

One of the key challenges for younger founders is runway capital. Some founders get the backing from big financial players based on the passion they have for their idea or the business potential of the company, however, not the majority of founders don’t get this lucky. As a founder, typically, the younger you are the higher your risk and the harder it can get for you to secure financing. 

You may have locked in over two decades of your service as a retiree. That gives you enough credit leverage when dealing with financial institutions, apart from personal savings, which can be directed into the business’ account. These two factors can translate to less financial stress when starting. Also consider the need for effective financial planning, as this helps founders of all ages make better business decisions. 

Remember that, like all others, retiree founders are still not immune to abrupt financial shocks in business. Furthermore, as a retiree, you have to ensure that your business and personal assets are properly protected. This is where an estate planning attorney or firm like Prime Wealth Advisors comes in. Experts like these offer a range of wealth management services for guaranteed financial protection.

  • An Opportunity to Work

Many employers may be more inclined to hire younger workers, and although it is illegal to discriminate based on age (in most states those 40 years and above are protected), it can be said that retirees are likely to be more prone to sicknesses and illnesses due to advanced age. With that being said, however, the sloppy clichés of stereotypes are not reflective of seniors across the country. 

The best way to attain some level of job security as a retiree is to start your own business. It eliminates the potential obstacles of some employers seeing you as less efficient or less contributory as a worker than your colleagues. By starting your own business, you may be able to extend opportunities for work to fellow retirees struggling with the aforementioned biases.

Fortunately, starting a business has become easier than ever due to structural changes and the proliferation of smart technologies. For instance, with outsourcing and remote working on the rise, startup companies may not have to do so much workplace training and monitoring of their staff.

This is because entire sectors of operation can be handed over to external businesses with outsourcing, and the employment of remote workers can reduce the need for office space, saving on rent and other expenses.

  • Readiness to Lead After Service 

Retiring after active years of service as an employee can be the best time to shift yourself higher up the hierarchy, especially if you’ve had dreams of becoming your own boss. Some say the best leaders have been the best employees in times past.

Serving for two decades is no easy feat. It doesn’t automatically make you a good leader, but it helps you identify one. That gives you the opportunity to promote effective workers and also create various examples for other employees to emulate. The best part about becoming a leader through service is the ease of hiring other people to join your fold. 

  • You Have Niche Experience

In some cases, retirees are privileged to have worked in a specific industry for as long as the industry has existed – think IT, for example. Others might have worked within different sectors that have been around much longer. For instance, you may have been a regular marketing employee, thinking big and using traditional marketing methods in the best ways possible. 

Suppose your stint as a marketing employee included some time in the internet takeover when digital marketing became a thing. That enriches your experience level, making you an asset to any business.

This time around, why not yours? As someone with significant knowledge about the job, you reduce your vulnerability to failures you’ve experienced during your time as an employee. This gives you enough room for success as a retired entrepreneur.

  • A Chance to Revisit Your Passions 

Following your passion at a younger age can be risky. Revisiting these passions after working hard to stabilize your financial life can allow you the freedom to explore said passions without the concerns you had before. Your business can be anything from your love for children’s toys to your passion for making customized cakes. 

All in all, the joy of becoming an entrepreneur in your retirement doesn’t solely depend on financial gains. For many founders, the purpose of a new venture is fulfillment. Therefore, it’s crucial to hold on to your dreams, and these reasons, if you’re contemplating becoming a retired business founder. 

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