Beyond the Pension: A Guide To Building a Profitable Business in Retirement

Many people dream about going on early retirement so they could spend all their days traveling, relaxing, and engaging in activities that they truly enjoy. But rather than fully retire, a lot of Americans are thinking about starting a business in their second act to be financially independent. According to a survey, 53 percent of individuals are planning to start a small business or a side hustle in retirement to help make ends meet.

Having a business can help you stay active, give you a sense of accomplishment, and boost your happiness after you fully retire from your day job. However, it's important to plan your entrepreneurship journey for business success and a joyful retirement. Here's a guide to build a profitable business in your golden years.

Pick a Business that You Enjoy

A lot of people get business ideas from whatever's trending at the moment. Though it may be tempting to build a trendy startup, you may be better off with a business that you truly enjoy. Being an entrepreneur means putting on more than eight hours of work every day, especially during the first year of the business. Doing so much work can be draining and exhausting, but running a business that’s tied to your interests or expertise can make your days more bearable, even during difficult times. According to Melissa Bradley, a professor at the McDonough School of Business at Georgetown University, the ideal business idea is “one that you are passionate about as well as one you have skills or experience [in].” Choose something that you can see yourself doing day in, day out so you can enjoy your new career path.

For instance, if you've always loved cycling, consider starting a bike repair business, a bike accessories shop, or a biker-friendly cafe. Love making good food but don't want to run a restaurant? Try selling meal kits or baked goods, or think about becoming a personal chef. There’s something out there that's right for you, so explore the possibilities before making the big leap.

Make Time for Research and Learning

Market research is a crucial first step for any type of venture since it helps you to reduce risks during the planning stage of your startup. To get the information that you need, you'll need to join community groups online, or do it old-school by handing out surveys or questionnaires. Ask if there's a demand for your product or service, and find out if there are similar businesses in your area. You'll also need to know the income range of your target customers so you'll have a general idea on pricing and marketing strategies.

If you're planning to set up a physical shop or business location, walk around town and do an ocular inspection of the place. You need to find out if it's safe and visible, and if it's near where your potential customers work or hang out. After all that has been sorted out, write a business plan. Ideally, it should include how you plan to structure your business, how you'll fund and run it, and your strategies for its future growth. For entrepreneur training, think about taking free online courses from the Small Business Administration or the Kutztown Small Business Development Center.

Do the Paperwork

Whether you're running a startup from home or in a shop or kiosk downtown, see to it that you complete all the necessary paperwork to make your business legal. After choosing your business name, you'll need to pick a structure for your venture. Some of the most common types of business structures for small business owners include sole proprietorship, partnership, and limited liability company (LLC). If you're a freelancer or have a small online business, sole proprietorship is likely the best fit for your business, while a partnership is suitable if you own the business with two or more people.

For maximum liability protection though, it's recommended to choose an LLC since this business structure protects your personal assets in case of bankruptcy or lawsuits. If you need help to create an LLC, consider getting assistance from a company that offers LLC formation services. Use a Northwest Registered Agent promo code to get a discount on formation services costs, and let the experts handle this for you so you can focus on other urgent matters for your business.

Promote Your Startup

It's time to get the word out there about your startup, so roll up your sleeves and get ready to do some marketing and promotion. These days, most people turn to Twitter, Facebook, TikTok, and Instagram to find the products and services that they need, so you'll need to be diligent about posting content on social media and other digital platforms. If you need to brush up on your digital marketing knowledge, think about taking an online course on Hubspot, Coursera, or Google Digital Garage.

Make the most of your earning potential by starting a business during your retirement years. Be sure to make a solid plan, and choose a business idea that you're passionate about so you can have fun, stay independent, and boost your personal savings at the same time.