Most people dream about starting their own business at some point in their life. Turning passions into income can often seem like a pipedream when you’ve got the commitment of a job. With bills to pay and mouths to feed, financial stability is essential, and often a reliable job is the safer option. A startup business is risky, not to mention time-consuming. Finding the time and money to invest in a business is difficult when you’re working a full-time job.
Though you may never have considered it before, starting a business when you retire from the workforce is one of the best times to do it. Not only do you have a wealth of life experiences to draw from, but you’ve got the time to invest in your venture. There are so many reasons why you should launch a startup business during retirement, and here are a few of them to get you motivated.
1. Less risky
When anyone starts a business, they are taking a risk. Your success and income are reliant on sales, and if you have none, then you will cease to operate. Taking that risk when you have children at home and a mortgage to pay can be daunting. You require steady income to survive, and statistically, the first couple years of a business are always a struggle. Starting once you retire means you won’t have to risk being financially unstable while you work on building your business. You’ll have your pension to cover your living costs and may even be mortgage-free by that point.
There are also investment costs involved in starting any business. If your business fails, you may find yourself in a lot of debt if you had to take out loans or credit cards to fund it. When you’re over 55, you have access to a lifetime mortgage. A lifetime mortgage will release equity in your home, which is tax-free money and doesn’t require monthly payments. The loan is repaid from the sale of your house when you pass away or move into long-term care. It enables you to continue to live comfortably within your home while you launch your startup business. While you can’t use your equity release as a startup fund, it is a way to boost your personal finances.
2. More time
Starting a business when working a full-time job is exhausting. Quitting your job to try to build a business is also not usually feasible and extremely risky. With the number of things to do both at work and at home, it’s nearly impossible to find the time to build a business plan and focus on a new venture. The success of any business requires dedication, and you’ll have the time to dedicate once you’ve retired. The investment of time means putting your all into the business right from the beginning, giving it serious potential. Starting a business as a side hustle can still work, but it will be a much slower process.
3. Work and life experience
In your years in the workforce, and life, you’ve gained skills and experience that you can bring to your startup business. Experience is not something that can be taught in school or through a course. It is only attained over years of trial and error, developing a variety of skills that will benefit you in your business. While the industry you work in will dictate your knowledge base, everyone will have heaps of valuable experiences they can utilize. Problem-solving skills, communication skills, and work ethic are all examples of some of the skills that life experience brings.
4. Good for your health
Retiring can be a hard transition for most people. Having a job adds structure to your daily life. When you’re used to stability and structure, the unknown can be scary. You won’t know what to do with yourself at first, and the freedom can almost be too much to handle. If you like to stay busy and enjoyed the social side of employment, then retirement may have adverse effects on your mental health. That’s because it’s easy to lack motivation or purpose when you don’t have the commitment of going to work. It doesn’t have to be that way, and being retired allows you to spend your time pursuing your passions, which will bring so much joy to your life.
One way to do that is by launching a startup business. Running a business requires time and thought. It will keep your mind active and allow you to maintain social interactions with people. Not only will it give you direction and help you mentally but can also benefit you physically. You’ll likely be out and about promoting your business and attending networking events. It will curb those feelings of loneliness and give you a strong sense of purpose.