When you are in retirement stage, you may think that you have nothing else to do but in reality, there is a lot of work still to be done. First, you can still earn more money during these sunlight years. Second, you can put up your own business to augment what is lacking in your retirement fees.
But according to Jim Then, an associate trainer and consultant for retirement planning and financial literacy at the Centre for Seniors, there is only one out of 20 seniors who are interested to start business after retirement. He says that seniors are aversive to taking risks especially when it involves their retirement pay but for those who would like to start business after retirement, here is his advice. "Decide on how much funds to set aside for your lifestyle needs. Whatever is excess is what you can afford to lose. The capital outlay should not eat into one's retirement nest egg,” he says.
According to Helen Dennis, a specialist in employment and aging, there is indeed power in the midlife. "Entrepreneurship isn't just for brilliant kids eating pizza at 2 a.m.," she says. "There's just as much energy and creativity in midlife."
So when you decide to start business after retirement, here are just some of the things you need to do.
Have a change of lifestyle. Some stories in the internet have shown a couple of good middle-aged couple who have sold their business altogether and made thousands out of it. One of them is couple Jennifer Chung and Simon Yuen who sold their chocolate manufacturing business in which they could have retired comfortably. But they had other plans in mind. Instead they started their own taichi school, which is part of their lifestyle as both had been practicing the art of the sport for 12 years. At the start, they started with 300 plus students and then ballooned to around 1,000 students.
Look at other possibilities. When you want to start business after retirement, you might want to think about expanding and looking at other possibilities. Such person is Amy Chua who started her own Age Management and Enrichment College because she wanted to help improve the self-confidence and self-image of women after being part of a course on entrepreneurship. She was a retired college teacher and she spent all her savings into putting up her own school. The risk paid off, though, as her school is moving to a new space with students who want to drastically change their image and personality.
Give boredom a chance. If you are bored with retirement, playing only leisure activities and stuff, then you might want to get out of that and start your own IT company. That was what William Liu, a former CEO of an IT company, who got bored playing golf, traveling, reading books and meeting new people. To start business after retirement, he decided to put up another IT company and invested $100,000 of his savings. "Working keeps me mentally and physically fit, especially now that I enjoy what I am doing. It gives me satisfaction to be able to offer my experience,” he says.
Do something meaningful. Sylvia Lee, Lee Pak Kheng and Woon Lai Har began their own NGO company called Lotus Culture which supports Cambodian NGOs in the areas of health, education, mental care and employment. One of their goals is to raise at least $260,000 to support projects for women who are suffering from distressing situations.
Have some spare cash. Of course when you decide to start your own business, you need to have some spare cash on hand. There are some banks, such as those in Singapore, that actually offer loans to seniors to start business after retirement provided that they can convince the banks that they have potential to grow and that their businesses have commercial stability.
Know what you are good at. Dennis Sargent, coauthor, with his wife, Martha, of Retire — and Start Your Own Business says, "A high percentage of retirement businesses take advantage of the knowledge and contacts retirees already have.” His wife, on the other hand, says that in high tech especially, "contacts are good for about 18 to 24 months.” So when you retire, think of turning your hobby into a profitable business.
Joy Mali is an active blogger who shares interesting financial management tips over the web that encourages people to check credit scores regularly for a happy financial life.