so retirement hovers in the next two years- sometimes quietly waiting its turn and other times demanding “now” but I aim to hold off for a bit. Eligible now but want to wrap up a few things. For the first five years after retirement, I want to either work part time at a job I love- with the luxury of not needing benefits, etc. Maybe in an area I feel passionate about like child literacy, or animal rescue.
But (and here’s where you weigh in) the idea of starting a small side business has taken hold and wont shake loose. I’ve considered several avenues, but what would you do if you were standing at this crossroads? What business might you be interested in? Is it smart to start up now while still working fulltime/with a paychekc? Thoughts? Opinions?
My husband is approaching retirement age and is considering downsizing his job to three days a week and using the other two days to pursue other interests. This is quite possible at the place where he works, and if he works 3/5 time, he can keep his benefits. His salary for 3/5 time would be adequate.
Might something like this work for you? Could you continue part-time in your current job while making an effort to start your small side business and then retire completely from your current job when the business gets going or when you change your mind about it?
Some questions (please don’t be offended, these are just what came to my mind from reading your seed of an idea).
Are you thinking of a business where you would market a product? A service?
Would this be something you would do on your own out of your home or would you need space somewhere?
Would you be working on your own or would you hire employees/volunteers/interns?
What kind of investment would you need to make in order to start it up?
What skills do you already have that could be put to use in the business? What new skills would you need?
And above all, what are you really passionate about and care enough about that it would count as “fun” in retirement and not end up being “work” for you?
Just make sure whatever money you are investing is what you could afford to lose. I personally think it is very risky to start a new business when you are ready to retire because I don’t think there is any new business without risk.
Hate to say it, but this seems a little upside down to me. I would think the passion for --or at least the idea for – a particular product, service or activity would come first, and then the idea of turning that product, service or activity into a business would follow after that.
Do you have particular skills or expertise that are in demand? Or do you have a hobby or avocation that you are passionate about? It seems like those are the places to start.
Another issue with side businesses is that you may have to clear them with your employer – and employer policies differ.
I worked for a few years for a company that forbade its employees from doing any moonlighting, consulting, or freelance work of any kind. I suspect the same policy would have applied to having a side business.
My current employer doesn’t forbid any of these things, but employees have to be very careful about potential conflicts of interest.
At my previous workplace, an employee was essentially working for himself (his new startup) for almost half a year. He almost never showed up for work but kept getting full pay.
How he could manage to do that is beyond my understanding. I guess when the executives concentrated their efforts on how to sell out the company, to get rid of or significantly reduce the debt by “threatening the investors already on hook - you may get nothing if I bankrupt”, and/or to make sure that their golden parachutes are in-place, they really did not care much about how low-level managers tried to get hold of some small peanuts because they themselves got a much larger goodies right before they walked out of the door (BTW, the (work) life span (at a given company) of the CEO at many companies could be shorter than the majority of employees these days. Some may argue that it may be more cost effective to hire a CEO as a contractor.) The morale and ethics of the whole company could not be lower. You could never imagine a company could be run (down) like this unless you have a chance to see it.
I think perhaps I haven’t framed the question clearly. I have ideas of what product/service I might offer and even have a rough business plan. I was more interested in whether either or you had considered the idea, what would you do if you were standing at this crossroads? What business might you be interested in?
I already own a business, but if I didn’t want to have an actual established service I provide I would do consulting on how to run a more efficient profitable medical business. I’m shocked at some things I’ve seen along the way. I already want to fix the pt office where I go 3 days a week.
I would like a future job to be virtual, meaning I could be free to travel as long as I could have internet connection to do my actual work. I don’t see myself traveling the world and hopping daily from one stop to the next, but having freedom to spend time with my relatives in different states, and of course spend more time at the beach.
I haven’t figured out what skill set I have that is valued online, but have it in the back of my mind to develop/polish skills toward that goal.
I’ll go with my dad’s advice who has had several successful businesses over his lifetime.
Do something you love. It needs to sustain your interest to keep it going. I put this as number 1 and he would say it is a given without mentioning it.
Know your business. DO THE RESEARCH. FIRST. Who else has your product? What are your prospects? Costs? Manufacturing? Shipping? Time?
Don’t get discouraged if you think you have a great product. Plug along. Try new things.
Figure out the finances. My dad has never gone into debt for his business ventures to any extent that it would hinder family or future. Not making a profit is not the same as getting into debt. If you can’t afford the loss if something fails, figure something else out. Get a budget.
Try out your idea on a limited basis. Take it to your local market and see if people like it. That could be a local store/internet site or even a flea market venue. If you don’t want to do the work at that level, well, you really didn’t care much.
Perfect is the enemy of the good. Try things before you necessarily think it’s “perfect”. It’ll never be perfect. No company ever put out a product that didn’t become “new and improved”.
