Most seniors are worried about being an entrepreneur and want to avoid making a big mistake that might deplete their retirement savings. The businesses mentioned in my book are just to that point. You can’t make a tragic financial mistake if you have only invested a few thousand dollars. Look for businesses that are service oriented, which frequently require a lot of your time as the main investment but not a lot of your money. You may lose 1000 hours of your time but only a little of your money.
Many businesses go astray when the market for their product and the price they feel they need to sell it for doesn’t materialize. If you have already signed a multi-year, store lease for your sales, you could be stuck with thousands of dollars in rent, utility bills and other fixed costs. If you have a product you want to sell, find a temporary venue such as a public market or a summer festival that you can try selling it at. You may have to pay $200 to $300 for a day or weekend space but you can set up a table to sell your product. If your sales are not overwhelming, you should reconsider making that product into a business. When you sell at the booth, you will get a lot of honest feedback on what customers think of the product and the price. Listen to them; it may save you from a big mistake.
Can you rent some of the equipment needed to operate your business with no long-term commitment. You may have to pay too much to rent the equipment to make much profit, but it will help you gauge your market size and will allow you to determine if you really want to do this for a significant portion of your retirement time.
Go work with someone who is already in the business you want to start. You may have to go a distance away from the location you envision for your business but you can learn a lot from a little on-the-job experience.
Start a hobby business. I’m a rock hound and I envision collecting valuable minerals (gold, rubies, sapphires, emeralds) and fossils and selling them for my retirement business. If my business is not successful, I will probably continue spending my time collecting valuable minerals and fossils and keeping them in my private collection. So in trying a hobby business, I will be doing what I would otherwise do for fun. I might even get some tax breaks for trying it as a business.
This new weekly column, 101 New Business Ideas for Retirees, is compiled specially for CoolBusinessIdeas.com readers by Stan Spector. See all articles in this column by Stan Spector.
Stan Spector is the author of “Baby Boomers’ Official Guide to Retirement Income – Over 100 Part-time or Seasonal Businesses for the New Retiree”. The book website is at StanSpector.com.