This Guest Post is provided as a courtesy from Annabelle at elders.center.
Today’s seniors are healthier and living longer than previous generations. With the knowledge and expertise they have gained through years of experience, it’s not surprising that they have higher self-employment rates than younger workers.
If you want to use this phase of life to pursue your dreams and become a business owner, these strategies from Secrets of Aging can help you get started on the road to success.
Come Up With an Idea
Entering the business world in the midst of the pandemic can feel overwhelming; however, with a strategic approach, you really can become a “covidpreneur.” The first step to launching a company is to determine the product or service you want to sell. Some entrepreneurs convert the expertise they learned during their careers into private consulting businesses. Others prefer to make a bigger shift and base their businesses on longtime hobbies. With a bit of creativity, almost any passion can be transformed into a business, including:
- Taking photographs
- Creating artwork
- Writing books or articles
- Baking or canning food
- Growing fruits and vegetables
- Handcrafting furniture
- Sewing or knitting
Go Back to School Before Starting Your Business
If you want to learn more about running a business before actually starting one, you could go back to school to earn a degree. Many people are pursuing higher education in retirement to help them learn competitive skills and fulfill a dream they’d always had in the back of their minds. These days, going back to school is as easy as sitting down at your computer. Online universities have made earning a degree in a variety of subjects easy and flexible, allowing you to set a schedule that works for you and your family.
Run Your Business From Home
Launching your new company from the comfort of your house is a strategic business move, and ensures a layer of safety right now. For starters, it allows you to launch without a lot of capital. Because you save on overhead costs and can take a home office deduction on your taxes, a residence-based business mitigates your risk and requires substantially less money than starting one in a separate location.
Working as a covidpreneur from home also offers both flexibility and convenience. If you’ve spent most of your adult life dealing with a long commute and rigid working hours, imagine the freedom that comes from this type of arrangement. Additionally, if you are dealing with mobility issues, working out of your dwelling can eliminate obstacles and make everything easier.
Consider Your Finances
Because working out of your home helps avoid hefty overhead expenses, your need for up-front capital should be minor. However, if you still need a bit of money to get things started, there are two options. Some senior entrepreneurs opt to use a portion of their retirement money. However, if you do this, avoid financial penalties by understanding and following the rules for withdrawing funds.
A second option is to finance your business through your regular monthly income. To avoid overspending, determine the amount you can comfortably cover with your Social Security income, private pension payments and any other revenue you have. Luckily, operating out of your home provides you with the luxury to take things slowly and grow your enterprise at a comfortable pace.
Form a Limited Liability Company
As a budding covidpreneur, a time will come when you need to register your business, so consider forming a limited liability company (LLC). This type of a business structure requires less paperwork and provides more flexibility than other alternatives, and it separates and protects personal assets from liability. Moreover, LLC status can save you money by allowing you to claim company profits as personal income. You don’t need an attorney to file; instead, many entrepreneurs use a formation service to ensure that they satisfy the state-specific rules and regulations.
If you reach retirement age but feel like you have more to give, starting your own company can be the ideal solution, even during the pandemic. By running the business from your home, you can save time and money, reduce risk and grow your venture at a comfortable rate and budget.
For more information on how to start a home-based business as a senior, get my book Work At Home & Digital Marketing for Seniors.
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