How To Start A Business
For Retirement Income

Retirement Business Advocate
Jane Smith

How To Start A Business
For Retirement Income

With Jane Smith

This guide is designed to provide fundamental and reliable information with regard to the subject matter covered. However, it is important to note that this guide is being offered with the understanding that the author, publisher and affiliated companies are not offering legal, financial, or other professional advice. The services of a professional should always be sought. The author, publisher, and affiliated companies disclaim any liability that is incurred from the use or application of the contents of this book.

All Rights reserved. No part of this book may be used or reproduced in any manner without the written consent of the publisher.

Copyright 2018 Robert S. Laura

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Are Pensions, Social Security, And the Stock Market
The Best Ways To Generate Retirement Income?

Retirement income is a popular conversation today, but it's usually within the confines of the big three: stock market investments, Social Security, and pensions. They're all critical components of a traditional retirement plan but what if there was another way for you to add both personal and financial value to your retirement? A supplemental strategy that isn't dependent on the stock market, changes to Social Security or the impact of a former employer going bankrupt.

More and more, research and evidence comes to light that suggests the U.S. is facing a retirement crisis. First is the large number of people who are not going to be able to save enough to maintain their current lifestyle throughout retirement. Second is the growing number of baby boomers who do not feel connected to their job, and want to be part of something bigger that impacts others. Third, more retirees are learning that it's crucial to plan for the non-financial aspects of retirement, including replacing their work identity, staying relevant, and keeping mentally and physically fit.

Unfortunately, media headlines continue to highlight the problem, not the solution. Reality is, starting a business for retirement income can provide a number of important factors essential to a successful transition from work life to home life. Most notably, the ability to address all three of the major challenges facing new and existing retirees.

Unbeknownst to many, this life-changing trend toward retirees starting a business is well underway and gaining critical mass. A 2011 study by Civic Ventures and MetLife reports approximately 25,000,000 people (one in four Americans ages 44 to 70) are interested in starting a business or not-for-profit venture in the next five to 10 years. An AARP study constricts the statistic to baby boomers and suggests that over half of the 76 million U.S. baby boomers have an interest in entrepreneurship. In both cases, these are startlingly large numbers, suggesting that a tidal wave of new businesses are coming and, as a result, there will be a growing need for new, existing, and soon-to-be retirees to understand everything involved in starting a business to generate retirement income.

This guide is designed for two types of motivated people: Those who already have an idea about what type of business they would like to start, and those who may not yet have their initial business idea but know they want to do something that earns them money. Both groups generally have unanswered questions and concerns that they want addressed, including whether starting a business is a prudent investment, what things they need to consider during a start-up phase, what mistakes to avoid, and how to prepare themselves mentally for what's at stake. No matter where they are at in the process, retirees considering this type of venture are not alone, and poised to make dramatic changes to their retirement plans and life.


Does It Make Financial Sense For A Retiree
To Start A Business? Is It A Good Investment?

Yes. Starting a business for retirement income can be a helpful way to put extra money in your pocket during retirement if it's created the right way and is used as a supplement to other retirement income strategies. A retirement business is an attractive alternative to traditional retirement savings vehicles because it generally requires a greater investment of time than money in the beginning, provides investment diversification, and the ability to capitalize on a strategy that wealthy families have used to amass fortunes and pass them on to future generations.

Unlike a traditional retirement plan, in which you save money every pay period, there are a number of options when starting a new business that require very little money. It's time and energy, which many people have, that become their most valuable assets. Whether it's joining a direct sales company, starting a business in your garage, or simply renting out a room in your house, a retirement business starts by being creative and open to using the skills and resources you have.

It's been wrongly said that it takes money to make money. The reality is, if you can't make money without money, you probably can't make money with it. Therefore, instead of redirecting existing or future savings to a business, start by investing time and energy to ensuring it will work and won't become a financial strain.

As an investment, owning a business can actually reduce the amount of risk you have in your retirement plan. A small business has what is called a low correlation to the stock market. That means if the stock market falls 10%, the income you receive from your business won't necessarily fall by the same amount. In fact, if you're a landlord, or you're running a home-based business, such as life coaching, the rent you collect or fees you charge clients won't go down by 10% simply because the stock market did. That's an important component of diversification that doesn't get talked about enough, especially since the Stock Market Almanac suggests that, on average, stock market corrections of 10% happen once every year, and adjustments of 20% or more happen every two-three years.

Starting a retirement business also takes a page out of the handbook of the rich and powerful. The one consistent factor you see among the wealthy is that their fortunes are rooted in a business, which either they or someone in their family started. Their fortunes are tied to entrepreneurship, hard work, leadership, and a desire to make a difference in their community and in people's lives. Furthermore, with some savvy estate planning, their efforts and businesses can pay dividends for multiple generations.

Other financial considerations pertaining to a retirement business include Social Security, pensions, and taxes. It's a widely held belief that changes to Social Security benefits and age-eligibility are likely to change as boomers add pressure to an already burdened system. Moreover, with pensions nearly extinct, retirees need to be proactive in finding income alternatives to those programs. While changes to Social Security and pensions may reduce a retiree's bottom line, claiming small business tax benefits can help defer some of these anticipated changes and reduce their overall financial impact. Making the concept of starting a business for retirement income a viable investment for new and soon-to-be retirees to consider.


Do You Plan To Sell Your "Baby" Or Someone Else's?

An initial consideration for people starting a business is whether they want to sell a product or service they have developed themselves, or something created by someone else. It's not a topic you'll find discussed on most business websites or in business books, yet it's important because an individual's personality, style, and skills will play a crucial role in their business success. One thing new business owners need to be aware of is that if they bring their own product to the market, they carry both the financial burden and the emotional load.

Business Quotes

"There are no secrets to success. It is the result of preparation, hard work, and learning from failure."
Colin Powell

"Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no hope at all."
Dale Carnegie

"Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations."
Steve Jobs

"The entrepreneur always searches for change, responds to it, and exploits it as an opportunity."
Peter Drucker

"Carpe per diem - seize the check."
Robin Williams

We live in a capitalistic society, which means you'll run into people who don't like what you have to offer, who don't want you to succeed, doubt your ability to make it work, and will let you and others know how they feel via conversations with others, online forums, web comments, etc.

Not everyone is wired like Colonel Sanders, who took criticism in stride as he was told "No" over 1,000 times before he got a "Yes" on his famous chicken recipe. And that's okay. If you're not prepared to deal with the mental trials and tribulations that come from promoting your own product or service, don't put yourself in that situation. Instead, consider buying into an existing business or franchise with a proven track record and process.

Keep in mind though, when you're selling someone else's widget, you're usually less attached to it emotionally. That makes it easier to criticize the operation and shift responsibility or blame when things don't go well. This is a slippery slope and an easy way for people to quit before they should. In any event, your ultimate business success is dependent on what you do for the company, not what the company does for you.

People can further reduce emotional stress by aligning their personality and strengths with the type of business they hope to start. By leveraging their personal assets in the beginning, retirees can hit the ground running without having to acquire new skills or overcome personal fears such as public speaking or cold calling.

While some people will inevitably develop some new skills in the process of starting a business, they won't have to jump headfirst into a cold, unmarked pool. They can wade into a section where they can touch, getting comfortable while keeping their head above water.


Do You Plan To Sell Your "Baby" Or Someone Else's?

Understanding the numbers that are inherent to a new business can be difficult and frustrating for new entrepreneurs. A business, especially your own, can start out very exciting as you dream of the freedom, financial gain, and ability to impact someone else's life. But it's important for retirees to understand that businesses live or die based on how much work it takes to make them succeed, not the numbers or mathematical assumptions on paper. Frequently, retirees in the start-up stage will come up with a product or service that addresses a need that exists in a large market segment, let's say a million consumers. Then, they wrongly assume that if they can just capture 1% of the market, or get 10,000 people to purchase their product, they will be well on their way to retirement riches.

Business Quotes

"If you don't like something, change it. If you can't change it, change your attitude."
Maya Angelou

"You must be the change you wish to see in the world."
Mahatma Gandhi

"Never believe that a few caring people can't change the world. For, indeed, that's all who ever have."
Margaret Mead

"If you do not change direction, you may end up where you are heading."
Lao Tzu

"If you change the way you look at things, the things you look at change."
Wayne Dyer

But starting a business based on those kinds of numbers is a sign of a true amateur, and a reason so many new businesses never make it past the first year. If capturing that 1% of customers were that easy, 85% of new business would succeed, not fail each year.

Aspiring writers represent another good example of people who need to understand the numbers. Turning your idea for a children's book, murder mystery, or cookbook into a $10 paperback, then selling 5,000 copies, doesn't seem farfetched. Based on simple multiplication, how could any retiree balk at adding an extra $50,000 to their retirement account ($10 book x 5,000 buyers)?

Attractive numbers, combined with the seeming ease of publishing a book these days, illustrates how the dream of a post-retirement writing career can be born. Retailers, however, can take up to a 55% cut from a book's final sale price ($5.50 from a $10 item).

That may not seem like a terrible split, considering the marketing and web traffic they bring to the table but, when you factor in the cost to produce a book (say, $3.50 per copy) plus another $1.00 per copy or so for shipping costs, you could wind up actually paying people to read your book instead of making money. That doesn't mean it can't work, it just means there's more to it than coming up with a snappy boom title and simple money-making math on paper.

Don't take these points as discouragement. Instead, this dose of reality supports the need to align yourself with a business that fits your personality, strengths, and the degree of work you're willing to do.


The Only Time You Start At The Top Is When Digging A Hole

As a warning to new entrepreneurs, you cannot spend your way to business success. Too often, new business owners spend unnecessarily in an attempt to fulfill their dream of being a respected entrepreneur. Even before they get their first client they invest in the latest and greatest tablet, cell-phone, client relationship software, website, or office space in an effort to prove to themselves and others that they are in business and ready to make money. Starting and running a successful business, however, has little to do with how much stuff one has, or how new it is. It's more about your mindset, sacrifices, and acquiring paying customers.

Undoubtedly, start-up costs may include a physical location, business cards, telephone, and web presence, but new business owners are encouraged to minimize expenses. This can often be accomplished by waiting until actual revenue from customers is available instead of periodically dipping into personal retirement savings to stimulate growth. In a new business start-up, sometimes the best way to make money is to be conservative and save money.

Therefore, before digging themselves into a financial hole they can't get out of, retirees need to get a product or service to market as inexpensively as possible in order to prove that their concept is viable and that associated costs will not deplete their other savings.

By minimizing expenses early on, people can also position themselves to weather unexpected storms. One of the big threats any new business faces is under-capitalization (not having enough money to carry on in face of difficulties, industry changes, or business-specific demands, such as franchise requirements.)

By creating a contingency budget and being realistic about actual needs versus wants, retirees can meet unforeseen challenges head on, enabling them to stay focused on growing their business instead of turning bitter, becoming soured on a franchise relationship or, worse yet, jeopardizing their customer's experience.

Hidden costs and payment delays are staples of the business process, so it's important to go in prepared to deal with such matters instead of being merely reactive, or becoming paralyzed by the situation. Interested retirees can find countless examples on the web.

Very few business owners ever say, "My business didn't cost nearly as much as I expected" or "I made twice as much as I projected." It's usually the other way around, i.e.; "My business cost way more than I anticipated" or "Revenue is still light but we're confident things are picking up." It's all part of the learning curve new business owners experience.


Starting a business to generate retirement income is a powerful and popular trend, and an essential consideration for those considering retirement. It's true that starting a business is much harder than simply plunking money into an investment account and placing a couple of trades. But starting a business isn't just a financial decision. It's one that can also help people manage the mental, social, and physical aspects of retirement.

Whether starting a not-for-profit; embarking on a writing career; joining a network marketing company; or bringing a product to market, business start-ups signal a major change in the concept of retirement no one can afford to ignore and, if it seems right, begin working towards. The following inspirational wisdom, inscribed in Westminster Abbey, concisely summarizes the point that any change, no matter how small or significant, starts with you!

"When I was young and free and my imagination had no limits, I dreamed of changing the world.

As I grew older and wiser, I discovered the world would not change, so I shortened my sights somewhat and decided to change only my country. But it too seemed immovable.

As I grew into my twilight years, in one desperate attempt, I settled for changing only my family, those closest to me, but alas, they would have none of it.

And now as I lay on my deathbed, I suddenly realize: If I had only changed myself first, then by example I might have changed my family. From their inspiration and encouragement I would then have been able to better my country and who knows, I may have even changed the world."

The retirement landscape is changing. Are you ready? Are you planting the right income seeds? The ones that will add diversity to your other, more traditional, retirement income plans? Are you prepared to nurture those seeds by turning your passion into a business that makes a difference to you, and maybe to others and your community? Are you prepared to deal with the weeds? Whether it's the people who don't believe in you, unexpected costs, or other challenges, you don't have to fight them alone or without expert support!

No matter where you are at in the retirement planning process, I want to invite you to learn more about how you can use a retirement business to make a successful transition into this next phase of life both personally and financially. Call me today (555) 555-0123.


How To Start A Business
For Retirement Income

Jane Smith
123 Main Street
City, ST, ZIP
(555) 555-0123