Retirement used to be a time to kick back, relax and enjoy the fruits of your labour.

But with longer life expectancies and the increasing cost of living, many retirees are seeking ways to supplement their income and stay active. One way to achieve this is by starting a business.

This article, complied by National Seniors Australia, explores some of the reasons for starting a business and outlines the steps you might want to take.

Bear in mind that many businesses fail, and your stage of life may affect your ability to recover from that failure.

On the other hand, if your business is successful, it may affect your Age Pension or other benefits, and you could find yourself in a difficult tax situation.

Benefits

The obvious first benefit of starting a business in retirement is that supplements your savings and income. This can be especially beneficial for retirees who have not saved enough for retirement or who want to maintain a higher standard than their super and/or pension will allow.

Starting a business can also provide a sense of purpose and fulfilment. Many retirees struggle with the transition to retirement and miss the sense of accomplishment that comes with work.

Operating your own business can provide a renewed sense of purpose and energy.

Finally, it can provide an opportunity for you to pursue a passion or interest that may have been put on hold during your working years.

As always, before you commit money to any project, secure independent professional advice.

How to start

Starting a business in retirement requires careful planning and consideration. Here are some tips for building a successful business in retirement:

* Identify a niche. Start by identifying a need in the market that you can fill. Look for gaps in the market where there is an unmet need or underserved market. For example, if you have a passion for gardening, you could start a landscaping or gardening business.

* Conduct market research. Before starting any business, it’s important to conduct market research to ensure there is demand for your product or service. This will involve researching your competition and analysing their strengths and weaknesses. You can also use surveys and focus groups to get feedback from potential customers.

* Develop a business plan. This will involve outlining your business goals, strategies, and financial projections. A business plan is essential for securing funding and ensuring your business is sustainable.

* Secure funding. This can involve seeking investors, applying for a loan, or using your own savings. Be sure to carefully consider the financial risks and rewards.

* Leverage your experience. One of the advantages of starting a business in retirement is that you have years of experience to draw from. Leverage your experience to build a strong brand and establish yourself as an expert in your field.

* Embrace technology. Today’s businesses rely heavily on technology, so it’s important to stay up to date on the latest tools and software. This will help you stay competitive and provide a better customer experience.

The main thing to remember is not to take on more than you handle. If you decide to start a business, or to do any work in your retirement, pace yourself.

Being involved in a business may make you feel good about yourself, but you’ve also earned the right to relax and smell the roses.

Disclaimer

Any links provided are for general information only and should not be taken as constituting professional advice. National Seniors is not a financial advisor. You should consider seeking independent legal, financial, taxation or other advice to check how any information provided relates to your unique circumstances.