Guest Post: The Best Advice for Retirees Aiming to Start a New Business

Written By: Jim McKinley

There are many different reasons for starting a new venture after entering retirement. Maybe you want to pursue a business idea you never had a chance to realize before, or maybe you miss putting your knowledge and skills to work. No matter what’s driving you, your first priority needs to be keeping your financial future secure and intact.

Check Your Perspective

Your first step toward developing a successful business during retirement is developing a realistic fiscal outlook. As Inc. explains, thinking in terms of the financial future is a must. Even if you retired at a young age, are currently economically sound, and are in great health, you need a strategy oriented toward long-term success on all fronts. According to some statistics, nearly a third of all retirees must dedicate 40 percent of their retirement income toward existing debts, and if you have a situation where you’re starting out your business barely making ends meet, you are more apt live with stress and financial struggle instead of making good headway.

Examine Debts

Acknowledge any debts you have, including your mortgage. If you already owe money to creditors, make it a point to become debt-free as soon as possible. It might be a good time to downsize your home, and you should examine what you have in your retirement savings. Also, take a hard look at your credit report and examine it for any accounts that don’t belong to you, clerical errors such as incorrect dates, or old debts which should be removed. According to ConsumersAdvocate.org, investing in a credit repair service can mean entering into your new business venture with solid financial footing and better peace of mind for your golden years.

Solidify Your Plan

Once you have a good feel for your financial position, take an earnest look at what you expect to be doing. US News notes the largest part of success for small business owners is making a solid business plan, which includes recognizing an existing need and then finding a way to meet it. Are you offering the right product or service at the right time? Do you already have the abilities to fill that niche, or do you need to invest in special equipment or training? Some retirees turn a hobby into a small business, such as making handyman repairs, landscaping, or selling handcrafted items online. You might decide to be a real estate agent, in which case you should check the requirements where you live.

Resources for Funds

According to the Muse, if your business idea requires a substantial investment, you might decide to take out a loan or find investors willing to help finance your endeavor. You could reach out to friends and family members through crowdfunding, or connect with specific people you think might be as passionate about your idea as you are. Think about the need you intend to meet as well as who will be impacted and how. Be creative in your outreach, be ready to pitch your idea, and you might be pleasantly surprised at the outcome.

Pathways and Exits

How long do you plan to work at your new venture? Depending on your objective, you might only intend to work for a set number of years. For instance, some people work until they reach a particular financial goal or a specific age, while others develop their businesses with the intention of passing it along to someone else later. Have a plan in place for how you will later exit your business. Your business’s legal structure can help determine your exit strategy as much as your goals, and certain formats can also help protect your personal finances. You may wish to explore the AARP’s entrepreneurial resources when deciding how to proceed.

Taking on a new venture during retirement is a big step. So, weigh your situation carefully to ensure your financial well-being. With some careful planning, you can start a new business without risking your future.

Like this article?

Share on Facebook
Share on Twitter
Share on Linkdin
Share on Pinterest

Related Posts

Desert garden illustration landscape

From Surviving to Dominating

How Waters Business Consulting Group has helped transform many commercial landscape companies into more profitable, scalable businesses Every commercial landscape company eventually hits a moment that defines what happens next. For some, it’s growth outrunning the systems meant to support it. Revenue climbs, but profit doesn’t follow. Labor costs creep up. Cash gets tighter. The owner is working more hours and feeling less in control of the business every month. What used to feel like success starts to feel like an endless string of problems to solve from employees, field operations, customers to cash flow. For others, the challenge shows up faster and with more urgency. Margins have already eroded. Operations are inconsistent from crew to crew. Leadership is stretched too thin. Customers expect more, and the company doesn’t have the structure or financial visibility to respond. In both cases, most owners reach for the same fix: more sales. But more sales don’t automatically fix thin margins; the exacerbate them! With fuzzy accountability, inefficient processes, or an owner who’s become the bottleneck. Usually, what the company actually needs isn’t more revenue. It’s a better business. Waters Business Consulting Group has worked with commercial landscape maintenance and construction companies across the country, including Pleasant Places, Blue Star Landscaping, Genesis Landscape Solutions, Sun Country, and Creative Environments, to find what’s really limiting their performance and build practical paths toward stronger profitability and cash flow, tighter operations, real leadership capacity, and long-term value. Our goal was never just to help these companies survive. It’s to help them build what it takes to lead and increase the the value of their business asset.   Struggling doesn’t always look small Some of the most challenged companies we’ve worked with had real revenue, loyal customers, experienced crews, and a strong reputation in their market. From the outside, everything looked fine. Underneath, the same familiar warning signs kept showing up: revenue growing while profit stayed flat, the owner still involved in nearly every major decision, labor costs nobody could quite explain, crews performing inconsistently from job to job, estimates that didn’t reflect what jobs actually cost, financial reports arriving too late to act on, managers held accountable for results they had no real authority over, cash flow swinging unpredictably, and roles and processes that were never clearly defined in the first place. These problems rarely show up alone. A bad estimate turns into a margin problem and project losses. A margin problem turns into a cash-flow problem. Weak reporting means leadership doesn’t catch it until the financial damage is already real. And without a capable leadership team in place, the owner becomes the answer to every question and the fix for every problem. Over time, the business ends up running on effort instead of systems. Our approach starts by understanding how these challenges connect to each other, then figuring out which changes are actually likely to move the needle in a lasting way … in the same way we moved the needle for Pleasant Places Landscape, Blue Star Landscaping, Genesis Landscape Solutions, Sun Country, and Creative Environments.   Clarity comes before transformation You can’t fix a business you can’t see clearly. That’s why we look past the top-line revenue number and into the operational, financial, and organizational factors actually driving performance: profitability by customer, contract, or service line; labor efficiency and crew productivity; how accurate the estimating really is; direct costs and overhead; pricing strategy; cash flow and forecasting; org structure; leadership capacity; roles and accountability; the sales pipeline; operational processes; and how dependent the business is on the owner. We’re not trying to hand leadership another binder of reports. We’re trying to find the small handful of constraints actually driving performance, the levers, so leaders can stop treating symptoms and start fixing what’s underneath them. Pleasant Places: turning rapid growth into stronger profit Pleasant Places was already a real success story by the time the company partnered with us. Founded in 1984, this commercial landscaping company had grown fast, taking annual revenue from roughly $10 million to nearly $18 million in just two years. But that pace of growth had created its own problems. Margins were under pressure, processes and procedures needed real work, accountability was inconsistent from department to department, and the organization simply didn’t have the infrastructure to operate efficiently at its new size. We worked with the Pleasant Places leadership team to strengthen the financial, operational, and organizational foundation underneath all that growth. That meant digging into historical financial trends and building a model to evaluate cost of goods sold, margins, and breakeven performance; putting systems in place to track labor hours and materials against estimates; refining pricing to hit target gross margins; implementing real purchasing controls; identifying gaps in leadership and org structure; clarifying roles, responsibilities, and who reported to whom; supporting a management transition from father to son; establishing real performance metrics; and researching and implementing an ERP system to give the company far better operational visibility. The results speak for themselves. Pleasant Places gained real visibility into projected revenue, gross margins, profitability, and cash flow. Pricing discipline, tighter labor and material cost controls, and real leadership accountability helped push gross margins up from low 20’s to an average of 42%. Revenue grew past $35 million, and the company came out the other side with a stronger leadership structure, clearer expectations, and a healthier culture. The lesson here is simple: growth gets a lot more sustainable when financial discipline, operational systems, leadership accountability, and org structure grow right alongside revenue instead of trailing behind it. Blue Star Landscaping: building profitable growth, and a successful exit Blue Star Landscaping came to us with a different set of problems. The company needed to improve profitability, tighten up its pricing, get real control over labor and material costs, develop its leadership bench, and build a clear plan for growth. The team had solid industry experience, but they needed a more disciplined way to connect strategic growth to financial forecasting, pricing, cost control, and actual profitability. We worked with Blue Star

Read More »

The T-Mobile-Sprint Merger Raises these Important Questions

The T-Mobile-Sprint merger is generating a plethora of headlines. Some think it’s a bad idea. Others believe it will provide certain benefits. Still others don’t see a clear winner. Regardless of where you stand, it does raise a few interesting questions. We all understand what a merger is — the combining of two entities into one. But, there’s a lot more to it than just this simple explanation. The truth is, there are distinct advantages and disadvantages of merging two organizations. Common Merger Disadvantages Let’s begin with one of the most obvious pain points — employee morale. The reason two brands come together is to improve their performance. However, this often means the elimination of duplicate roles. And, rank-and-file employees instinctively know this fact. Another downside to merging is that it can create more debt. Teaming up means taking on the balance sheet obligations, which can easily become problematic. …making changes to your business include the economic and political climate in which you operate. Determine whether tax or trade laws in your region are friendly toward the types of modifications you want to make. You may come to the conclusion that now is a good time to move forward with the desired alterations or you may elect to wait for circumstances to change in your favor. —Bix Fluent.com Then, there’s another intangible — company cultures. One organization might operate with a completely different dynamic than the other. Which might manifest trouble when the two become one entity. Of course, merging means the essential elimination of the top decision maker. Instead, there are at least a few people on either side of the aisle. Biggest Merger Advantages Now, let’s take a look at the upsides of merging. The point of coming together is to improve the performance and ensure a better future for both companies. Here are the top merger advantages: Improved efficiency. We’ve already partially mentioned this but here’s the other side of eliminating redundant positions — increased efficiency. A merger can provide a new environment to improve efficiency on many levels. New territories. When two companies come together, it’s likely that one (or both) parties will benefit from the introduction of new territories. It’s a way to tap into market share without undergoing the growing pains. Cost-effective expansion. Speaking of growing pains, a merge creates an opportunity to expand without all the normal hassles. It allows for the identification of the best assets, which means increased productivity. Multiple growth opportunities. Two previously competing businesses combined as one opens up a number of growth opportunities. Instead of working to beat one another, they now work in unison toward one or more goals. What other consideration would you factor into such a decision? What experiences have you had in this scenario? Please feel free to share your thoughts by leaving a comment! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Read More »

Imagine Selling Your Business…

How Would Your Life Change?

You didn’t start your business just to stay busy—you built it to create freedom, security, and options for yourself and your family. Selling your business can be life-changing, but the real question is whether you’re intentionally building toward that outcome or simply leaving it to chance.

Sign up below for a free consultative session to learn what your business could be worth today and in the future! 

Thank you for your interest in learning what your business is worth. We will be in touch shortly.