Retirement is supposed to be a time to relax and enjoy the fruits of your labor, but this doesn’t always sit well with people who are used to being highly productive. In the Philippines, it’s not unusual for retirees to take their retirement funds and use them to start their own businesses to keep themselves active.
Thankfully, starting your own business is easier than it’s ever been, especially if you have sizable savings after retirement. But even if you only have a modest pension, setting up your own venture is still very much possible.
Whether you’re starting a business to stave off boredom or to reach your dreams during this next chapter of your life, following these valuable tips will help you succeed, stay happy, and maximize your retirement funds:
1. Do Something You’ll Enjoy
If you’ve spent all your life helping other people with their goals, it’s time you start thinking about yourself. As a retiree, you should prioritize business ideas that bring you joy and fulfillment, even if they’re not necessarily the most profitable. Generally speaking, you want to start a business that helps you fulfill long-held needs for happiness and self-actualization. That way, your retirement can be more meaningful, not merely something you do for extra income.
2. Make Sure You’ll Get Paid
While you do want to be able to do things you enjoy, you also need to pay attention to your business’s financial viability. If you decide to go with an e-commerce business, for example, pick an online payment processing company that focuses on the needs of smaller operations. This way, you can better focus on the other things that matter for your new venture.
Also, take some time to pick an internet payment solution that makes sense for your business model and target market. Choosing modern online payment solutions like Maya Checkout, Invoice Payments, and Payment Links will also help boost your cash flow by allowing potential buyers to have their online payment processed however they prefer.
3. Tap into Your Existing Networks
Get in touch with your old friends and colleagues for support, especially if you think they can benefit from the products and services you want to provide. If you’ve managed your relationships well, you should be able to build an early presence for your business through valuable word-of-mouth, allowing you to expand your customer base without having to spend a lot on marketing.
4. Start Small
As tempting as it might be to pump all your retirement funds into your passion project, it’s still important to test the waters first before diving straight in. The line separating a functional, passion-driven business and an endless money sink can be blurred, so you may want to consider launching as a part-time venture or a small-scale operation.
Keeping your business small initially allows you to test the waters, refine your operations, and gradually scale up as you gain confidence and experience. Keeping your business small at first should also help limit your losses in case you want to shut it down.
5. Pivot to Something More Sustainable
If you don’t get a good grip on them, passion projects can sometimes leave you disliking the very things you once loved. And as a retiree, you probably don’t want to get bogged down in things that aren’t enjoyable or sustainable at this stage of your life. Given that, it’s a good idea to be open to downsizing or pivoting your business idea even before you start.
6. Prioritize Your Health and Financial Security
If you’re at the typical retirement age, you’re probably not as well equipped as you once were to handle the copious amounts of stress that comes with running a business. For your passion project to be sustainable, you’ll need to take good care of your health and your long-term financial stability. If you think your business idea will give you unmanageable amounts of stress or cause you to lose financial stability, consider doing something else.
7. Keep Learning
Finally, the world of business is constantly evolving and what you learned during your career may not necessarily be relevant in the present day. Before you start, update your skills by attending relevant seminars and workshops, no matter if you’re planning to set up a restaurant, a bookshop, a car detailing shop, or something else. By keeping your knowledge and skills up-to-date, you’ll avoid wasting your time and limited retirement funds on obsolete or irrelevant business strategies, ensuring the success and sustainability of your business venture.
Unfortunately, it’s not uncommon for retirees to lose their financial stability in the pursuit of their passions. However, if you know what to expect, your future venture may be the beginning of the best years of your life. By avoiding over-exuberance, being smart about your priorities, and being careful with your savings, you can avoid the financial traps that commonly happen to unprepared retirees, ensuring that the next chapter of your life is one filled with continued growth, happiness, and prosperity.
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This article is contributed by an expert guest author.