When most people consider their retirement, they will usually conjure up images of days mowing the lawn, before firing up the grill with a beer mid-afternoon, spending long trips away during off-peak hours and grabbing some valuable family time. In reality however, many are bored and restless when they retire after so many years of working, and they see their retirement not as a chance to relax and enjoy life, but to get their teeth stuck into something new. Should you fall into this category of retirees looking to use their 401K or savings for a business investment rather than a vacation, here are are a few key considerations you must first make.
Do You Have The Skills?
So let’s say that you have the time on your hands, you have a lifetime of experience, you likely have the necessary funds which is required for investment, but before you get started you must be brutally honest with yourself. Simply understanding how the business world works is not always enough to actually make a success of it and you must remember that times move quickly. Be truthful with yourself and think honestly whether or not you have the necessary skills to turn your business idea into a success.
Do You Have The Energy?
Restlessness after finishing your working life is perfectly normal and it makes good sense to want a project to work on. There is however, a grand difference between having the energy to put into a side project, and the energy levels which you’ll need to launch your own company. Ask any successful business person and they will tell you that those early years were the most difficult, working hard, learning, making mistakes and ultimately finding their way in this new world. Even some younger people do not have what it takes to make a successful business, so you must address whether or not you still have that spark, and the right amount of energy which a nascent business demands.
There will always be some amount of risk attached to launching a business from scratch, and you need to assess how much risk you can, or are willing to take. Even though you may be in a better position than many regarding getting your start-up off the ground, based on your lack of time and financial constraints, you will still be risking a great deal of what you have built over your lifetime. Businesses fail every single day and you must ensure that you have calculated your financial liability should the worst happen.
Dedication of Time
A trap many fall into during their retirement is thinking that the grass is greener on the other side of the road, and invariably it is not. With this in mind, you may find that the extra work and the beginning of a project will ease your restlessness, and it probably will, but you must be prepared to feel bad that you are not clocking up some more minutes with the grandchildren. If you do wish to start a business in retirement, consider the amount of time you’ll need to dedicate, and work out how this fits in with the benefits which retirement has given you.
There is nothing to say that you won’t be successful, but you should think long and hard before you decide to dust off your desk and launch a new business after you have retired.