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Starting a side hustle in retirement is exciting but potentially risky. Learn how to protect your finances and leverage your experience. [[{“value”:”
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So-called “second acts” are common and popular in America. Why? Because not only are people living longer, healthier lives, but starting a business in retirement is now seen as a realistic and exciting option in life. Almost 70% of all entrepreneurs now are between 40 and 60 years old.
Consider these successful late-life entrepreneurs:
Colonel Harlan Sanders franchised his first Kentucky Fried Chicken restaurant at age 62.Leo Goodwin started Geico Insurance at age 50.Gert Boyle began what would become billion-dollar Columbia Sportswear when she was 42.
So, yes, it’s quite possible to do, but, that said, it’s vital to approach any late-life business venture — even a side hustle — with care. While it’s exciting to apply one’s life experiences in a new way, it’s also a financial and emotional commitment that is often easier for the younger than the older. For retirees, the stakes are higher; there’s less time to recover from potential missteps and money setbacks.
With that caveat out of the way, and with the right strategies in place, it’s possible to minimize the risks and maximize rewards. Here’s how.
4 rules for boomerpreneur side hustle success
Keep these guidelines in mind if you plan to start a new business.
Rule 1. Protect the nest egg
One crucial piece of advice: Do not dip into your retirement savings to fund your new venture. Your retirement funds should be considered sacrosanct. They’re there to ensure your future financial security, not to finance a potentially risky side hustle.
You need to consider other funding options like small business loans, crowdfunding, or even partnerships. Again, keep your retirement funds untouched to safeguard your future.
This is Rule No. 1 for a reason.
Rule 2. Leverage your experience and network
You undoubtedly have decades of experience and a wealth of knowledge that can give you a leg up. Use it. Milk it. It’s your unreasonable edge, your unfair advantage. Your experience, skills, and vast network is your superpower. Take advantage of it.
How, you ask?
Start by tapping into your network. Reach out to former colleagues, business contacts, and friends who might offer support, advice, or even become your first customers. Similarly, if you’re great at marketing, that should be your focus. That is your “Genius Zone” where you should play, entrepreneurially speaking, the most.
Rule 3. Start small and test
You do not want to put all of your eggs in one basket. Too risky. Instead, consider a side hustle on the smaller side before going all in. Whether it’s launching a part-time consultancy or testing your product in a limited market, starting small reduces risk while giving you a feel for the entrepreneurial world. And right now, at this stage of your life, minimizing risk should be a top priority.
Rule 4. Focus on your passions
One of the best parts about starting a side hustle in retirement is the freedom to pursue what you truly love. Now, if your passion is 17th-century Flemish architecture, your passion likely will not find much of a market. Let’s keep this reasonable. Your passion has to fit a market need to be financially viable.
If you have a lifelong hobby, a skill you’ve honed over the years, or a new interest, that passion can be a powerful motivator and a key to success. When you love what you’re doing, it doesn’t feel like work.
Carol Garner’s inspirational example
Take my old pal Carol Garner for example. At 52, Garner found herself divorced and over $1 million in debt. Rather than freeze up and recede as so many others might, Garner chased her problems. She embraced a new adventure.
Here’s how: On a friend’s suggestion, Garner adopted a bulldog she named Zelda. She then entered Zelda into a local Christmas card contest on a whim, dressed Zelda as Santa, and Zelda won. How could she not?
And Garner won something even better: A vision for a new life, via a new business.
In 1997, the idea of dressing up pets and sharing their photos wasn’t a thing. But Garner’s creativity and willingness to try something different paid off. Zelda in costumes quickly became a thriving multimillion-dollar business that spanned greeting cards, books, clothing, jewelry, and more.
Garner’s advice to those considering entrepreneurship in their later years? “A great entrepreneur has to be daring, different, and smart.”
So that’s the deal: Retirement doesn’t have to mean the end of your business journey — in fact, it could be just the beginning. By being cautious with your finances, leveraging your experience, and following your passions, you can create a side hustle that not only brings in some income but also adds joy and fulfillment to your life.
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