Many people begin retirement with the question: what’s next? That question can plant the idea of starting a second chapter whether it be a new business, a side hustle, a passion project, or a consulting business. The question then becomes, how to get started?
Gabe Nelson, the host of the Solopreneur Money podcast, is here to discuss how you can start a business in retirement. In this episode, you’ll learn tips on how to get started, how to decide what to charge, how long it should take to become profitable, and so much more.
Outline of This Episode
- [1:58] What are some tips for someone that wants to start a business in retirement?
- [5:28] How to keep track of expenses
- [7:00] At what point does the business have to become profitable?
- [11:30] How to move from employee to employer
- [14:00] The kinds of clients that Gabe works with
- [16:42] Gabe never plans on retiring
How to get your retirement business started
You may have been thinking about working for yourself in retirement, but where do you begin? Should you open a business checking account? Set up an LLC? Create a website?
Gabe recommends seeing if you can get clients. Do you have a process for generating revenues? Once you get a few clients in the door and some revenues coming in, then it is important to consider if you actually like what you are doing. Remember, this is your retirement and you should be enjoying it!
How to decide what to charge?
Deciding how much to charge can be a daunting task. Many retirees come from the corporate world, so they think about charging an hourly wage that resembles what they once got paid themselves. However, it is important not to bring that corporate mentality into your new venture.
Running a business costs money and your fees should reflect those expenses. Think about what it takes to run a business. When running a business, there will be additional expenses, like overhead and taxes, which could cost up to 40% of what you make. This is why it is important to carefully consider your expenses before setting your fee structure.
Build a team of experts to help you
As a solo entrepreneur, or solopreneur, you probably won’t have any employees, but that doesn’t mean that you’re all alone, you can ask for help from the experts you know.
It’s important to create a team of professionals to help you with the areas that aren’t in your wheelhouse. After all, this is your retirement and you should enjoy the work you do. Let someone else do the books and the administrative work if you don’t enjoy it.
Your CPA can help you understand which expenses are deductible and you can use apps to help you track these expenses. Your financial planner can help you decide how much you can safely set aside to get this new venture started.
How long should it take to turn a profit?
Being financially independent means that you don’t have to bootstrap your business. However, since it is a business, it should eventually turn a profit. You should give yourself a timeframe for profitability. Aim to turn a profit within 3-5 years. By setting a fixed amount aside, you can give yourself a runway so that your passion project doesn’t run your retirement into the ground.
Listen to this episode to hear how you can make the transition from employee to employer, make money, and still have fun. If you have been contemplating starting a business venture in retirement you won’t want to miss this interview with solopreneur expert, Gabe Nelson.
Resources & People Mentioned
Connect with Gabe Nelson
Connect with Benjamin Brandt
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