4. Evaluate health and lifestyle
Before starting a new business, be realistic about the level of physical and mental energy you are willing or able to pour into your work. Some businesses can be run comfortably from your deck with a laptop computer and a cold beverage at your elbow. Others require significant physical labor -- such as owning a bakery, restaurant or bed and breakfast.
"I think there are certain things you don't want to do that require a great deal of physical energy, although I know some people in their 50s or 60s who are in great shape," says Howard Stone, the CEO of 2 Young 2 Retire Associates who is based in Palm Beach Gardens, Fla.
"But in general, this age group wants to settle into one or two locations. This isn't typically a stage in life where people want to be road warriors and get on planes all the time and go to meetings."
Also, remember that a new business may cut into all those long lunches and tee times you dreamed about before retirement. Williams recently had a client who expected to earn $100,000 in a new business while only working 20 hours a week.
"I told him I didn't see him making that kind of money in 20 hours a week," Williams says. "He either had to cut the money back or increase the hours. Maybe the second year, he could make that kind of money."
Williams suggests following your passions, but also matching them to your desired lifestyle.
"If you want to go to Europe for three months of the year, then you need to have the right sort of business," he says. "You can do it, but you have to think about it on the front end. You have to say, 'I'm going to work nine months a year and during those nine months I'm only going to work 20 hours a week.' And that affects your type of business."
5. Think 'inside' the box
Retirees can run any type of business just as successfully as young whippersnappers. However, Williams says older entrepreneurs who come to his firm often express interest in one of three types of businesses.The first is service businesses.
"One of my clients started a QuickBooks accounting software consulting company," Williams says. "She's in her 50s. She charges $85 an hour and works from home."
Secondly, older entrepreneurs often want to start businesses that are Web-based, he says.
"I have a client who loves to trout fish and realized a lot of other people did, too," Williams says. "He wrote a 120-page book on how to trout fish and he sells it on a Web site."
Finally, many older entrepreneurs look to consulting. Williams warns, though, that a fair number of people who come in saying they want to be consultants are actually using code for "I can't find a job at age 50."
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"That's not enough to make you successful," he says. "In consulting, we really try to help people dig to find that really special group of knowledge they have."