7 tips for retirement entrepreneurs |
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Meanwhile, Strauss urges retirees to consider a fourth type of small business: a franchise.
Franchises are businesses in which you pay a fee to gain the right to sell or distribute the product of a larger company. Franchises offer several advantages over starting a business from scratch. For example, they often already have a known brand and a marketing hook. In addition, you'll receive invaluable help from the franchisor about how to run your business.
There are franchises available in all types of industries, including food, automotive, retail, travel and more. Some are affordable, some require huge investments.
"A franchise makes sense if it's a proven franchise with a clear-cut return," Strauss says. "Not all franchises are created equal. Talk to other franchisees. Make sure it's legit, that you get a good location and that they have a good system."
6. Get help before you need it
There's no reason to go it alone. There are numerous resources for would-be entrepreneurs, including coaches like Williams and Stone.
Francis noted that when she started her business, she relied on SCORE, which is run in conjunction with the U.S. Small Business Administration. SCORE calls itself "Counselors to America's Small Business" and provides free advice to would-be entrepreneurs.
SCORE counselors are volunteers with business experience, and are matched to clients with similar business plans.
"There are literally hundreds around the country," Francis says of SCORE volunteers. "When I started my business it was unbelievably helpful to me."
7. Ask yourself this question
Businesses owners of every age speak about how much fun they've had, how much money they've made and how rewarding it is. However, many entrepreneurs also warn that running your own business has significant drawbacks. For example, you'll work a lot but have very little security, at least initially.
Before you start a business in retirement, ask yourself this question:
Are you really an entrepreneur?
"If you haven't been an entrepreneur your entire life, you have to think whether you are an entrepreneur," Strauss says. "At the tail-end of your career, I would say there's a test you can take. If the idea of losing your job and starting a business gets you excited or happy, then you're an entrepreneur. If it worries you more than it excites you, maybe you're not an entrepreneur.
"You need to give yourself that same quiz when you're retiring and thinking about running a business. Think about that carefully."
However, running a business at any time in your life can be exhilarating and rewarding.
"I love entrepreneurs because they're passionate people," Strauss says. "It's not about business. It's about passion, doing something they love every day. So the upside is fantastic."
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