Turning your passion into a business in retirement
Perhaps you have a passion that you’d like to turn into a business during retirement. Here are some key things to consider.
Your passion becomes your product. Your passion may be photography, painting, or another pursuit that was always for fun. Be aware that you may come to look at your “passion” differently when it becomes your work, especially if there is a phase when things do not go especially well. The keys are to be honest with yourself about the potential for your business and to work equally hard at staying motivated.
Know the risks and challenges. Your business idea may be brilliant. But it is also risky – so protect your retirement savings by keeping your start-up costs to a minimum and avoiding heavy debt. For example, don’t lease office space or hire employees until you absolutely have to. Early expenses eat into profits and make it difficult for a new business to survive.
Test the market. If your venture includes a new or different product or service, test the market before you make any rash decisions. Start with the most basic version of your idea and sell it economically – perhaps online – and gauge customer feedback to decide if your business venture makes financial sense.
Keep it simple. Finance your business with money you can afford to lose. If you find yourself tempted to tap into your retirement account to fund your business, take it as a warning that you’re probably about to get into something you’re not financially prepared for.
Creating a retirement business from your passion could be the most satisfying life decision you have ever made. Before diving in, make sure you have all the information – on taxation, licensing and all the other vital details you must master to run a successful business.
February 14, 2017
This column, published by Investors Group Financial Services Inc. (in Québec – a Financial Services Firm), and Investors Group Securities Inc. (in Québec, a firm in Financial Planning) presents general information only and is not a solicitation to buy or sell investments. Contact your own advisor for specific advice about your circumstances. For more information on this topic please contact an Investors Group Consultant.