How To Start A Business After Retirement

It takes enormous time and effort to build a business that creates a consistent stream of cash flows for your life. However, with some passion and directed effort, this is possible.

Amit Sethi
October 11, 2023
Starting A Business After Retirement

Starting A Business After Retirement

Most of us seek to be independent and financially free, which means not working as an employee and earning enough to not worry about regular expenses in life. Business could be an option. This makes you independent and free to do anything you like.


We may not have had the opportunity to work on this idea when we were running the family, children’s education, regular expenses, home & car expenses, etc., but some of us can think of doing it post-retirement. So, let’s explore the idea of starting a business after retirement.

How To Start A Business?

The first question that needs to be answered is what business you want to start. A business requires the transaction of services or products in exchange for money. What product or service you are going to offer? To decide this, look at your interest and passion. In old age, interest and passion will be more important in building a business than the strength of your mind and body.

You may also think of partnering with someone with similar interests. However, partnering is a two-way street. Unless you know the person and he or she has the same values, this may not survive.

The last important thing is location. It is always easier to start a business in your area, i.e., the state or city where you have spent a significant number of years. You may also explore the option to sell your product or services through online platforms. However, before starting an online business, you need proper training for it.

Funding Options

How will you fund your business? This is where you have to look for means to cover the set-up and operational costs for the initial few years. Getting a loan for a business should not be very difficult if you have a sound business plan and can convince the lenders. You can also try loans against collaterals such as fixed deposits, assets, etc.

The other option would be to take money from the excess retirement corpus left in hand after meeting your retirement needs.

Things To Keep In Mind

Firstly, business is full of challenges. We tend to hear success stories but not the struggles of entrepreneurs in their initial years. Most of the businesses go through tough times before they get stable. Be ready for such happenings.

Additionally, do not expect things to be like your past job. In a job, you have a support system, and mistakes are managed effectively by the system. In the case of business, mistakes cost you money.

Finally, if you do not have a significant sum of money but want to start a business, look for service types of business where your skill comes in handy. This will be a natural extension of your working life with freedom as the added benefit.

Despite all sorts of challenges and hurdles, if you successfully set up a business after retirement, you can leave a big legacy for many generations.

The author is an independent financial journalist

Related Articles