Retirement can be the ideal time to take the leap into starting a business. The options are limitless. Many retirees also enjoy selling their handcrafted items. Avenues for sales include retail shops, craft fairs, flea markets, your own website, and websites such as Etsy that cater for such sales.

The preparation needed to start and run a business varies depending on the nature of the business. However, here are some fundamental pointers that apply to any business:

• Speak with appropriate advisors about the impact of added income. Get a clear idea of how much income you may add without negatively affecting taxes and other retirement income and/or benefits. Also discuss the pros and cons of going above that level. Discuss the kinds of things you may and may not deduct as business expenses, as this can affect your finances as well as inform your image of running a business.

• Research any licenses or permits that might be required. This includes business licenses, permits to sell certain products, and registration to collect taxes. Ensure you understand what kind of insurance might be required. Don’t assume your small or part-time business will be exempt or can operate under the radar. Understanding the elements of overhead cost and the processes you are required to manage—such as sending collected taxes to the appropriate entity—will help you avoid learning things the hard way.

• Tap into support that can inform and guide your success. This includes groups offered through your local chambers of commerce, professional associations, and myriad other business groups. Helpful services are available through municipal, provincial/state, or federal organizations.

Things to Watch Out for When Seeking Opportunities

When looking for a way to launch a business, beware of offers that claim you will make hundreds of dollars an hour, etc. These rarely, if ever, live up to the hype and might even generate serious financial and other problems. If it sounds too good to be true, or like easy money, something is probably suspect about it.

Beware of multilevel marketing (MLM) businesses as well. MLM is also known as pyramid selling, network marketing, and referral marketing. As a guideline, don’t enter into a business in which you can only succeed if you recruit others to enter into the same business. If you cannot enjoy at least moderate success by selling the products alone, the business is questionable.

Also exercise caution when jobs or businesses require an upfront investment and/or require you to purchase a certain amount of inventory monthly, quarterly, etc. Although many of these organizations are legitimate and offer terrific ways to operate a small business, it’s vital to go into such ventures fully informed. It’s okay to consider certain franchise opportunities, especially if the franchiser’s outlets, products, or services are well-known and trusted. Long-established and reputable franchisers provide good opportunities because franchising is basically the licensing and support of business models built upon pre-existing and successful formulas.

Whether you start your own fully independent business or join an organization, look for business ventures that allow you to start small and grow, as this is the most realistic way to build a sustainable business.

Self-Employment

Self-employment includes working as a contractor.

Goals: 

• Receive professional advice and guidance on how income and business expenses will affect taxes and finances in general.   By:_________
• If applicable: Set business income maximum or range.  By: _________
• Schedule time in calendar devoted to researching and/or preparing to launch business. By:_________
• Land first contract or launch business. By: _________

Additional:

• Identify and contact support and vendor resources. By:  _________
• Required licenses, permits, insurance, etc., ready.   By:  _________
• Marketing materials ready (website, brochure, resume, etc.)  By: _________
• Marketing plan ready. By: _________
• Sales skills ready.  By: _________

EXAMPLE

Action Items: 

Find out if I’ll have to charge tax on the quilts I sell. Before the fair

____________________________ _____________