When you think about retirement, you would think that it’s time for you to enjoy your life free from work and other things that disabled you from pursuing what you love. However, for some people, retirement is nothing but a milestone and it should be a stepping stone to trying out something new while still earning from the side.
If you are considering starting a post-retirement business, you may be wondering where to get the funds to finance it. Since you are now retired, you don’t have a regular paying job to help you support your new sideline.
Fortunately, there are several ways to finance your post-retirement business and here they are below:
If the business you are pursuing after retirement is something you have done for a while now, you can consider bootstrapping for your business. In bootstrapping, you will be using your own capital to build your business and grow it. This is ideal if you don’t want to go into debt as you work on your business and reduce the risks as well.
The only problem with bootstrapping is the fact you may not have enough funds or capital to use to get new staff or advertise.
If you need to purchase a property, equipment and all the other business essentials for your business, it may be ideal to get a personal loan. If you have a good credit score, you can enjoy affordable payment terms with low interest rates.
However, do your research to find out which banks provide you with the best interest rates.
The government may also be able to help you finance your post-retirement business through their business startup programs.
There are certain schemes which can be used by seniors to open small businesses with the help of government-sponsored or partnered lenders. Check with your government if they do support small business startup ideas like yours.
If you don’t want to use lenders to fund your business, you may want to consider a venture capitalist. Some governments can help you find these investors that can invest funds in your business through loans or equity while others may rely on angel investors.
Angel investors are entrepreneurs who see potential in your ideas and will invest money in exchange of stocks in your company. It is just like the reality program called Shark Tank.
Want people to know your business and get funds at the same time? Crowdfunding is the perfect finance strategy to use.
In crowdfunding, you can propose your business to people who may be interested in seeing your business start and provide you with the funds necessary to make it happen.
To show your appreciation, you can give them gifts or rewards they can use when they check out your business.
Read More: How To Start Your Business Without Funding
You can also use your retirement account to fund your business, but this must be the last resort and I generally will advice against using your nest egg,
If you do plan to use your retirement account, you should speak to the agency handling your retirement account and see how you can withdraw from it and use it for your business. While it does reduce the risks of you being in debt and paying penalties, it will deplete the money you can use for other important things like medical care.
Don’t let your age (it’s just a number!) stop you from pursuing something that you want to try but were unable to do so because of your other responsibilities before you retired. Check what funding options you have available and plan accordingly.
Remember, there will always be risks in building a business, especially at your age. But, if you really love what you are doing, you can grow your business and set you up financially for a long time.
Best things in life are meant to be shared, start spreading MiddleMe around, after all, sharing is caring.