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:
Bootstrapping
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.
Personal loans
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.
Government Funding
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.
Read More: What Governments are Doing to Help Out Freelancers and Self-employed Impacted by COVID-19
Venture Capital
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.
Crowdfunding
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
Retirement Account
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.
Conclusion
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.
For more on retirement, here are some interesting articles you need to catch up with:
10 Jobs for Retirees Working from Home
A Word Of Advice: I Hate Retirement
Guest Post: RETIREMENT TIME
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MiddleMe 
very helpful info here Kally,
🙂
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Thank you very much.
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🙂
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Very thoughtful with a pleasant authentic style.
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Thank you so much, Michael. Welcome to MiddleMe.
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Interesting post, thanks for sharing your ideas.
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Thank you so much!
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This post is the need of the times.
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Thank you, Sonali. Check this post: https://middleme.net/2020/08/19/what-is-affiliate-marketing-and-how-to-get-started/
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Okay, I’ll be sure to check out the post.
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Intriguing post ,thanks for sharing 🌼
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Thank you so much and welcome to MiddleMe!
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Thanks! I wanna retirement now, I’m 37 Lol.
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I want to retire too! So I can go diving!
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Thats good!
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Kally my friend (Now you tell me; I just turned 76)
Just kidding with you. GREAT Post.
God hired me and I work full time for Him.
Incredible retirement plan!
God Be with you,
Patrick
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Patrick, your retirement plan is the best. You are accumulating wealth in your soul and in your heart!
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I am so happy for the help that I got from you,it is great to listen to your advice on how to open you business,I will work hard to open mine in the min time.
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You’re most welcome!
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Thanks for the advice.
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You’re most welcome.
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Thank you Kally, very helpful and encouraging
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You’re most welcome, Paola.
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Thank you for yet another well-written, interesting and informative post Kally.
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Thank you and appreciate your comment.
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This is interesting and good advice. My dream is having a bed and breakfast when I am retired so I can still meet people from everywhere and enjoy hospitality work, which I always loved. I am thinking of retiring next year . We just need to find the right place to do it.
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That’s a wonderful idea, Ute. Thankfully, you haven’t done it sooner or else you will be impacted by the pandemic. Will you be doing it in your country or somewhere else?
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In England definitely , hopefully in the South. Yes you are right with the pandemic, Kally. I would just use it as extra income while enjoying retirement.
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Ah.. please do keep me updated on that B&B. Who knows, I may become one of your guests.
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Thanks for all the good advice, Kally! As you know, there are two positive trends in society, namely, people are living much longer, and are staying healthier and more vital much later in life.
Consequently, though, that means retirement planning is much more crucial now than it was even forty years ago.
When our generation’s time comes, retirement age likely will be 75 or even 80. Even so, most of us will have a couple decades ahead of us at that point. Not bragging or tempting Fate; just a realistic assessment.
With your advice in hand, though, we’ll make those decades good ones.
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That is so true. I don’t know if I can ever retire and do nothing. I’m such a workaholic! I probably will be bored and start a new business or a website or something.
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Exactly, Kally! When I retire, I almost certainly will do more than just look for reasons to complain about things not being the way they used to be (though there probably will be some of that, truth be told).
Even if no financial need makes it necessary, I still will be involved in some kind of enterprise, as I don’t think I’ll be able to deal with having no interaction. Especially not after partaking of workplace vitality for sixty years by that point.
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Same here. One of the comments here by Ute is that she looks forward to set up her own Bed & Breakfast when she retires. I think that is a grand idea. For me, if I were to set up businesses, it will probably be a bookshop or a dive centre, neither will make much profits. I think I better off volunteering at animal shelters.
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It’s funny, Kally, how retirement turns things upside-down.
Now, when we’re young, if we have to choose, Lucrative usually beats out Enjoyable. Sometimes it’s neither, sometimes it’s both, but if we must make a decision…
However, part of planning for retirement means Lucrative no longer is a factor. If something’s enjoyable, who cares if it pays only peanuts? Plan things well, and Lucrative suddenly becomes the biggest non-factor of all. Now that’s freedom.
By the way, I love your idea of a bookshop. Who cares if nothing sells? I’m having far too much fun stocking the shelves and doing a little reading. OK, a lot of reading.
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That’s the whole time. I get to read and read with a purpose!
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Thank you so much for sharing such a useful information. I will definitely share this with others.
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Thank you so much!
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Thanks for all the good advice, Kally!
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You’re welcome, Jason!
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Great content! Thanks for sharing these amazing pieces of advice!
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Thank you so much! Appreciate your comment.
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So good. In the end life is about being happy and doing what you want to do and money shouldn’t be the reason not to pursue that!
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Absolutely! Thank you, Violet!
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Well said, life is all about being happy.
Check out my blog and please drop nice comments
https://tipsonfinance.com
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Thank you so much and welcome to MiddleMe!
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Thank you so much for sharing this out!
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Thank you for sharing this out!
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I want to do crowdfunding for my business…
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Best of Luck, Vivek!
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This is a great article!
Touching on your note about SBA/Government loans, Senior entrepreneurs are more likely to be approved for their loan applications as well according to an article on SBA.gov.
There is no substitute for life experience, so loan officers often look more favorably on applicants as a result.
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Thank you very much, Daniel. Hope you are having a nice weekend.
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Very interesting, good job and thanks for sharing such a good information. You’re doing a great job, keep it up.
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Thank you so much. Always appreciate your encouraging and positive comment. Have a wonderful day!
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Worth Sharing, Your points and ideas really inspire us. Planning makes everything perfect.Thank you for sharing.
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Thank you so much for letting me know! Appreciate your visit and come back soon. Take care.
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