If you’re like most Americans who want to retire somewhere around 65, you’re going to be looking for ways of making extra money to supplement your retirement. Needing more money in your retired years isn’t something new, Marc Linsky says, and starting a home-based business is an extremely popular idea. Many of today’s workers are putting off retirement, Marc adds. It doesn’t have to be this way. Many of his clients have come up with interesting and innovative ways of earning extra money in their golden years with their own at-home business. In this article, Marc Linksy discusses the three critical steps you need to do first before planning to start your own business after retirement.
First, Marc Linksy says, take an inventory of your projected retirement income. How much do you need in additional income? Write down all your sources of income and your expenses. After you have a clear goal in mind, determine how much income you’ll need to sustain your expected lifestyle. “Then I’d recommend adding at least another 20%,” Marc says, “as it’s always good to have a buffer.”
Then write down all your projected expenses. Marc Linksy says to be sure to include extra for things like medical premiums and prescriptions. “I’d recommend being generous with expenses like these because if you’re like most retirees, you’ll need additional healthcare down the road,” he adds.
Next, Marc Linsky suggests figuring out what you enjoy doing in your spare time. “Too many people do work they don’t really like,” he says. Marc suggests taking a deep look at things you love to do. “Go ahead and make a list,” he says. “Write down everything you enjoy doing from general things like helping people with their finances to fixing things.” Marc Linsky says a list like this will be the springboard from which profitable ideas for an enjoyable retirement will come. “This is especially important if you are thinking about starting your own business,” he adds, “as it will help increase the quality of your life in your later years.”
The final thing Marc Linsky recommends is to see if any of the things you enjoy doing are monetizable. “In other words,” he says, “is there enough market demand that you can make money from it?” For example, Marc Linsky says, let’s say you enjoy walking dogs. If you live in a big city, there might be plenty of need for this type of service in your area, he says. But if you live in a rural area, it wouldn’t be such a great idea.
As an example, Marc Linksy explains, “I had a client once who loved to sew in her spare time. She decided to start a business sewing custom oversized bibs for seniors in nursing homes.” It was a great idea, he adds, and she did exceptional work, except unfortunately there’s no market for that he added. If she had done some research ahead of time, she would have found that out. This client ended up spending thousands for a website, business cards, licensing, and other incidentals before she realized the idea itself wasn’t viable.
Too often, people will forget that you need to look at the demand side to see if there’s a market for what you enjoy, Marc says. Some places to research demand for products and services would be sites like Amazon, specialized group forums online, and Google’s keyword planner. Proper research is the first step to see if people are searching for what you’re considering. “This is just the beginning of several steps I recommend,” Marc Linsky said. “A little bit of research at this early stage will go a long way towards preserving your investment for your future.”