Using Retirement To Construct A Booming Business

Creating a business sounds like it should happen at the start of a career, not the end, but statistics suggest otherwise. According to a study reported in Forbes, up to 24% of new entrepreneurs are aged 55-64, taking new entrepreneurs right into retirement age. Starting a new business is challenging, but those living through frugal means it’s a little bit easier. Where a business really shows its benefits is the joy and purpose it can bring in later life, as some of the world’s retiree entrepreneurs have shown.

Using Retirement To Construct A Booming Business
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Providing purpose to others

Retirees, and those working later into life, have long shown that they have a vested interest in the world around them. This has been shown by the demographics of charitable giving; according to USA Today, 42% of charitable donations are given by retirees, as are 45% of volunteer hours. A business in old age provides a platform to help the world around you. This is an approach lauded by investor Erik Gordon who has suggested that philanthropy should be a central part of business planning, and especially during the latter stages of a career. The benefits are tangible; according to the same USA Today report, 76% of people feel better helping others out rather than spending on themselves.

Engaging the brain

Many people will find their career stressful, putting undue strain on the brain and the nervous system to traverse the ups and downs of working life. The direct opposite can be true in retirement, where inactivity can lead to brain decline. This is a conclusion mooted by Alzheimer’s news site Being Patient, who reported that one British study saw retirement accelerating brain decay. A business keeps the brain active, but with retirement in tow, you can take it at your own pace. IBM is a wonderful example of reinvigorating a career after retirement. Charles Ranlett Flint, then 61, innovated IBM to become more resilient in 1924, and his career was prolonged until he turned 80 as a result. As for IBM – the rest is history, with the company pulling over US$70bn in revenue every year.

Creating a legacy

If you lead a frugal life, it’s likely that your children – or whoever is on the will – will be left with a decent nest egg and principles to help them enjoy their own lives. A business will extend this and, more importantly, leave a legacy. In America, Gail Dunn is likely one of the best examples of this. A profile conducted by Business Insider noted how, at 64, Gail established the Women’s Automotive Connection just a few weeks into retirement. Aside from being a successful business, this helped to establish a legacy where women could feel reliably informed when approaching mechanics, with Gail disheartened by a career of watching women be swindled.

Your cognitive health, helping those around you, and your legacy. Starting a business has many benefits, but starting one after retirement has its own unique pull. If you have a big idea, why not try to make it a reality?