Guest blog post by Tina Martin

Introduction To Starting a Home-Based Business for Seniors

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Many seniors choose to continue working during their retirement years because they need additional income, want to pursue an interest or simply enjoy working. Whatever your reason is, starting your own home-based business can be a good alternative to getting a job. This introduction to starting a home-based business for seniors will cover some of the basic information you need to begin.

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Choosing an Idea

One of the first steps in the process is to choose an idea for your business. As a senior, you have the advantage of having decades' worth of knowledge and experience to draw on. You don't have to choose a business idea that is directly related to your previous career, but it is wise to focus on ideas that allow you to leverage your knowledge and skills, whether those were acquired through employment or personal interest. Start by brainstorming some options and then narrow down your list by doing some research. The plan you settle on should be one where there is a demand for the product or service, and you can bring something unique to the business that sets you apart from the competition.

Going Back to School

If you’re going to start a new business, you can boost your business acumen by earning a business degree. By earning a business degree, you’ll learn about essentials like marketing, accounting, and business management. Many online degrees allow you to complete your coursework and graduate faster than a traditional institution so you won’t have to wait years to start your new business. 

Structuring Your Business

Once you have your business idea, you need to decide on a business structure. The most common structures for home-based businesses are sole proprietorship’s and limited liability companies. A sole proprietorship is essentially an extension of the business owner. You don't need to take any specific actions to form a sole proprietorship. Your business and your personal income are treated as the same for tax purposes and you are personally liable for any debts incurred by the business. Setting your business up as a limited liability company makes your business a separate entity from yourself. Your assets and the business's assets are treated as separate for purposes of liability. 

Funding Your Business

Some home-based businesses can be relatively inexpensive to start, but you will still need some start-up funds. If you have a substantial amount of savings, bootstrapping may be a good option. However, you will need to consider that most new businesses take two to three years to start generating profits. Therefore, if you dip into your savings or retirement accounts, you need to make sure you have enough left over to live on. Additionally, you should consider the tax implications and penalties that may be involved with withdrawing money from certain types of retirement accounts.

Starting a home-based business can be a good way for seniors to leverage their accumulated savings, knowledge and experience to generate additional income or pursue an interest in retirement. This guide can help you set out on the path to becoming a successful business owner.

Once again, thank you to Tina Martin for this lovely article on how to start your own home based business.

We hope you found this article as valuable as we have!