Many people are opting to develop new businesses after they enter retirement. If lounging on a golf course isn’t your ideal retirement, or if you just want to make some extra money, there are options for your personal encore. Hanging up a shingle and joining the workforce as your own boss with your own goals may be just the ticket.

Establish Your Plan

One of the first things you should do is decide on a business plan. Develop your focus, and do a careful evaluation of what your goals are. As explained by US News & World Report, some businesses will function more as hobbies and less as money makers. Take a hard look at your idea and decide how much need there is for what you plan to offer, whether you have the knowledge and skill required to be successful, and think about how much time you can dedicate to your project. 

As a retiree, Forbes suggests that you could already have business contacts and the special skills needed to contribute to your success. If you depend on Social Security for income, note that there are limitations on how much you can earn. If you would be better off keeping your venture as a hobby, plan accordingly.

Lay The Legal Groundwork

A home-based business doesn’t need to be complicated, but there are a few things you should do to ensure you’re on the right side of the tracks, legally speaking. Some experts explain that this is especially easy these days, since much of your paperwork is readily available via the internet. If you plan to work as a sole proprietor, file a Schedule C with a Form 1040. However if you are going to function as a corporation, partnership or limited liability company, you will need to file a separate tax return for your business. 

Some locations require a business license, and some businesses require specialized licensing, such as real estate or child care. You may need to develop contracts, releases or other written agreements for your clientele. Additionally, some areas have zoning or homeowner association restrictions for businesses. There are many resources online that can help you navigate these issues.

Depending on your situation, you may wish to discuss the ins and outs with your financial or legal advisor. If you have a friend involved with the kind of business you are considering, talk with that person. It’s an opportunity to receive input from someone already involved and glean valuable insights.

Your Workspace

Once you establish your direction and legal groundwork, you need an actual place to work. Whether you operate from home, in an outbuilding, or lease an office space, you’ll want to first establish what sort of setup is best for you. 

Some experts suggest creating a checklist of necessities for setting up your new business. From there you can decide if you already have the space, or if you need to rent it. You should also decide what equipment you need to add to your workplace. These decisions will directly impact your budget and startup costs as well, so do some thorough investigating before jumping in.

Embrace Technological Tools

In this day and age, technology provides a tremendous number of resources for developing businesses. Not only can you research your legal paperwork from the comfort of your home office, you can generate your own marketing. Social media is now a vital business marketing platform, so plan to incorporate Facebook, Twitter, and Instagram in your outreach. 

While this may seem overwhelming if you aren’t familiar with the websites, or if you haven’t engaged them with marketing in mind, you can find ways to make these tools work for you. For instance, you can use Instagram most effectively by using hashtags with your brand name and studying your existing and potential customers’ behaviors. 

Knowing your audience can lead to Instagram marketing success, and it doesn’t mean spending all day surfing social media. There are studies out there illustrating the best times of day to update Instagram, providing the biggest bang for your buck.

Rethinking Retirement

Whether you’re itching to create that dream business you never had the opportunity to pursue, or you just want a little extra income, starting a small business during retirement may be the answer. If you plan well, create a great workspace, and use the tools available to you from day one, retirement doesn’t mean the end of your working career, it could be your professional encore.

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