The ongoing Olympics were an eye opener in more ways than one. It was a chance for China to showcase to the world its growing prosperity, its sporting talent and economic ability. It showed us America?s continuing grit within the sporting world, while providing yet another chance to laugh at their expense with both the men?s and women?s relay teams dropping the batons. Jamaica showed it continues to outrun the sophisticated nations by sheer determination, and India, though not befitting our population, did after many a year emerge with a gold medal, and 2 bronze ones to add to its tally. However, the keener followers of this sporting extravaganza would have noted an ex-Chinese gymnast who had the honour of lighting the Olympic torch. The man in contention is Li Ning, a retired Chinese gymnast whose most famous achievement pre-retirement was the winning of 6 Olympic medals in the 1984 Los Angeles Olympics. Now, the interesting point to be noted in Li Nings career is that he achieved far more success, wealth and fame, post-retirement, when he became an entrepreneur, who started the famous Li Ning sports apparels company, which now competes with the likes of Nike and Adidas for market space in China. Now that is an eye opener for all those who feel that life post-retirement is about lazing, saving precious resources, telling stories, living a budgeted life and at the most, starting a small restaurant, which you have no idea how to run.
You see things; and you say ?Why?? But I dream things that never were; and I say ?Why not?? says, George Bernard Shaw. And, why not? After all, most people have been held back by fear, inhibitions, self-doubt, and clung onto securities all their lives. Yes, a good steady job for many years, a retirement party, and a watch gifted with your initials on the back. And then it?s all over. Before one realises it, their working days are up, and what you leave behind barely classifies as a legacy.
True, starting a business after having worked for years is not the easiest thing in the world, at least not as easy as when you?re just starting out in life and can afford a setback or two. Larry Page and Sergey Brin, founders of Google did so in their budding youth, so did Mark Zuckerberg, the founder of Facebook. However, on the other end of the spectrum lies Colonel Harland Sanders, who was 62 when he sold his first Kentucky Fried Chicken franchise in 1952. By the time he sold his franchise operations in 1964, Kentucky Fried Chicken was a household name.
Similarly, entrepreneurs like Harish C Pruthi, KR Malhotra, Yash and Mohini Sethi, RD Kapur and RK Khanna, all set up businesses after they retired. This just goes to show that age is not as crucial as some claim it is and experience comes with its own set of advantages as well.
While we all cannot hope to create something sensational in our golden years, we can definitely take hope that life is far from over. In fact some of the most exciting years have just begun. We all have big dreams post-retirement, few ever see them materialise, medical obligations, children?s marriages, household expenses, inflation, all invariably end up squashing those dreams of spending a week in the Bahamas, or taking a luxury cruise in the Atlantic. A business, an idea, some belief, especially in making the hardest first step, can make all these responsibilities easy to bear, without having to shoot down your dreams before they see the light of day.
Why start now?
Retirement can lessen the fear of failure that comes with launching a venture. Some people cling to the security of working for someone else most of their lives, repressing their inner entrepreneur until retirement, says Stan Spector, author of ?The Baby Boomer?s Official Guide to Retirement Income?. He feels that some people have really had a desire for entrepreneurship their whole life. The money and benefits were so good, it wasn?t worth taking a risk. Once retired, they might find that risk to be worth it. Some other interesting points made by small-business and startup consultancies are, ?People post-retirement or after having worked for many years tend to be more financially stable than someone who?s 20 or 30, and they have knowledge and passion for what they do or what they would like to do.?
Successful entrepreneurs who have been down this road before have all come to learn valuable lessons. One should not expect returns in their pockets for six months and maybe even longer in some cases. To survive and sustain one should therefore have money readily available via a line of credit or some other source, which can supplement your savings for over a year. While this position is risky and hence a natural deterrent instilling fear in most, cutting corners is far worse, for it can jeopardise your entire plan. Under-financing is one of the prime reasons while some business ideas fail to launch.
The growth of the Indian economy is creating a wide range of opportunities, especially in the services sector. It?s not just trendy dot-coms and information technology boutiques that everyone is gushing about but consultancy?s, placement services, etc, with startup costs of as low as Rs 50,000, is all that?s needed. Principals and teachers can always choose to start or run a nursery post-retirement. It is a low-cost business, which if it does well, can always expand. It keeps you occupied and one is bound to feel younger than ever. Similarly, a sportsman can start a coaching academy, and this list only goes on.
One should ideally start planning to take this plunge a few years before retirement if possible. This gives ample time to save up the necessary resources, build the much-needed contacts through the networking you have done in your life span, and preparing for the bumpy start ahead as best as you can. Why would you want to go through this is a question for which everyone has their own reasons. However, a few reasons as to why should one think along these lines are listed below.
Financial Security and freedom: Most people look for financial security as they approach retirement. Starting their own enterprise gives them the kind of security that a good job with a huge corporation does not guarantee anymore. Changing attitudes and situations in our society are also motivating people to turn into entrepreneurs after retirement. Unlike in the past, when there was the understanding that children would take care of their parents , the elderly increasingly find that they have to fend for themselves. Even in cases where the safety net of elder care exists, many prefer to maintain their financial independence. Today a pension fund is not enough.
Flexibility: After having worked for many hours a day, you?re entire working life, people like to spend more time with their loved ones-post retirement. Being one?s own boss helps older entrepreneurs make time for their family and keeps the money coming in as well.
Old is gold: Some things, like wine, get better with age. Older entrepreneurs have experience, that precious learning, which only comes with age. Many have good intra-personal skills and a flair for management. Since they?ve already been there, done that, they are able to handle most situations with ease. And with technology being such an enabler, they can get a lot done without having to physically run around.
Do something you love: Starting a business close to retirement entails taking risks, both financial and otherwise. It is important that you pursue an interest or an activity where you have some expertise as your business, so that it serves the purpose utilising free time in an enjoyable way.
Starting the business: While making your business plan ask yourself pertinent questions as to who is your target market, do they need this service/product, how can I get this to them and is the risk-return ration beneficial to you. Leverage your connections – friends, family and acquaintances to help with your first orders
Health is important: As one grows older, health problems could prove to be the limiting factor in your ability to run a business. But this can be easily addressed with a flexible time schedule and someone younger to manage the business in your absence. Also, getting you and your family a good health insurance cover and plan for a long terms is a necessary step to make, especially as with age, the premium on a new policy only gets higher as well as medical insurance becomes harder to secure. Also, there is no better way to keep fit than by doing something you love, keeping your mind active and having something that maybe you and your spouse can do together, to earn money, keep engaged and remain healthy.
Tips for starting a business
? Find the market gap in the business you know. Sometimes the best way to determine what business to go into is to identify a need that isn?t being served by the business you came from. Starting a consultancy for that industry is not a bad idea either. While identifying business opportunities for your post-retirement venture, shortlist opportunities that can help you exploit your past experience. The main reason is that by doing this you reduce the risk of failure associated with a venture in a new area
? Consider turning your hobby into a business. An ex-banker in Savannah,
Georgia, turned his love of local history into a tour business. You could do the same thing with gardening (be a consultant), baking (open a local cookie-making business) and so on.
The added bonus is that if it?s a hobby, it won?t seem like work. Also, after identifying a business idea, studying the market carefully will always be beneficial, especially as you may find a niche or area within that field that is yet to be covered.
? Investigate franchising. If you can find a home-based franchise that interests you, the cost will be relatively low, and you get pre-built systems and support materials so you don?t have to reinvent the wheel. This also reduces the risk of failure, and you get startup training as well as ongoing assistance that you wouldn?t get as a solo operator.
? Keep upfront expenses to a minimum. Starting small ensures that you can preserve most of your savings, avoid capital-raising efforts and associated debt, and back out gracefully if the business stumbles or the life of an entrepreneur doesn?t suit you as well as you expected.
? Avoid a 40-hour work week to start. Don?t get yourself into a situation that requires your full-time attention from day one. You?re not 20 years old anymore, and you might not have either the energy or the desire to work 40, 50 or 60 hours a week. Get your feet wet with a part-time commitment. You always have the option to add hours if business is good and you?re having fun.