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Monthly Archives: September 2016

6 Smart Retirees Business Ideas

Many new business ideas well-suited for retirees harness the power of the internet, as long as you don’t let technology intimidate you.

“Online businesses are truly some of the best types of businesses for people over 50, but they need to get over their fears,” said Diane Eschenbach, owner of startup consultancy firm DE Consultants and author of “How to Quickly Start a Business Online.”

One simple new business option involves researching and compiling information on websites.

“One of my favorite types of online businesses for the ‘post-50 group’ is curation sites,” said Eschenbach.

As people get older, the time invested in activities (such as a new business venture) becomes very important, said Eschenbach. She is a big fan of the idea of retirees learning to use technology because of the time saved by automated programs, but she stresses the importance of choosing a business you enjoy.

“The key to a great retirement is doing what you love and finding a way to monetize it quickly,” said Eschenbach. [See Related Story: New Business Idea? How to Test Before Launching ]

Retirees considering starting businesses should start by thinking about two areas: skills from their previous jobs and life lessons. These experiences make retirees well-positioned to share their knowledge.

“Since they have a lot of life and career experience, a consulting and coaching business suits them well as a new endeavor,” said Dolly Garlo, business coach and president of Thrive!! Inc. By capitalizing on existing knowledge, retirees can spend their time learning the ropes of running a new business.

“Retirees should focus on jobs and business opportunities that leverage the individual’s years of work and life experience, such as consulting, teaching or tutoring,” said Jamie Hopkins, Esq., assistant professor of taxation in the Retirement Income Program at The American College in Bryn Mawr, Pennsylvania, and associate director of the New York Life Center for Retirement Income.

Instead of sharing knowledge through a face-to-face business, retirees may prefer to teach or coach through a freelance writing business. “Writing and blogging can be a way for the retiree to stay engaged in an online or other community, generate some income and leverage their knowledge,” said Hopkins.

As you brainstorm new business ideas, Garlo suggests asking a few key questions. “How much time do you want to spend working? What kind of flexibility do you require? Do you want to work from a fixed location or be able to work virtually? What subject matter in particular excites you?”

Garlo says it’s also important to consider your potential business customers, and if they can afford to pay you. “This will determine whether what you provide becomes a hobby or charitable endeavor, or is an actual business,” she said.

Have you left a successful career after establishing a large network of valuable and experienced business contacts? If so, the main ingredients of your new business idea may be as close as your address book.

“[Retirees] have learned lessons that many business owners won’t learn for another 10 to 20 years,” said Tobe Brockner, author of “Mastermind Group Blueprint: How to Start, Run and Profit from Mastermind Groups” (Aloha Group Publishing, 2013). “This is why starting a mastermind group is a natural fit for retirees.”

Members of mastermind groups meet regularly to collaborate and solve the problems or issues of their members, tapping into the collected experience, skills and knowledge of the group.

“Many [retirees] already have a network that they can tap into to find excellent mastermind group members, and by being the group organizer and facilitator, they can make a nice supplemental income,” said Brockner.

Depending on the size of the area in which they live, Brockner said enterprising retirees can start and facilitate multiple mastermind groups, and charge a premium for the value of being a member.

“Mastermind group facilitators can generate between $1,500 to $3,000 per month per group for just a few hours [of] work,” he said.

Providing services has long been a popular idea for younger, active retirees who want to start their own businesses; however, familiar choices like handyman services, tutoring or pet sitting aren’t the only games in town.

“There are many options for service-based businesses, but one area particularly well-suited for retirees is to provide eldercare services,” said Nancy Collamer, career coach and author of “Second-Act Careers: 50+ Ways to Profit from Your Passions During Semi-Retirement” (Ten Speed Press, 2013).

“Many elderly living on their own need someone to help out with the tasks of daily living: housekeeping, shopping, errands and cooking,” said Collamer. “They also hire people to help out with special projects such as relocating, medical claims assistance and bill paying.”

As the total number of entrepreneurs increases, so does the number of entrepreneurs over the age of 50. Why not start a business catering to them? There is a tremendous opportunity for you to assist new entrepreneurs with building, managing and marketing their businesses, said Collamer. While older entrepreneurs have solid core skills from previous professions, they often fall short on the skills needed to capitalize on their expertise and turn their knowledge and talents into a profitable business.

“So think about how you can apply your skills in a small business environment,” suggested Collamer. “Are you a talented graphic designer? You might be able to design logos, brochures or menus for a new restaurant in town. Do you have strong financial skills? Perhaps you could work as a small business coach or a bookkeeper.”

Few business people have the time and know-how needed to handle all the tasks required to keep a business profitable, Collamer said. And filling this need suits aspiring business owners who are also retirees.

“Most small business people can’t afford full-time staff, so this can be a nice way to earn income on a flexible or part-time basis.”

There are many ways to take advantage of the spreading “active living” philosophy, which is especially popular among Boomers. Who better to help show them the way than a peer with the know-how to stay fit and age gracefully? One of the greatest things about starting a business focused on active living is how creative you can be about what exactly your business looks like.

“The spectrum of involvement is pretty wide,” Jonah Bliss, director of community for electric bicycle company EVELO, said. “[It could be] anything from opening up franchises for electric bike stores to being ambassadors for healthy living brands, or running tours and treks to outdoor locations.”

These types of businesses not only work well as a way to bring in some money after you retire from your career, but they also help others maintain their health as they age. Be creative and use what you know to find your niche in the growing active living marketplace.

5 Business Ideas for Fashion

Putting on a fashion show is no easy feat. Fashion event producers works with designers and models to help put together a show, and may even help coach runway models.

“You would help the designer with runway show casting and have an understanding of how clothes should be portrayed on the body and how the models should carry themselves,” said Kerry Bannigan, founder of Nolcha, a New York-based fashion event production company.

While startup costs are minimal – you won’t need employees or even an office – you will need to do some heavy self-promotion. Relationships and referrals are key for this type of work, Bannigan said. Business cards and a user-friendly website showing an online portfolio are a mus,t as well as a printed portfolio. Networking through industry websites is also essential, she said.

Before you embark on this career, you should understand fashion shows, have the ability to work with the creative-minded people and be flexible enough to deal with diverse personalities, Bannigan said. Income potential is based on the number of clients you have and how big they are.

This business is ideal for someone with a corporate background who wants to make a move into fashion. A fashion business coach helps guide design firms in all aspects of running their business – from growth plans to everyday tasks such as invoice collection and bookkeeping . It also can involve coaching the creative designer on how to perform and interact in different business settings, Bannigan said.

Startup costs for a fashion coaching business are minimal, but earning potential is significant.

“Research consultancy services with established businesses can make six-figure salaries with constant clientele,” Bannigan said.

It might be hard to believe, but influential websites such as the Sartorialist and Racked debuted as small fashion blogs. They’ve since come into their own as industry thought leaders, and they sell lots of advertising.

Not too much investment is needed in a fashion blog – website development and hosting can be quite inexpensive – but it will require lots of legwork. Whether you’re stalking the city streets in search of fashionable photo ops or following the moves of leading designers, you’ll need to be tracking changing trends at every moment.

On the plus side, a fashion blog can be a complement to your existing job, said Angie Wojak, director of career services at the School of Visual Arts.

“You can start a blog on your own while looking for job, and it doesn’t take a big outlay of cash,” Wojak said.

Photo stylists work with photographers to scout shoot locations, get clothing to shoots, buy furniture and accessories and generally make sure the photo shoot goes as planned. It requires a good sense of fashion, an understanding of fashion history, and the smarts to know where to source your products, according to Sara Petitt, coordinator of the fabric styling program at the Fashion Institute of Technology, in New York.

Successful photo stylists can come from any background. They usually make their mark by doing a good job and gaining business through word of mouth. Photo stylists can be paid hourly or by the project.

Do you love to talk your favorite designer brands up to friends and family? Are you always searching for the latest fashion news and sample sales? If so, you might consider starting your own fashion public relations business. Fashion PR is a difficult field to break into, but with the right skill set and connections, you can help designers and other fashion businesses get noticed by the media and fashionistas.

In an article on PR Couture, entrepreneur Jonathan Leger writes that there are several key components to success as a fashion PR professional. You must first be able to create a strong brand for your clients to differentiate them from other designers. You must also know how to work with fashion editors to get magazine placements, and with models and celebrities to get your clients’ work in the public eye. You should also have a keen understanding of media trends and be able to prove the value of your work.

Smart Strategies to Sartup your Dollars

Initial startup costs are some of the biggest expenses a new business owner will have to encounter. Before you turn a profit, there are many parts of the business that need to be covered up front, and entrepreneurs don’t always anticipate some of these expenses.

To reduce your startup costs and stretch your dollars a little farther, follow these tips.

A simple way to save money as a new business owner is to set spending and expense limits. However, a surprising number of business owners don’t have a formal budget, said Carissa Reiniger, founder of small business support community Thank You Small Business.

“There is so much power in knowing what is going on in your business, for better or for worse,” Reiniger told Business News Daily. “Managing the finances of my business is not something I naturally enjoy, so I’ve put rules in place to help me stay on track. I advise setting up a standard time every week or month for reviewing and managing your budget.”

Angie Segal, an ActionCOACH business coach, advised entrepreneurs to factor their own salary into the budget as soon as possible.

“When you don’t pay yourself, you take money out of the business elsewhere to cover your own expenses,” Segal said. “Giving yourself a salary forces you to make everything in your budget work.”

Thatcher Spring, CEO of GearLaunch, said entrepreneurs should always do as much as possible with what they have before they add more fixed costs.

“At my company, we only hire when there is too much for the current staff to reasonably accomplish without additional help,” he said. “I’ve also found that hiring less-experienced, smart, adaptable employees, instead of only those that are senior and highly experienced, can help keep salaries under control.”

When you created your business plan, you might have envisioned all of the latest office equipment, lavish holiday parties and enough staff to take on big projects. However, not all of those business luxuries are guaranteed.

Office Evolution founder and CEO Mark Hemmeter said small business owners can suffer from a lack of flexibility in their grand plans.

“Your ego and vanity can get in the way,” he said. “You want that car or that perfect sign, but it just isn’t a good fit for the core of the business.

Hemmeter recommended looking into short-term solutions, like using shared office spaces and hiring freelance workers, until you can afford to make long-term commitments such as acquiring private office suites and hiring full-time employees.

Spring added that business owners should always plan for every effort to take longer than expected, whether it’s launching a new website, signing up customers, sourcing new products or hiring employees.

“Make sure you always set aggressive goals, but realize that there will be unexpected terrain on the pathway to success,” he said.

Startup costs for a new business add up, but there are tips and tools for finding the best areas to spend the money and those where you can cut back a bit. Spring noted that there are numerous cost-effective, self-service tools available to small business owners who want to save money by taking care of their own branding and website development.

However, it’s wise to be wary of “free” opportunities, warned Raad Mobrem, CEO and co-founder of Lettuce Apps (acquired by Intuit).

“Free tools can be a bad idea — they’re free for a reason,” Mobrem said. “Always pay for the important things, like software. You can ask for discounts with B2B services. People understand that you’re a small business just starting out, and if they offer discounts, you’ll want to work with them in the future.”

That said, spending money on the lowest-priced items can mean getting the lowest quality. As a result, you may have to replace things multiple times, and that can be more expensive than going with a pricier option in the first place.

“It’s a huge mistake to go as cheap as you can,” Hemmeter said. “It doesn’t look very professional.”

One area where you may want to splurge is your company culture, Spring said. You can invest in small items, such as snacks and comfortable work furniture, which don’t necessarily cost a lot but produce meaningful intangible value. “Having a great office environment will improve productivity,” Spring said.

After you follow the initial tips to save money and reduce the startup costs of your new business, it’s just as important to make sure your expenses stay on track as your business grows. Seek financial advice from accountants and fellow small business owners, and then go over your expenses and try to cut back where you can.

“Find an accountant that acts as a business adviser,” Segal suggested. “Look at your profit and loss with him or her every month, and see if anything is creeping up. Be very conscious of your numbers.”

As you adjust your budget each month to save money, you’ll be able to start investing in bigger, better things for your business. Mobrem’s advice is to plan your budget in terms of stages.

The Most Affordable Cities for Startups

For the second year in a row, cities in the South give entrepreneurs the best chances to keep their startup costs low, while big cities remain among the most expensive places to start a new business, new research finds.

The study from SmartAsset revealed that nine of the 10 cheapest cities to start a new business in are in southern states, including three in Tennessee.

To find the cities with the lowest startup costs, SmartAsset collected data on the typical costs of starting and running a business in 80 of the largest cities in the United States. They calculated the total expected startup costs over the first year of operation for a company based on five factors:

  • 1,000 square feet of office space.
  • The cost of gas and electricity for a 1,000-square-foot office.
  • The average cost of filing fees for either incorporation or filing as an LLC.
  • Legal and accounting fees.
  • Payroll costs for five full-time employees, earning the city’s median annual salary.

Topping this year’s rankings of the most affordable cities for startups is Chattanooga, Tennessee. The city is attractive for entrepreneurs looking to save money because of its relatively low costs for office space and employee payroll. The research shows that it would cost $225,442 for a business owner with five employees and a 1,000-square-foot office to run a first-year startup there. That’s up about 2 percent from a year ago when the costs were $221,000.

“If you decide to start a business in the Gig City, you’ll be in good company,” the study’s authors wrote. “Many startups and accelerators operate there, including the Lamp Post Group and Gigtank 365.”

Overall, the 10 most affordable cities to launch a startup in are:

  1. Chattanooga, Tennessee: $225,442
  2. Wichita, Kansas: $232,057
  3. Greensboro, North Carolina: $232,326
  4. Columbia, South Carolina: $232,541
  5. Knoxville, Tennessee: $232,620
  6. Little Rock, Arkansas: $233,877
  7. Memphis, Tennessee: $234,524
  8. Lexington, Kentucky: $234,945
  9. Orlando, Florida: $236,513
  10. Winston-Salem, North Carolina: $237,983

Similar to a year ago, many of the 10 most expensive locations for startups are larger cities, including three in northern California: San Jose, San Francisco and Oakland.

For the second year in a row, San Jose and San Francisco are ranked as the two  costliest cities to launch a business in. San Jose, where costs rose 3.9 percent from 2015, has the most expensive payroll and legal and accounting costs of the 10 cities with the highest startup costs, while San Francisco had the third highest office space and legal and accounting costs and second highest payroll expenses.

This year’s 10 cities with the highest startup costs are:

  1. San Jose, California: $439,831
  2. San Francisco, California: $422,455
  3. Washington D.C.: $395,017
  4. New York, New York: $384,389
  5. Boston, Massachusetts: $378,436
  6. Bridgeport, Connecticut: $356,853
  7. Oakland, California: $346,241
  8. Seattle, Washington: $345,615
  9. Trenton, New Jersey: $336,611
  10. Newark, New Jersey: $328,396

While they are considerably more expensive, entrepreneurs shouldn’t necessarily rule out starting a new business in any of these cities.

“After all, many of the startups that have become household names are headquartered there,” the researchers wrote. “There’s also something to be said for the talent pools in these areas.”