Most people lose their source of income upon retiring. Seniors are left with limited finances, which often proves insufficient given their longer lifespans. Starting a business can provide a stable source of income. However, not all businesses are guaranteed to make money. Focus on businesses with low risk and moderate to high profits to fortify your retirement funds and get a little extra spending money.
Partner with Established Brands
Privately-owned businesses took massive hits last 2020. Most small businesses don’t have enough savings to cover two to three non-performing months, making them vulnerable to economic downturns. Established brands don’t have the same problems, and most of them already have captured markets that regularly cater to them.
Partnering with these brands through a franchise will give your business a higher chance of succeeding. Franchises in food are especially profitable. Sandwich and chicken franchises often have high returns on investment, with most owners earning back their investment in two to four years. Of course, location and over-saturation are key issues, but most brands will assist you with research and feasibility studies. Getting a franchise can go for a low as $20,000 to $30,000 per location. However, you’ll also need to account for overheads, as well as a slow start on the first six months.
With a modern greenhouse and the right crops, you can earn big money with minimal effort. If you belong in one of the 32 states that allow medical marijuana, growing them can be quite profitable. A 10-feet by 20-feet greenhouse can hold up to 15 of these plants and yields average out at 1 ounce per plant. At $300 an ounce, you can earn $4,500 every two to three months. If you’re in it for the long run, mushrooms can be very profitable. Oyster and shiitake mushrooms can take 6 years to grow fully.
However, the yield for the average greenhouse can go up to $30,000 to $40,000 worth of mushrooms. Building a 10-feet bf 20-feet polycarbonate greenhouse will cost around $6,000 to $8,000. Polycarbonate greenhouses are more efficient at making full use of the sun than traditional greenhouses, and they are significantly less expensive. Of course, you’ll need to add a bit of security to your property to protect your valuable crops.
Run an Airbnb
With your children on their own (hopefully), you can make use of the empty rooms in your house by renting them out. Airbnb setups can be very lucrative, especially if your house is near a tourist spot or two. Just do a bit of cleaning if you want to retain a home-like feel, or get a full remodel for a more corporate or professional appearance.
Of course, you’ll also need to provide decent internet and cable. Most of your tenants will want to use their phones, so you’ll also need strong WiFi signals or maybe an additional booster if you’re renting out property outside the main house. Offer a few extras like ride services, daily meals, grocery runs. Most tenants will gladly shell out money for convenience, especially if you seem amicable.
Bake for Profit
2020 was the year of bakers, proving that almost anyone can bake given the right circumstances. Baking cakes and cupcakes is fairly easy. All you need are the right recipes, an oven, and a few baking accessories. You can take cupcakes to a farmer’s market or sell them directly to friends and neighbors. Learn a few decorating skills, and you should be able to cater to parties and, hopefully, corporate events.
Baking involves minimal risk. You can gauge demand easily, and you won’t be baking large orders without prior payment. It takes a bit of skill and the right recipes, but practice and research should cover it.
Craft beer is becoming quite popular in the US. If you don’t have big breweries in your area, it might be profitable to make your own. Brewing equipment for home breweries is easy to source, and hops from all over the world are available in specialty stores and online. Experiment on a few brews and note down the good ones. You can sell your brews through a farmer’s market or to local pubs.
Craft beer often starts as a novelty, but you can get loyal patrons if you discover the right recipes. A small automated brewing machine costs around $1,000, but you can expand your operation with larger setups if the demand is high.
Don’t rely on your 401k and Social Security. You can keep the money flowing with the right business ideas and make your retirement more comfortable and enjoyable.