The Right Idea
Coming up with the perfect idea for your retirement business is the first step. There are many things to consider. One of the most important is whether the business is something that you would be committed to for the long term. Staying committed to a new business requires that it is an area in which you have a keen interest and something that can be successful to reward you for your efforts.
In brainstorming an idea for the retirement business, you don’t have to follow all of the rules that a startup that is seeking investment has to follow. You may choose to try to build an investable business but you may not have to. Investors are interested in national and international businesses that have large available markets and can achieve revenue in excess of $10 million dollars. Your interests are likely different. It may be good enough to generate extra income that permits you to enhance your lifestyle or meet other cash flow needs. This difference allows you to consider businesses whose customers might be local or in a very specific niche.
You could consider your hobbies and interests. For example, if you like cooking, maybe a catering business might be appropriate. Or maybe you might be interested in assisting others making businesses such as home care for the elderly attractive. If you are interested and crafts you could sell the results of your work. or if your interest is in gardening you could sell cut flowers to local restaurants. you could also explore franchising opportunities. The possibilities are endless.
Another key way to think of an idea is to identify a problem or as the business community would call it a “pain point”. Often, you will notice something that could be done better, or even something in your daily life that you wish you had available.
Consulting is another classic small business idea. watch for changes in an area in which you have expertise. If you do something about health insurance, the recent changes to the health care laws could enable you to become a consultant to local small businesses who need advice on how to proceed.
Observing successful businesses in another location could be another way to brainstorm your retirement business nBringing a successful business into a new area has produced some outstanding successes. Starbucks actually transported the Italian coffee shop to Seattle and opened their first store. The rest is history.
Changing demographics also presents opportunities. The growing number of seniors will create new service and product opportunities that have yet to be tried.
Always observing thinking and staying attuned to new opportunities can bring you great results.
Next, you have to evaluate the idea. Does the idea for the retirement business fit with your interests, capabilities, and time available? This can often require some soul searching.
And the most important, will the idea have customer and can the product or service be delivered profitably. It is fairly easy to determine the profitability of a product or service. One simply has to subtract the costs to deliver from the selling price. There needs to be enough left over to pay for operating the business hopefully with some left over.
The more difficult and fundamentally more important question to answer is will customers buy the product or service. It is worthwhile to ask many questions about whether the product or service meets the needs of the target customer, but the key to making the determination is to meet with potential customers and ask them. Be sure and check out our ebook on evaluating retirement business idea.
There is more information available from BoomerBiz that can help you with this important first step.