Too Young to Retire? Consider Going into Business

Sharing house as a senior

Are you becoming bored but still have something to give? Or perhaps your invested capital is not earning enough ongoing income?

As we all know semi or full retirement is expensive and requires careful thought and planning. Banks, of course, are the easiest avenue to invest your hard-earned capital in, but with today’s low-interest rates, returns are fairly low and will not keep up with rising prices and living costs, so you start to eat into your capital reserve – which is not good!

Viable Investment Alternatives

Lady typing on a laptop

As a viable alternative, over 50s and retirees look towards investing some of their capital into small businesses, that can be partially or totally operated and managed by themselves.

As a general rule of thumb, small owner-operator businesses can expect to earn 30% to 70% pa from their business investment on their invested funds, but needless to say, every potential business buyer should seek professional advice before making any decision to invest.

Ask Yourself These Questions

There are a variety of business opportunities available but an over 50’s person or retiree should always live by the following rule:

  • Can I step into this business if need be?
  • Can I operate the business as good as or better than the current owner?

If the answers are NO – then walk away and look for something else.

Purchasing a business can be a difficult task so ask for assistance and advice. Once you purchase your business, it’s just like another investment. You have to watch over it, manage or co-manage it, keep records, and actively seek to improve it.

What’s that old saying “there are no free lunches you know” but if you want to earn 30% pa or more on your funds then consider calling me for a confidential and free no-obligation chat.

New businesses come onto the market on a regular basis, if it’s not there today, don’t worry it might be there next week or next month. Time can be on your side and consider all options.

Business opportunities can start from $80,000 – maybe you could form a partnership thereby sharing the
management responsibilities. Fully managed businesses are usually available from $550,000.

This article was contributed by Gary Johnston, Owner / Principal of Johnston Business Sales
e: . Ex-Chairman of the REIQ Business Brokers Chapter of QLD, past speaker and trainer for the REIQ and the Office of Fair Trading QLD. Past Principal of Associated Business Sales and National Business Sales – Bundall. Gary has 25 years of industry experience plus a further 15 years of financial industry experience.

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