We recently compiled a report on the 17 Home Businesses Retirees Can Start For Supplemental Income and in this article we will look at the best business idea.
Retirees Who Started Successful Businesses
Starting a business as a retiree is challenging, however, more and more people are stepping into entrepreneurship after retirement to make extra income. Previously on the best small business ideas for senior citizens, we reported that people between the ages of 55 and 64 made up 22.8% of the entrepreneurs in the United States. Moreover, the number of people over 60 is expected to double by 2050 from 2015, meaning more people in this age bracket are likely to become entrepreneurs.
Ananas Anam, a recycling business, upcycles pineapple leaves to make sustainable vegan textiles including Pinatex and Pinayarn. The company was founded by Dr Carmen Hijosa in 2013 at the age of 61. She also publishes a monthly newsletter covering news and opportunities for impact entrepreneurs. Another aspiring entrepreneur, Jim Butenschoen, works in the beauty industry. He spent 24 years working in the corporate sector before he decided to run his own business. He opened his beauty academy, Career Academy of Hair Design, at age 57. He set up 5 campuses across Northwest Arkansas and the River Valley. These schools help people develop skills, knowledge, and expertise to establish a career in the cosmetology industry.
Now that we have studied some entrepreneurs who retired after serving their workplace for a good amount of time, let’s take a look at some entrepreneurs who retired early to enjoy their hobbies freely. On June 16, Business Insider uncovered the story of Amy Porterfield, a 47-year-old entrepreneur, who started her social media consultancy at 31. She worked a 9 to 5 job as a content developer for Tony Robbins for almost 7 years before she realized she wanted to have the freedom to work as she pleased. She made $1 million in revenue in her third year of business and, in 2023, her company’s revenue reached $20 million.
On May 29, Business Insider quoted the story of Jean Kang, a former employee at Meta, Linkedin, Intuit, Figma, and Pinterest. For the past two years, she has been working at Figma as a strategic program manager making almost $300,000 a year. While working in big tech had been her dream for long, she eventually got tired of the hustle culture. In February this year, she decided to quit her job and pursue her entrepreneurial journey. She became a content creator and full-time career coach at the age of 31. She is expected to exceed six figures in earnings by the end of 2024.
How to Set up a Business from Home as a Retiree
Setting up a side business may be challenging for a retired individual. Starting a consultancy business is one of the best home businesses retirees can start for supplemental income. According to Mordor Intelligence, the consultancy industry is expected to grow to $444.72 billion by 2029 at a compound annual growth rate (CAGR) of 4.81%. As a retiree, access to resources may be difficult, therefore considering buying a franchise may be one of the best options. Transworld Business Advisors is a consultancy franchise that has sold more than 15,000 franchise units so far. To become a part of the franchise, budding entrepreneurs must have a net worth of $150,000. The minimum cash required to start a franchise is $100,000 with a franchise fee of $65,000.
Tutoring is another suitable business idea for retirees. Club Z! is a tutoring franchise that offers online and in-home tutoring to writers, readers, college students, and pre-k students. Every franchise has an average enrollment of 46 students per month and almost 400 locations. According to data by Top Franchise, franchisees must have a net worth of at least $100,000 and may have to invest $35,000 to start the franchise. Also, franchisees must pay a fee of almost $20,000 to $35,000 and have at least $40,000 in liquid cash. You can also take a look at the most profitable businesses to start from home in 2024.
Sit Back and Enjoy Your Retirement Using Dividend Earnings
Starting a business may not be everyone’s cup of tea. Instead, retirees may also consider investing in dividend stocks. Amancio Ortega Gaona is an investor with a net worth of $110.3 billion, as of July 30. Based in Spain, he is one of the richest people in the world and is best known as the owner of the fashion giant Zara. He owns 60% of Inditex, home to 8 brands and 7,500 stores worldwide, and makes almost $400 million in dividends every year. His dividends are primarily invested in real estate in Spain, the United Kingdom, and the United States.
Some of the best dividend stocks for passive income include The Coca-Cola Company (NYSE:KO). Warren Buffett, chairman and CEO of Berkshire Hathaway, invested $1.3 billion in The Coca-Cola Company (NYSE:KO) in 1994. Today, he owns almost 400 million shares of KO worth $24.7 billion. In 1994, Warren Buffet received $75 million in cash dividends from Coca-Cola. Fast forward to 2023, he made almost $736 million and is on track to receive $776 million in 2024, a yield of nearly 59.7% from his original investment of $1.3 billion.
The Coca-Cola Company (NYSE:KO) is not only a dividend payer, but also a dividend grower. The company has grown its dividends by 3.65% over the past 5 years and has a payout ratio of 68.32%. The company has grown its dividends consistently for 61 years and paid out $8 billion in dividends in 2023. With almost 4.3 billion shares outstanding and a dividend at $1.94 per share, the company is expected to pay $8.4 billion in dividends in 2024. As of July 29, the stock has a forward dividend yield of 1.98%.
Now that we have studied some successful business owners, let’s take a look at the 17 home businesses retirees can start for supplemental income. You can also read our piece on the most profitable small business ideas to start in 2024.
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Our Methodology
To gather a list of the 17 home businesses retirees can start for supplemental income, we consulted threads on Reddit and over 10 rankings and reports on the internet. We picked the business ideas that appeared in 50% of our sources and then ranked them.
The Best Home Business Retirees Can Start For Supplemental Income
1. Asset Utilization
Utilizing your assets is one of the best ideas for retirees looking for supplemental income. Retirees can utilize their assets to either invest in property or stocks or become dividend investors. Blue chip stocks like The Coca-Cola Company (NYSE:KO) offer generous dividends to their investors. The company has grown its dividend by almost 3.7% over the past 5 years, has a healthy payout ratio of 68.3%, and paid out almost $8 billion in dividends in 2023. Warren Buffet is one of the greatest dividend investors who made $736 billion in dividends for the year ended 2023. Amancio Ortega Gaona, a dividend investor who owns 60% of Inditex, approximately makes $400 million in dividends every year. On the other hand, if retirees own some property they may consider renting it for business or commercial use or they may sell it to invest the cash elsewhere.
Curious to explore other business ideas? Check out our report on the 17 Home Businesses Retirees Can Start For Supplemental Income.
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