We recently put together a report on “17 Home-Based Businesses Retirees Can Start to Earn Extra Income” and in this article we’ll be looking at the best business ideas.
Retirees who have started successful businesses
Starting a business as a retiree can be tough, but more and more people are turning to it to make extra income after retirement. As we previously shared about the best small business ideas for seniors, 22.8% of entrepreneurs in the U.S. are people between the ages of 55 and 64. What’s more, the number of people over 60 is expected to double from 2015 to 2050, potentially creating more entrepreneurs in this age group.
Recycling business Ananas Anam upcycles pineapple leaves to make sustainable vegan textiles such as Pinatex and Pinayarn. The company was founded in 2013 by Dr. Carmen Hijosa, 61. She also publishes a monthly newsletter featuring news and opportunities for influential entrepreneurs. Another aspiring entrepreneur, Jim Butenschoen, works in the beauty industry. He worked in the corporate sector for 24 years before deciding to start his own business. At the age of 57, he opened a beauty academy, Career Academy of Hair Design. He has established five campuses in Northwest Arkansas and the River Valley. These schools help people gain the skills, knowledge and expertise to establish a career in the beauty industry.
Now that we’ve looked at entrepreneurs who retire after long years in the workplace, let’s look at entrepreneurs who retire early to have the freedom to pursue their hobbies. On June 16, Business Insider reported the story of Amy Porterfield, a 47-year-old entrepreneur who launched a social media consultancy at age 31. She worked a 9-to-5 job as a content developer for Tony Robbins for nearly seven years, but realized she wanted the freedom to work the way she wanted. She made $1 million in revenue in the third year of her business, and the company’s revenue is expected to reach $20 million in 2023.
On May 29, Business Insider quoted Jean Kang, a former employee of Meta, Linkedin, Intuit, Figma, and Pinterest. She has been working as a strategic program manager at Figma for the past two years, earning about $300,000 per year. Working for a major technology company was a long-time dream, but she eventually grew tired of the hustle and bustle culture. In February of this year, she decided to quit her job and pursue her entrepreneurial path. She became a content creator and full-time career coach at the age of 31. Her income is expected to exceed six figures by the end of 2024.
The story continues
How to start a business from home as a retiree
Starting a side hustle can be difficult for retirees. Starting a consultancy is one of the best home-based businesses that retirees can start to earn extra income. According to Mordor Intelligence, the consulting industry is expected to grow to $444.72 billion by 2029, with a compound annual growth rate (CAGR) of 4.81%. Accessing resources can be difficult for retirees, so considering buying a franchise may be one of the best options. Transworld Business Advisors is a consulting franchise that has sold over 15,000 franchise units to date. To join this franchise, budding entrepreneurs need a net worth of $150,000. The minimum cash required to start a franchise is $100,000, and the franchise fee is $65,000.
Tutoring is also a good business idea for retirees. Club Z! is a tutoring franchise that offers online and in-home tutoring for writers, readers, college students, and kindergarten students. Each franchise has an average of 46 registered students per month and has about 400 locations. According to data from Top Franchise, you will need at least $100,000 net worth to start a franchise and may need an investment of $35,000. You will also need to pay about $20,000 to $35,000 in fees and have at least $40,000 in liquid capital to start a franchise. Also see the most profitable businesses to start from home in 2024.
Enjoy a relaxed retirement lifestyle with dividend income
Starting a business may not be what everyone wants to do. Instead, retirees can 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 fashion giant Zara. He owns 60% of Inditex, which has eight brands and 7,500 stores worldwide, and earns almost $400 million in dividends every year. His dividends are mainly invested in real estate in Spain, the UK and the US.
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 nearly 400 million shares of KO stock, valued at $24.7 billion. In 1994, Warren Buffett received $75 million in cash dividends from Coca-Cola. As of 2023, he has earned about $736 million and is on track to receive $776 million in 2024. This represents a return of about 59.7% on his initial investment of $1.3 billion.
Coca-Cola (NYSE:KO) is not only a dividend payer, but also a dividend grower. The company has increased its dividend by 3.65% over the past five years, giving it a dividend payout ratio of 68.32%. The company has consistently increased its dividend for 61 years, and paid out $8 billion in dividends in 2023. With approximately 4.3 billion shares outstanding, and a dividend per share of $1.94, the company is expected to pay $8.4 billion in dividends in 2024. As of July 29, the stock has a dividend yield of 1.98%.
Now that you’ve studied successful business owners, let’s take a look at these 17 home-based businesses that retirees can start to earn extra income. You might also want to read our article on the most profitable small business ideas to start in 2024.
The best home-based businesses retirees can start to make extra income
An elderly couple with a laptop in their garden, illustrating how the company helps its customers make the best retirement and tax-deferred investment decisions.
Our Methodology
To compile a list of 17 home-based businesses that retirees can start to earn extra income, we consulted Reddit threads and over 10 rankings and reports from around the internet. We selected and ranked the business ideas that appeared in 50% of the sources.
The best home-based businesses retirees can start to make extra income
1. Asset Utilization
Leveraging assets is one of the best ideas for retirees looking for supplemental income. Retirees can leverage their assets to invest in real estate or stocks or become dividend investors. Blue chip stocks such as The Coca-Cola Company (NYSE:KO) offer investors generous dividends. The company has increased its dividend by about 3.7% over the past five years, has a healthy dividend payout ratio of 68.3%, and paid out about $8 billion in dividends in 2023. Warren Buffett is one of the greatest dividend investors who has earned $736 billion in dividends by the end of 2023. Dividend investor Amancio Ortega Gaona, who owns 60% of Inditex, earns about $400 million in dividends annually. On the other hand, if retirees own real estate, they may consider renting it out for business or commercial purposes or sell it and invest the cash elsewhere.
Want more business ideas? Check out our report on 17 Home-Based Businesses Retirees Can Start to Earn Extra Income.
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Disclosures: None. This article originally appeared on Insider Monkey.
