Three quick tips for starting-up in retirement

Peter Ibbetson
'Having that pool of surplus cash is helpful, but if you have assets that can be put to use, don’t risk them,' warns Journolink's Peter Ibbetson Credit: Journolink

Launching a business at any age is a challenge, but being an older entrepreneur brings its own particular set of hurdles.

Don’t risk your assets

Following a 40-year corporate career, Peter Ibbetson retired, but he wanted to keep his brain active, so at 58, he founded PR website, Journolink, allocating £20,000 of his own money to launch it.

He thinks that available personal funds are one of the biggest business benefits of retirement. “Having that pool of surplus cash is helpful, but if you have assets that can be put to use – a house, for example – don’t risk them,” he warns. “Being a later-year entrepreneur does not give you the opportunity to rebuild if things go wrong.”

While founders should avoid being too conservative with cash flow (you must invest to grow), they need to know where to draw the line. “My wife had the cheque book and the impassioned level head, which was good discipline,” says Mr Ibbetson. “As a result, I made every penny work and ensured that we didn’t put our future at risk.”

An age-old issue

Fifty-eight year old Daniel Bruce founded specialist dog product business, Peggie’s Pet Shop, after retirement, but people did not take his idea seriously, thinking that it was just a hobby. “Family and friends thought that I was having a meltdown, while investors were hesitant to spend on someone who no longer needed to work,” he explains.

Others could not understand why someone his age did not know how to build a website.

“It’s so frustrating when you’re judged by your age,” says Mr Bruce. “I assumed that people would appreciate what my wealth of experience could bring, but I was wrong.”

For those worried about age being a barrier, he says to simply put it out of your mind: “​If your biggest problem is that you think that you’re too old, then you don’t have any problems – instead, focus on real issues, such as funding and scaling up.”

It’s never too late to learn

Shashi Aggarwal retired in 2008, aged 57. Her son, Sanjay, came up with the idea to sell her home spice blends online, so she and her husband launched Spice Kitchen.

But the couple were out of touch with the digital world. “We struggled with printing, writing and saving documents, and how to use the back-end systems of eBay and Amazon,” explains the co-founder, who suggests leaning on those close to you. The couple asked friends and family to teach them one-on-one.

Legacy planning is also important, says the retiree, who will leave Spice Kitchen to her son when it does come time to call it a day. “All three of us are directors and we encourage him gradually to take the lead on non-operational tasks, such as customer enquiries, new product development and marketing.”

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