They say that 60 is the new 40. More Australians than ever find themselves able to retire before their 60th birthday, and the average retirement age in Australia is now just 56. With more people living into their late 80s than ever before, retirement today is a very different prospect to years gone by, when we could expect to live “three score years and 10” and we retired at 65.
For those who are able to retire in their late 50s and have some money set by to invest, retirement is an opportunity to start a new phase in life. 5.8 percent of Australian adults are actively engaged in starting a new business – that’s the sixth highest start up rate out of almost 200 countries in the world.
Here, we will look at the practicalities of launching an online business in retirement. We will focus on two types of business that stem from two of the most popular pastime in Australia.
Why launch your own business?
By the time we reach our mid-50s, most of us feel a little beyond the phase of being beholden to anyone or of having to meet the demands of a boss looking over our shoulder – especially when that boss might be young enough to be our son or daughter! When you are self-employed, you have only yourself to satisfy, and you can plan your working day around other commitments, whether it is walking the dog or picking up grandchildren from school.
Most retirement businesses are in a niche that the entrepreneur is passionate about, so spending time on it is something he or she would do for pleasure anyway. Turning that passion into a money-spinner to bring in some extra funds for later years can only be a good idea.
The casino market – worth a gamble?
It’s never the best idea to generalize, but Australians spend more money on gambling than any other nationality. And over-55s spend more than any other generation. It’s fair, then, to say that this is a sector about which our demographic of Australian early retirees is likely to have some interest.
You might look at the popularity and growth of online casinos like the ones showcased at casinoaus.net and contemplate starting one of your own. That’s a great idea conceptually. After all, there is truth in the old joke that the only surefire way to make money at a casino is by buying it. However, you’ll need some significant finance behind you and will also have to be ready to jump a few regulatory hurdles along the way.
Industry experts estimate a startup cost approaching $2 million when you consider the licensing costs, cash in the bank needs to cover early payouts, and so on. Before you run for the hills in terror, these costs can be reduced by using a white-label casino setup. It’s a little like running a franchise business, as all the basics are already in place in terms of the gaming platform, the license, which will typically be in Curacao, the games, the payment system, and technical support. If you love Casablanca and have always fancied the idea of being Rick Blaine, this could be the most practical way of making it happen. The business is also going to be quite straightforward to divest later down the line.
Buying and selling the things you love
Setting up as a specialist trader in the things that interest you, whether it is old books or classic car spares, has always been a popular retirement hobby. But before the internet came along, it was hard work to really make any money out of it.
All that has changed over the past decade or two, as the world has become a smaller place. For example, Max Duncombe, a classic car enthusiast in Brisbane, has been quietly buying up “new old stock” components from sales since the 1980s for his own project vehicles and selling off what he doesn’t need. He retired from his day job 20 years ago and has focused on his spare business full-time ever since, both sourcing parts and supplying customers all over the world. The only investment he has had to make is an extra storage shed for his inventory, as it had taken over his garage to the extent that his own classic Jaguar was buried under piles of filters, gaskets, and assorted other components.
Today, the internet makes buying any sort of collectibles far easier, especially for Australians, for whom anything outside their own city means hours on a plane. The real trick to doing a business out of this sort of hobby is to have the willpower to sell the things that interest you as well as to buy them!