Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

August 21, 2018

Key Considerations If You Want to Start a Business During Retirement

By Achim Neumann

When most people consider their retirement, they will usually conjure up images of days mowing the lawn, before firing up the grill with a beer mid-afternoon, spending long trips away during off-peak hours and grabbing some valuable family time. In reality however, many are bored and restless when they retire after so many years of working, and they see their retirement not as a chance to relax and enjoy life, but to get their teeth stuck into something new. Should you fall into this category of retirees looking to use their 401K or savings for a business investment rather than a vacation, here are are a few key considerations you must first make.

Do You Have The Skills?

So let’s say that you have the time on your hands, you have a lifetime of experience, you likely have the necessary funds which is required for investment, but before you get started you must be brutally honest with yourself. Simply understanding how the business world works is not always enough to actually make a success of it and you must remember that times move quickly. Be truthful with yourself and think honestly whether or not you have the necessary skills to turn your business idea into a success.

Do You Have The Energy?

Restlessness after finishing your working life is perfectly normal and it makes good sense to want a project to work on. There is however, a grand difference between having the energy to put into a side project, and the energy levels which you’ll need to launch your own company. Ask any successful business person and they will tell you that those early years were the most difficult, working hard, learning, making mistakes and ultimately finding their way in this new world. Even some younger people do not have what it takes to make a successful business, so you must address whether or not you still have that spark, and the right amount of energy which a nascent business demands.

Risk Calculation

There will always be some amount of risk attached to launching a business from scratch, and you need to assess how much risk you can, or are willing to take. Even though you may be in a better position than many regarding getting your start-up off the ground, based on your lack of time and financial constraints, you will still be risking a great deal of what you have built over your lifetime. Businesses fail every single day and you must ensure that you have calculated your financial liability should the worst happen.

Dedication of Time

A trap many fall into during their retirement is thinking that the grass is greener on the other side of the road, and invariably it is not. With this in mind, you may find that the extra work and the beginning of a project will ease your restlessness, and it probably will, but you must be prepared to feel bad that you are not clocking up some more minutes with the grandchildren. If you do wish to start a business in retirement, consider the amount of time you’ll need to dedicate, and work out how this fits in with the benefits which retirement has given you.

There is nothing to say that you won’t be successful, but you should think long and hard before you decide to dust off your desk and launch a new business after you have retired.

About A Neumann & Associates, LLC

A Neumann & Associates, LLC is a professional mergers & acquisitions and business brokerage firm having assisted business owners and buyers in the business valuation and business transfer process through its affiliations for the past 30 years. With an A+ Better Business Bureau rating, the company has senior trusted professionals with a deep knowledge based in multiple field offices along the East Coast and has performed hundreds of business valuations in its history. The firm’s competitive transaction fees are based on successfully completing transactions. For more information, please contact A Neumann & Associates at 732-872-6777 or

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Andrey O, Investor

“Finally enjoying retirement after recently selling my business using the services of A Neumann & Associates. Joe Oddo provided the conduit to a successful transaction. Joe knew when to inject input and when to simply listen and allow the buyers to vent, step back and regroup. The outcome met our expectations and got us to the finish line, which included my staying with the company six months in order for the buyers to get their footing and keep our workforce in the loop. He helped at every step by providing his expert guidance & resources. Thank you!”

Emily Parker Myers, Co-Owner - Myers McRae

“I had been in touch with Karin and Gary from A Neumann & Associates regarding some opportunities and was looking forward to meeting with them. Hence, when they organized a seminar in Princeton, NJ, I was quick to sign up. The seminar was very informative as the team walked the attendees through various scenarios and referenced real life buying/selling situations they had been through. The sessions by Gary, Karin and Achim were crisp and focused and brought clarity to potential seller and buyers. I strongly recommend the team and look forward to continue working with them.”

Gaurav Tyagi

“Thank you for your Event on "How to value, Sell, and Buy A Business for Maximum Profit" and the insight into ANA’s approach on what is involved in the Business Exit for sellers. Garys Hervieiou's "Business Valuation", Achim's "Deal structure" presentation and Karin’s "Preparing the Package" are real street knowledge shared. They answered attendees questions which makes it more interesting for learning from others. Great for small businesses like us. The presentations were totally worth our time and travel for the event to Princeton, NJ from Rockville MD. Ravi Bhutani, President, CIPS”

Ravi Bhutani

“Gary, this is to thank you for an excellent job done in selling our business. We could never have done it without your professional expertise, dedication and time put in without reservation to make it happen. We will gladly and highly recommend you to anybody in our position.  It was a pleasure to work with you.”

Pat Iammatteo, Owner

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Eric H., Investor

“I recently contacted A. Neumann and Associates about getting a valuation of my business done. I spoke with Marc, who explained the process in detail. After meeting with Marc in order to get a clear understanding of my business, and what I was hoping to accomplish. His patience in answering all my questions and his knowledge of the proper way to market my business gave me great confidence that this is the firm I will be using to sell my business for max value. Working with Marc at A Neumann & Associates was very easy and professional. I did not know all that was going to be involved in selling my business but they helped me through the process. What I thought was going to be a just another one of those pushy sales companies was just the opposite. Polite, knowledgeable, and a pleasure to talk to and deal with. I highly recommend this firm to anybody who wants to sell now or down the road. Marc not only knows his stuff, but actually is a real nice guy.”

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