As a long-time entrepreneur myself, it’s shocking to hear that a whopping 34% of small business owners have no retirement savings plan in place.
While the reasons for not having a retirement savings plan often varied widely for these busy entrepreneurs, surveys have shown that factors like insufficient income, investing their existing savings into growing their businesses, and planning to one day sell their company in order to fund retirement are amongst the top contributing factors.
Regardless of the reasons for finding yourself in a position of having little to no retirement savings as you reach the retirement age, it’s never too late to start doing something about it.
Here are three solid ways to keep growing your business today—while still setting aside a meaningful amount of income to pad your retirement fund for tomorrow.
1. Start a low-cost side project to grow your revenue
Offering your time, skills, and expertise as a consultant, freelancer or service provider is one of the best ways to begin generating additional side income beyond just what your current business does today.
Whether it’s working one-on-one at an hourly rate to consult people on how to achieve the types of feats you’ve accomplished in your business, offering small group coaching sessions on a monthly retainer, or public speaking, you’re leveraging your skills into a more advanced educational opportunity for others.
Finding customers doesn’t need to be a major hurdle, either. If you start a blog and begin strategically sharing your expertise online, you can eventually attract an audience of readers that want to learn more from you. Build your reputation by writing for other websites and publications with an established audience and then once you’ve got a steady stream of readers coming in, you’ll have many more opportunities to monetize your blog.
2. Share subscriptions and tool memberships with other business owners
If there’s a particular online tool or subscription that’d be helpful in more efficiently operating your business, but you can’t justify the additional expense to purchase it—cut down on costs by finding a friend who’s already using the product or getting another business owner to go in on splitting the monthly bill with you.
Whether it’s the Adobe Creative Suite, an advanced SEO researching tool, or another product that could make a meaningful difference in the operation of your business, this is a great tactic to reduce your monthly overhead and build up your savings.
3. Ditch the office and work from home (or a coworking space)
Is your business completely dependent upon operating out of an office or retail space? If not, then ditching what’s often the largest monthly expense for a small business, can really free up a sizable amount of capital to divert towards retirement savings.
Believe it or not, thousands of companies around the world are now choosing to go remote and hire employees in exclusively work from home jobs. If this strategy could fit your business model, then consider cutting ties with a physical office and manage your remote team from a much more affordable coworking space, the local library or a home office.
The best time to begin saving for retirement was ten, twenty or thirty years ago.
But your next best bet is to start taking it seriously today. Use these tactics to stay scrappy, keep growing your existing business and do more to proactively set aside a meaningful chunk of income for that beautiful retirement day on the horizon.
Guest-written by Ryan Robinson
Ryan Robinson is a blogger, podcaster and side project aficionado that teaches more than 400,000 monthly readers how to start and grow a profitable side business on his blog, ryrob.com.
Published on May 21, 2019