Editor's note: This is the first in a series of articles on the planning considerations and decisions that business owners face over the lifecycle of creating and running a company.

When starting a business, one of the most important things to consider is how it will end. Whether you'll sell the business, step back and let your children or employees run it (or buy it from you), or just shut it down when you are tired of running it, thinking about the possibilities now will help you decide how to structure your business from the beginning.

And while it's impossible to know for sure what you'll eventually do with the business you're starting today, considering these details at the outset should ensure smoother sailing if problems arise as the business evolves.

1. What is the best way to structure and own your new business?

One of the first decisions to make is how to organize the business. There are several options, and without proper advice, some important considerations may be missed.

Organizing a business as a sole proprietorship, a corporation, a partnership, a limited liability company or an S corporation will have tax effects:

• Sole proprietorship. This is the simplest way to own a business, but it offers no liability protection, and the owner will be taxed on the business income and potential benefit from start-up losses.
• LLCs and limited partnerships. Offer liability protection with pass-through taxation and some flexibility over tax elections and potential benefit from start-up losses.
• C corporations. Offer liability protection, but profits must be taxed at the corporate level and again when distributed to owners.
• S corporations. Offer liability protection with pass-through taxation to avoid double taxation and potential benefit from start-up losses.

These tax effects will impact the operation of the business and, if the business is eventually sold, the way the sale will be treated from a tax perspective. It is therefore important to consider the possible outcomes associated with your choice of entity:

• What will your decisions do to your income tax liability — federal, state and local?
• Will an eventual sale of the business lead to capital gains tax treatment or ordinary income tax treatment?
• Will you have an entity-level income tax and a personal income tax liability from business earnings, and how will any losses be recognized?
• Are there approaches that provide tax advantages upon exit?

When a business is sold, the gain is often subject to tax. Depending on the structure of the business and of the sale, some may be taxed as capital gain and some may be taxed as ordinary income.

However, there are approaches to organizing the business at the outset that can mitigate the impact of these taxes.

One is organizing the business under the qualified opportunity zone rules, and another is organizing it so that it qualifies for the qualified small business stock exemption.

Both programs were enhanced or extended through the recent One Big Beautiful Bill Act (OBBBA), and if tax savings on sale is of interest, you should engage advisers to assess the viability in your particular situation.

There are planning techniques to minimize the taxes paid after the initial company setup, as well as before and even after the sale of a business, and some of those will be addressed in a future article in this series.

2. When starting a business with co-owners, how will you deal with conflict?

It is common for unrelated persons to start a business together. This makes sense for lots of reasons, not least of which are:

• No one person knows how to do everything
• Spreading ownership among multiple people means spreading the start-up and operating expenses of the business among them, thereby reducing the initial financial burden

However, sharing ownership with non-family members can also create complexities that you should consider at the outset of your journey. Thinking about possible conflicts before they occur often leads to a better outcome when conflict happens.

So, include provisions that address how you want to control and resolve conflicts.

For example, if the co-owner(s) of your business want to cash out at some point in the future, how do you want this to unfold?

Many business owners will include provisions that require the exiting owner to offer their ownership interest to the other owner(s) first, subject to a process that is contemplated in the governing agreement.

These provisions may include a methodology for valuing the ownership interest, payment provisions and permissible successor owners of that interest.

These provisions may also control how an owner may give their interest to others, and whether another has a first right of refusal if an owner wishes to give some of their interests away to family members, for example.

3. What are the tax benefits of transferring or gifting part of your business early on?

If you feel like the business will have significant value at some point — and after all, who doesn't think this when you start a business? — you may wish to consider transferring some of the business ownership interest to trusts for the benefit of your spouse, children and/or grandchildren.

The reason for doing this early is that the business will likely be valued at the lowest amount when you start it. Why does this make a difference? When you give something away — to a trust or outright — there is a federal gift tax on the value of what you have given away.

Often, this does not require the donor to pay a tax for the gift because everyone is entitled to a certain amount they can give away to a non-spouse free of federal gift or estate tax (gifts to a spouse are typically exempt anyway).

This amount is often referred to as the "unified credit amount," and, beginning in 2026, this amount is $15 million per person.

This means that you may give up to $15 million away during your lifetime before ever paying a federal gift tax, and if there is any unused unified credit amount at the time of your death, you may give the rest away after you die when property you own is passed by title, by operation of your last will and testament or by revocable trust, or by beneficiary designation.

4. When should you create a business succession plan?

Who should run the business when you no longer want to do so? Should those same persons own part of the business?

While it may be difficult to decide who will run your fledgling business when you eventually retire, this is worth considering as early as possible.

• Keep it in the family. If you believe your spouse, children and grandchildren will take over where you leave off, it may make sense to hold business ownership interests (or some of these interests) in a trust that benefits the entire family as a way to keep the business "in the family."
• Outside ownership with family control. If you believe that you will transfer control of the business to unrelated persons and you still want your family to benefit financially when you are no longer in charge, you may want the operating agreement to include provisions that directly address who controls the business, irrespective of who owns the business.
• Selling the business to a third party. If you think you will eventually position the business for sale to a stranger, you may want to incorporate some provisions in the operating agreement that will permit gifts of discounted ownership interests to family members or a trust that benefits family members at the outset, thereby enabling discounted gifts to family, who will then share in the sales proceeds outside of the owner's taxable estate.

Most of these decisions can be revisited and changed later, but thinking about the possibilities now may lead you to incorporate some thoughtful provisions into agreements that will benefit you and your family in the future.

5. What happens if an owner of the business dies or becomes disabled?

As uncomfortable as it may be to consider, what do the owners do if one of the co-owners dies or becomes disabled and unable to perform the duties they used to perform?

Lawyers, accountants and other advisers will tell you what they ordinarily see in these circumstances, but if you and your co-owners can imagine another solution, an attorney can draft for it.

The importance of these provisions cannot be underestimated. Although you are excited to go into business with your co-owner, would you feel the same way about operating the business with their spouse? How about their kids or a trustee of a trust for those kids?

Similar to the provisions that address the co-owner who wants to cash out while alive, provisions that address what happens when an owner dies should be contemplated as you begin to build a business.

You do not want the equity — financial and sweat equity — that you put into the business jeopardized by the untimely death of your partner. And frankly, your partner's spouse may not want to work with you either.

As fun as it is to start a business, do not ignore the details. Left unaddressed, the details can create fissures in the business — or break it entirely.

Christopher F. Tate, J.D., Partner and Wealth Strategist at Fidelis Capital, has nearly 30 years of experience and specializes in wealth planning, advanced estate planning and cash-flow planning, delivering comprehensive strategies to Fidelis Capital’s UHNW families and institutions.

Rick Simonetti, Founding Partner, CEO and Head of Wealth Planning at Fidelis Capital, is a deeply experienced expert on integrating wealth planning, family dynamics and tax management into financial decisions and advice. His visionary leadership is guided by nearly 35 years of industry experience.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Passive income has become a buzzword in recent years. The idea sounds perfect — money rolling in while you do nothing. But in reality, it’s no magic pill. Most passive income streams require significant upfront work or investment before the rewards show up.

That’s one reason passive income tends to benefit the ultra-wealthy in the long term. For the average investor, it usually means putting in time, money or both, and waiting years before returns become meaningful.

Take rental property, for example. Renovating or advertising for tenants can take months of effort. Once that’s done, the income might feel relatively hands-off, requiring a few hours of work each month. Still, as with any income source, it’s never guaranteed — despite what the latest TikTok influencer might suggest.

Dividend stocks and investment income

Receiving dividends is one of the best kinds of passive income because it doesn’t require any work once the money is invested.

When you buy a stock, you basically own a share of a company. As such, you might receive a dividend, which is part of a company’s profit that it doles out to shareholders. The more stocks you have, the more dividends you can potentially receive.

Keep in mind, these dividends are typically issued by established companies rather than start-ups, as they often have the ability to re-invest most or all their profits.

However, companies can decrease or halt dividends at any time. That’s why relying on them for a consistent income can be tricky.

Use the tool below, powered by Bankrate, to get connected with a financial professional who can provide personalized guidance based on your unique financial needs and goals:

Real estate and rental income

Real estate is another popular source of passive income. If you have a rental property, the money you receive from your tenants is passive. Unlike most mortgages, rent usually rises over time.

But you don’t have to buy a piece of property to take advantage of passive real estate income. Instead, you can invest in Real Estate Investment Trusts (REITs), which buy shares in several different kinds of properties. For example, REITs are often invested in apartment buildings, as well as commercial and hospitality properties.

Buying a REIT has a fairly low barrier to entry, especially compared with owning a rental property. You can also sell your REIT investment at any point, making it much more liquid than rental property. You can also commit to different types of REITs at once, focusing either on individual mortgages or commercial properties.

Royalties, licensing and intellectual property

If you create an artistic or academic piece of intellectual property, you can receive royalties or licensing fees long after the work is done.

This can be one of the hardest ways to build a passive income stream though, because you need creativity and luck on your side. Writing a hit song or creating a patent-worthy product unfortunately isn’t possible for everyone.

Royalties and licensing fees can dip as your creation becomes less popular or relevant over time. This might be out of your control.

For example, in the 2010s, many bloggers made money from Amazon affiliate links when people clicked on and bought products. However, as Amazon cut affiliate percentages and Google changed their search algorithm, those bloggers saw their incomes eventually drop.

Business ownership and silent partnerships

Owning a business often demands more energy and financial commitment than almost any other type of work — but it can also deliver meaningful rewards. Once the business is running smoothly, you can hire employees to handle day-to-day operations while you continue to earn income.

That said, the early stages are rarely passive. Launching a business requires long hours, careful planning and a willingness to take on risk. Even established businesses need oversight to stay profitable, whether that means adapting to market changes or managing unexpected expenses.

Alternatively, you can invest in a business as a silent partner, sharing in the profits without being involved in operations. This approach typically requires more upfront capital than other passive income strategies, and there’s no guarantee you’ll recoup your investment. As with many passive income ideas, success often comes down to timing, preparation — and a little luck.

Why passive income fuels generational wealth

You’ve probably heard that one key to building wealth is having multiple income streams. Passive income can make this easier than juggling several jobs, but it still requires time and effort to set up. Think of it like saving for retirement — the results don’t appear overnight, and patience is essential.

If you’re starting with limited resources, dividend-paying stocks and REITs are often the most accessible options to begin building passive income.

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Call it boredom, call it opportunity, or even call it inevitable. Not only are U.S. retirees heading back to work in retirement — they're also running the show.

Take Jim O’Connell, a New Orleans-based newly minted charter boat captain for GetMyBoat.com, an Airbnb-like boat rental company that allows entrepreneurial boat owners to rent out or charter their vessels to customers.

"I’d been sailing for many years by the time I retired, and I had wanted to have a way I could supplement the maintenance costs of the boat," he says. "So I decided I would go get my captain's license and do sunset charters on Lake Pontchartrain."

O’Connell, who duly earned his U.S. Coast Guard Captain's license and began hosting sailing charters on his boat, says now he gets to meet people, earn money and enjoy being on the water.

"It’s a great option for many retirees who may own a boat but don't have a reason to go out on the water as much as they'd like," he notes. "By hosting charters, you have the opportunity to use your boat, meet new people and earn money in your retirement."

He's not alone.

According to Teamshares, an employee-owned business services company, 40% of small business owners are Baby Boomers. A separate study found that between 1996 and 2007, U.S. citizens aged between 55 and 64 had a higher rate of entrepreneurial activity than those aged 20 to 34.

So what's giving older entrepreneurs the edge?

Benefits of age and experience

Having a successful career to lean on and learn from gives older business owners a big advantage.

“Our recent report on 'solopreneurship' shows that Americans aged 65-plus make up about 15% of all solopreneurs,” says Andrew Chamberlain, principal economist at Gusto, an online payroll, benefits and HR software platform for small and medium-sized businesses.

Chamberlain says Baby Boomer and Gen X solopreneurs — business owners with no employees — often launch businesses with higher starting salaries than younger founders.

"While solopreneurs in general see revenues grow from about $290,000 in year one to over $500,000 by year five, older founders tend to pay themselves more in the early years compared to Millennials and Gen Z (who often reinvest in growth)," he says.

"These experienced entrepreneurs may launch with stronger networks, existing client relationships, or initial credibility, advantages that often come with age and career history," Chamberlain says.

But the numbers don’t tell the whole story. Those who’ve launched businesses in retirement have real tales to tell, often covering the emotional side of the journey they took — and how they're thriving because of it.

Here are five retirees who started their own businesses and are loving the experience, regardless of their age.

Dawn LaFontaine, owner of Cat In the Box LLC, Ashland, Mass.

Dawn LaFontaine started her pet products business, Cat In the Box, when she was 59 years old.

"My husband had just lost a job he'd held for 15 years, and I'd applied for several jobs I was overqualified for and didn't even get asked back for a second interview," LaFontaine says. "I decided that I was going to have to take control over my own working future, even though I hadn’t been working, if I was going to have one."

LaFontaine says she’s never looked back.

"My products have been featured in the Boston Globe, Parade Magazine and Fox News, among many others, and are in boutique pet stores around the country and in Europe," she notes. "Last year's sales were up 84% and are on track to double this year."

Her advice for retirees thinking about starting a business in retirement is twofold:

"Just start," she says. "Don't wait for the perfect idea to come to you. It's more about execution than product, and you'll probably need to pivot at some point anyway."

She also advises older Americans to stop analyzing and start doing, but with a plan. "Start very small so you don't jeopardize your life savings," she adds. "It's possible to start a business on almost nothing."

Janice Costa, owner of Canine Camp Getaway, East Durham, N.Y.

Janice Costa turned a side gig into something much more profound when the global pandemic forced her into an early retirement.

"I’d been dabbling with the idea and I decided to grow it into a real business rather than either just retiring, or going back into the workforce," she recalls. "Essentially, I went from a hobby to an S-Corp running Canine Camp Getaway, a business that plans vacations for dogs and the people who love them."

After working nearly 27 years in a corporate job for a company that required long hours and changed hands every three to five years, Costa says she was, well, dog-tired.

"When the pandemic pretty much forced me into retirement, I had mixed feelings," she says. "I'd started doing an annual dog vacation years ago, largely because I traveled a lot with my job, and felt it was unfair to leave my dogs behind for vacation when I was gone so much already."

Costa turned that idea into Canine Camp Getaway, feeling people might share her desire to go on vacation without leaving their dogs behind. She was right on the money.

The idea was to create a vacation where people could meet like-minded dog lovers while enjoying dog sports, activities, classes, vet seminars, dog-friendly evening entertainment and dog-focused charitable initiatives.

"I revamped the structure to become an S-Corp, started using QuickBooks, and began advertising in earnest,” she says. “I began doing more with selling [branded] merchandise at my events, and I added a second location, with multiple vacations a year in both New York and Pennsylvania."

Today, Canine Camp Getaway brings together as many as 130 guests per event and, depending on the size of the gathering, it offers anywhere from six to 11 classes every hour of the day during vacations, with courses on agility, nose work, hiking, swimming, dock diving and barn hunting, among others.

"I not only get to work with dogs, which I love, but I get to feed my creative spirit, coming up with new classes, craft ideas and event themes," Costa says.

Michael McCaman, cofounder and chief strategy officer of Orion Therapeutics, Union Bridge, Md.

Michael McCaman worked in the biotech industry for 35 years, always as a team member and team leader, but never a project owner.

"I was doing consulting at the time and met a young man with an idea and a patent application that I felt I knew how to develop and apply to the new gene editing field," he says. "We talked and agreed to make a startup out of it."

The company, Orion Therapeutics, was founded to develop nanoparticles for delivering RNA, like Moderna or Pfizer's COVID vaccines. "The special lipids (fat molecules) used to make those vaccines are painfully expensive to access, so we thought we could be a disruptive force in the growing mRNA delivery field and offer a safer, cheaper lipid option," McCaman says.

McCaman felt his knowledge and network with the industry were sufficient to make a go of it. "I had the luxury of saying I do not need any salary (yet) since I had and still have consulting income," he says. "That made it a pure play of passion and curiosity for me, which is really nice and allows me to stay calm all the time."

Age played a part in the decision, too.

"To attempt something like this as a younger man with a family to raise would have taken a lot more confidence than I had at that time," he explains.

Karen Hastie, founder of the Chamber Perks App, Sudbury, Ontario

Karen Hastie launched her technology startup business at 60, an age when most retirees or people approaching retirement have a different mindset; primarily, they want to slow down. "I realized I didn't feel that way," Hastie says. "I didn't feel 'done' yet, despite being a small business owner for 30 years. I felt I had more to give, both to myself and my community."

As Hastie phrases it, she realized that her age was her strength.

"I wouldn't have to start this business to put food on the table, so I could bring more purpose and passion to it," she says. "Moreover, my wins and failures as an entrepreneur have taught me enough to do this with confidence. I didn't think I was crazy to be levelling up at 60. If anything, I felt ready for an exciting chapter of life."

Hastie’s business, Chamber Perks App, a Canada-based Chambers of Commerce services provider, is thriving. "We’re doing well, both in numbers and in the value it is creating for small businesses, local Chambers of Commerce and communities," she says.

Hastie advises entrepreneurial retirees to steer their own path and ignore the naysayers.

"Don't live your life meeting society's expectations, and this applies especially during retirement," she advises. "While you might feel intimidated by all the new skills out there, remember that your wealth of experience and knowledge is a unique strength that will take you farther than you can imagine."

Drew Parker, creator of The Complete Retirement Planner (TCRP), Seattle, Wash.

Before deciding to retire, Drew Parker knew that he needed a detailed financial plan to ensure the timing was right and that he was financially prepared.

"I couldn't find a planning tool that didn’t rely on misguided assumptions and generic benchmarks, and that didn't require a math degree or 75-page user’s manual," Parker says.

"I also learned that 75% to 80% of households had no written financial plan and had no idea how to create one."

Parker saw that knowledge gap as an opportunity to not only help himself, but others, too.

"Having experience building financial planning tools for a $5 billion company, I created a planning tool for individuals based on the same financial planning principles used by professional advisers."

He created The Complete Retirement Planner (TCRP) for less than $600, as well as starting a corporation, designing an e-commerce website and making TCRP available for everyone online.

Parker describes TCRP as "easy for anyone to use, with plenty of notes and explanations, so calculations can be followed/understood, and all the detail needed for a comprehensive financial plan."

"Sales were slow at first, but word spread and within a year we had customers in every state," he says. "TCRP has grown every year since, with new features being added."

Parker says that retirees shouldn’t hesitate to use their skills and experience to make a difference for others. "It’s a good idea to challenge yourself, and to have some fun," he says. "You can always 'build a better mousetrap' or provide a better service, as long as you are passionate about it."

Will there be roadblocks? Sure, Parker says. "But you can overcome them, as you have in the past."

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"Mr. Beaver, my husband, 'Leroy,' is a high school history teacher and just inherited $50,000. He wants to use it to open a business but does not know what kind of business.

"I grew up in a family that still owns several small neighborhood hardware stores, started by my grandfather, so I know a lot about what it takes, but Leroy has no business experience at all.

"When I ask, 'Why?' he replies, 'I need to prove myself to your family.' Do you know someone who can share what it takes to start a business that is sure to fail? Thanks, 'Bea.'"

There is another way

My reader's email could not have arrived at a better time, as I was just about to interview David Whorton, Silicon Valley entrepreneur and author of Another Way: Building Companies That Last … and Last … and Last.

Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

Whorton offers a refreshing approach to building a business that endures, also known as an evergreen business — the goal is to put people first. "There is another way to build a successful business than the current philosophy of 'bigger, faster is always better,'" he says.

He shares with us how to start a successful business by setting out the steps that can contribute to failure.

Failing to conduct a risk assessment

Don't leap first, figuring that you'll simply work out the details later.

Risk comes in four major buckets:

• Market
• Team
• Technology
• Financing

A would-be owner needs to ask themselves many questions related to these four buckets:

• Do you understand the market, the intended customer and their willingness to buy?
• What will be required from all the technologies your product or service will rely on to be differentiated?
• Where are you going to find the good people you will need on the team?
• Will you be able to build it from its own cash flow or need to raise outside capital? If outside, what is the likelihood of successfully raising the funds required?
• What does your product or service and the products or services associated with it cost? How will you provide service and support?

Not knowing the answers could inevitably lead to your business failing.

Quitting your job and having no income separate from your new business

Your job and current paycheck might provide you with a safety net. "If you can continue to bring in income while building your company, you will give yourself more time and much less anxiety," Whorton underscores.

Not thinking through the business model

Whorton cautions against relying on what you see in other, similar businesses. You need to think about what you want to achieve and resist using the industry-standard business model.

Consider which business model is best suited to your concept, your business and your funding strategy: For example, retail, franchise, third-party distribution, marketing-driven and direct-to-customer (internet) sales all have different benefits and cash requirements.

If you want to build an evergreen business — one that will endure — you'll want a business model that generates cash early and does not rely on outside equity or debt.

Falling into the 'if I build a great product or service, they will come' mentality

Ask: How am I going to get this product in front of my customers? Through stores, partners, a third party, field sales representatives or other sales or marketing programs?

Biting off more than you can chew from an emotional perspective

Are you psychologically able to deal with the people issues that arise in any business?

Being a founder can be a lonely and very stressful process for a number of years. There is a lot of uncertainty associated with establishing and running a business. For example, Whorton says, "You lose a major customer, half your revenue vanishes, and you think, 'Oh my gosh, if I don't have a strong balance sheet, I have to lay off people! I just can't do that!'"

Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel (formerly known as Building Wealth), our free, twice-weekly newsletter.

Ask yourself and the people who know you best: Am I ready for these challenges at this stage of my life?

Feeling threatened and therefore not hiring people who have more experience than you do

Whorton points out that you need to hire people who can help your business succeed. "Just because you get along on the local baseball league team does not translate into that person being a competent, honest sales representative. Hiring people whom you are just friendly with, but you know little about their character or capability, spells trouble."

Don't ignore red flags, such as "I know that he never stays employed at the same place for more than a year, but I really like him, and he has a lot of cool things to say about how he works." The fact that this person has not survived in one place for more than a year tells you that something's wrong, and you have to dig into it.

Remember that character counts. "When you get good people with great character, take care of them and let them shine," Whorton underscores.

Going into business because you feel it's expected of you, including joining a family business

Running a business is hard, so you should really want to do it.

You want to go into the business with the attitude, "This is my purpose in life — I want to have a team that is allied with my vision and values." A red flag is someone saying, "I've got this idea. Now, I'm not really in love with it, but it seems to have some traction, so I'm going to run with it."

An inspiring read

Whorton concluded our interview with these comments: "If you are starting a business, ideally, it is one that you want to dedicate the rest of your life to. That's the secret to evergreen companies that endure well over a hundred years.

"My advice to college students who are vaguely thinking about getting into business one day is to develop a curious mind and consider yourself to be a lifelong learner. Pursue a well-rounded education and discover the common denominators of prior and current business leaders — what helped them succeed?"

Reading Another Way was as inspiring as my interview with its author. Whorton's candor made me feel as if we'd known each other for years.

If you are thinking of opening your own shop, Whorton shows you the way to building that place on the planet you will love to return to every day.

Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

For a growing number of retirees, the golden years are taking an unexpected turn. The trend of "unretiring" — returning to the workforce after retirement — is on the rise.

Whether driven by rising living costs, a need for social engagement or just plain boredom, retirees are launching side hustles and finding new purpose, a trend that shows no signs of slowing down.

Nearly 1 in 8 seniors aged 65 or older have returned to work or plan to rejoin the workforce this year, according to ResumeBuilder’s early 2026 data. Likewise, AARP’s February 2026 job sentiment report found that 7% of retirees have “unretired” and returned to the workforce in the past six months, with 48% citing money as the top reason.

Thinking about a side hustle? The right tools and apps can make all the difference. Dive into the essential starter kit to launch your unretirement journey today.

Must-have tools and apps to kickstart your retirement side gig

Starting a side hustle in retirement doesn’t mean learning complex systems or spending your hard-earned cash on expensive setups. With the right tools and apps, you can leverage your skills and manage your time — all while keeping things simple and stress-free.

Nic Adams, co-founder and CEO of Orcus, makes a good point. “Some individuals overlook that older adults often feel intimidated by technology or overwhelmed by too many options. That’s why it's important to focus on using just one or two tools."

Additionally, outdated software poses challenges, including privacy and security risks and reduced productivity, he noted. Keeping firewalls, antivirus software, and similar tools up to date can help alleviate seniors' concerns.

Thinking about launching a retirement side hustle? Here is your guide to the best apps, startup costs, payout potential, and perks, regardless of your background.

1. Executive and professional consulting

Cash in on your decades of career knowledge and expertise without returning to the full-time grind by consulting.

How it works

Consultants play a crucial role across various industries. They offer their expertise, deep knowledge, and insights to other people, businesses, and organizations. You can work solo as an independent consultant, small business owner, or contractor. Many retirees work just 5–15 hours per week on their own schedule.

Essential tools and apps

LinkedIn Premium. A professional networking, job hunting, and business development site. LinkedIn Premium will set you back $39.99 per month ($239.88 per year), but many professionals say it’s worth every penny. For deeper insights and broader search capabilities, try LinkedIn Premium Business, $59.99 per month or $575.88 per year.

TimeCamp. Best for time tracking and invoicing. Plans range from $3.99 per month to $9.99 per month, billed annually.

Calendly or Google Calendar. For planning your day/month. Calendly offers a basic free plan, but for most applications you’ll end up paying $10 to $16 per month, up to $15K. Google Workspace plans start at $7 per user per month.

4Degrees. Customer relationship management tools designed for professionals. Pricing typically starts at $100+ per month, depending on the plan and team size.

Zoom. Online conferencing. Zoom offers a free Basic plan with limited features. The Pro plan starts at $13.33 per user per month.

Patriot. Easy-to-use, cloud-based accounting software. The Basic plan costs $20 per month, while the Premium plan costs $30 per month.

Flowlu. Project and Task Management software that keeps invoicing, CRM, and finance tools all in one place. Up to two users are free. Other plans range from $9 for the basic plan up to $22 per user for the Advanced plan.

Wise or PayPal for easy payments. There is no cost to set up an account. Wise is an international money transfer service that lets you send, receive and spend money in 40+ currencies. There are no monthly subscription or account fees. You only pay a small, upfront fee per transfer. PayPal charges 2.99% + $0.49 or 3.49% + $0.49 per domestic transaction.

What it costs to become a consultant

Almost nothing to start ($0–$150). Optional: professional headshot ($200 to $400) or a simple one-page website, ranging from an initial DIY build ($0 to $450) to $1,500 for a professional design. Add hosting and apps: $15 to $150 monthly, and maintenance costs of $20 to $100 annually. You’ll also need to buy a domain name.

How much you can make

$101,568 per year or $48.83 per hour, via ZipRecruiter. Many of these jobs are part-time and remote.

Why it’s great for retirees

You stay intellectually sharp, feel seen and valued for your hard-earned knowledge, and enjoy complete control over when and how much you work. For most positions, the job is flexible and you work where and when you want. Keep in mind, you may be required to travel occasionally.

2. Freelance services — writing, virtual assistance, graphic design

Offer specialized professional skills honed throughout your career on a flexible schedule.

How it works

Provide short or long-term projects like content writing, account management or simple graphic design to clients directly or through freelance platforms.

Essential tools and apps

Upwork, Fiverr, FlexJobs, ZipRecruiter, RemoteJobs and other apps. These are among the main platforms to find clients. Typically, the app you use depends on the service you offer. For example, Writer Access or FreelanceWriting.com may be better for writing gigs, whereas Twine and Dribbble may be better for graphic designers.

Google Workspace or Microsoft 365. For professional email, documents and collaboration with clients. Retirees may prefer Microsoft, which costs about $6-$12 per month if they previously used it at work.

Canva Pro. Relatively simple drag-and-drop design for presentations, social media graphics and ebooks. Retiree-friendly and well worth the $15 per month.

Grammarly Premium. Helps correct tone, clarity, AI and grammar issues instantly. Huge time-saver at about $12 per month.

Wise or PayPal, as mentioned under the Executive and Professional Consulting section.

What it costs to become a freelancer

From $0 to $200 (mainly for premium platform subscriptions). Upwork (and other sites) may also charge a freelancer service fee ranging from 0% to 15% on all earnings. You’ll also need a website to show off your expertise. An initial build will run about $0 to $450, up to $1,500 for a professional design. Add hosting and maintenance costs, plus the price of a domain name. Typically, you’ll also use your own computer and software.

How much you can make

Reasonably, between $25 to $100+ per hour. Realistic part-time earnings can run $1,000 – $4,500 per month or approximately $99,230 per year, according to Upwork.

Why it’s great for retirees

You can often work from home on your own timeline, use skills you’ve already mastered and avoid a long commute. You can potentially earn much more after you’ve gained a following and earned positive feedback from repeat clients.

Word of warning: Some listed jobs might be scams, so if a job looks too good to be true, it probably is. Also, never pay anything up front, and double-check to ensure the company is legitimate by visiting its website and searching for reviews.

3. Pet sitting, dog walking and house sitting

There are currently more than 95 million U.S. households that own at least one pet. From 65% of U.S. dog owners walking 3 to 5 times per week and 82% of walkers using scheduling apps, the numbers reveal how preferences, pricing, and technology are shaping daily care across countries.

How it works

Care for pets in their homes or yours, walk dogs, or house-sit while the owners are away. The job involves flexible hours, but may include weekends and holidays.

Essential tools and apps

Rover, PetBacker and Wag!. These are popular platforms for pet sitting, dog walking, boarding, and drop-in visits. Pet sitters and walkers can set their own rates and build long-term relationships with clients. There is a small service fee to start (15% to 25%) on each site, but providers typically keep 60-80% of the booking. There are no monthly fees.

TrustedHousesitters. A global platform where sitters live in the home and care for both pets and the property in exchange for accommodation while the owners are away. Sitters can earn $129 – $259 per year, minus a per-sit fee.

Square (or cash) for payments. Square has three tiers: $0 per month to $149 per month.

What it costs

On average, about $0 to $100, which can include a background check and basic insurance.

How much you can make

Retirees can earn $14 to $50 or more per day per pet, with many people clearing $31,000 per year part-time.

Why it’s great for retirees

You can stay active, get fresh air, enjoy unconditional love from animals and work your own hours while getting paid.

4. Local handyman or home services

Perfect for healthy and reasonably fit retirees who enjoy practical, hands-on projects and helping neighbors.

How it works

Handle small jobs like furniture moving and assembly, running errands, minor repairs, painting or yard work through apps or word-of-mouth.

Essential tools and apps

TaskRabbit. A marketplace platform that connects you with customers for help with everyday tasks. Clients pay hourly or per-task rates, which can run $35 to $80+ per hour depending on the task and location. TaskRabbit charges service fees, usually 15–30%. Users will also pay a one-time background check fee of about $25.

Nextdoor and Facebook or Facebook Marketplace. Social networks for recommendations and offering services within your neighborhood. Nextdoor and Facebook Marketplace are completely free. You determine charges with your clients.

Thumbtack or Angi. Thumbtack is best for flexible, pay-per-lead work with no monthly fees. However, you do pay for the service (often $20–$80) even if you’re not hired. Angi works well if you want more serious home-service customers. Angi offers free basic listings for contractors, but paid programs like Angi Ads and Angi Leads can cost between $85 and $200 per lead.

Jobber or Square. Invoicing and payments. Jobber and Square help with quoting, scheduling, invoicing, client management and payments. Jobber plans run $49 to $399 per month for up to ten users. Square has three tiers: $0, $49, and $149 per month.

What it costs

Overall costs are $0–$300 for background checks, basic insurance and any specialty on-the-job tools.

How much you can make

Between $30–$60 per hour. Active retirees often earn $1,500–$4,000+ per month, working about 10-20 hours per week. The national average salary for handymen in the U.S. is about $50,000 annually.

Why it’s great for retirees

You’ll stay physically fit and active while working at your own pace and see immediate results. You can also build a positive reputation (which means additional future work) and meaningful local connections.

5. Creative gig economy — Etsy, photography, crafting, content

Turn hobbies or creative talents into income.

How it works

You’ll offer project-based work in creative fields, such as graphic design, writing or video editing. Or you can sell handmade items, digital downloads, photography, or crafts online, or create content around your passion. Retirees can earn supplemental income and stay mentally active without the pressure of full-time work.

Essential tools and apps

Etsy and Shopify. Both platforms let you open a shop and sell directly to buyers worldwide. Total fees on Etsy typically run 12–15% per sale. There is no monthly fee to start a basic shop. Shopify offers five pricing tiers, starting at $5 per month for its starter plan, up to $2,300 per month for Shopify Plus.

Canva Pro or Adobe Creative Cloud. Canva Pro is ideal for quick graphics, presentations and content creation, while Adobe Creative Cloud offers advanced editing, vector design, video production and customization for serious creatives. Canva Pro: $12.99 to $18 per month or $144 per year. Adobe Creative Cloud Pro (all Apps plan): $69.99 per month.

Instagram or TikTok. For marketing your talents. Instagram is free for personal and professional accounts. You only pay if you run ads, which can cost $0.20 to $2 or more per click. There are also optional paid features, including Subscriptions. TikTok is also free, but advertising can run $0.50 to $2 per click.

Printful or Printify. Both Printful and Printify are print-on-demand (POD) services that let you design and sell custom apparel, accessories, home goods and more without needing to hold inventory. You also set your own prices. Printful is free. Its Growth plan is $24.99 per month, and becomes free when you reach $12,000 in annual sales. Printify ranges from $0 to $39 per month depending on the plan.

SmugMug. Sell your photos through websites, client galleries, print sales and digital downloads. SmugMug prices range from $20 to $37 per month.

What it costs

On average, $0–$400. Camera gear, inventory, printing costs and more can add up, but with sales come profits.

How much you can make

Varies widely. Many retirees earn $500–$3,000+ per month once established; top shops do much more. Most Etsy sellers earn about $574 per month, but top sellers can earn over $10,000 monthly. Mega-influencers on Instagram can earn even more, up to $10,000 or more per post.

Why it’s great for retirees

You can express your creativity on your own schedule by working from home and turn a lifelong passion into savings for a happy retirement.

6. Tutoring, Coaching and Teaching

Share a lifetime of knowledge with others.

How it works

Tutor students online or in-person, coach or teach classes in your area of expertise, such as foreign languages, music, history, sports and more.

Essential tools and apps

Zoom. Online conferencing. Zoom offers a free Basic plan with limited features. The Pro plan starts at $13.33 per user per month. Google Meet is another site to try. It’s free to use, but if you want more features, you’ll pay from $7 to $22 per month.

Tutor.com, Preply, or Wyzant. These sites connect students with tutors for homework and academic support (K-12 to college). Tutors are either paid a set hourly rate or they can set their own rates. Each site typically takes a commission, ranging from 18% to 25%.

Calendly or Google Calendar. As mentioned in the Executive and Professional Consulting section.

Teachable or Thinkific. Past and tech-savvy teachers can now build, market, and sell their own digital curriculum, courses and coaching programs online. Plan pricing varies, ranging from $39 to $399 per month on Teachable. Pricing on Thinkific ranges from $0 to $199 per month.

What it costs

On average, you’ll pay between $0 and $150 for platform fees and basic marketing.

How much you can make

On average, $25–$80+ per hour. Part-time retirees commonly earn $1,000 – $4,000 per month.

Why it’s great for retirees

You can stay mentally engaged, enjoy meaningful interactions with students and experience the joy of helping others succeed. However, it may not be as flexible as other side hustles.

7. Driving and delivery services

Simple, flexible way to earn while you’re already out and about

How it works

Deliver food, groceries, or passengers using your own car on your own schedule.

Essential tools and apps

Uber, Uber Eats, DoorDash, Instacart. All are free to join as a driver, dasher, or shopper. You keep most of your earnings, but the platforms take a cut. Earnings vary widely by city, time and demand, but 100% of the tips are yours to keep.

Amazon Flex. Use your own vehicles to deliver Amazon packages. The service is free to join and you get paid per shift ($72 – $150 for 3–5-hour shifts). You’ll also have the chance to earn even more during peak seasons and holidays. You must be based in an area where Amazon Flex operates.

Stride. This app automatically tracks your mileage, logs expenses and income, and helps you maximize tax deductions with IRS-ready reports. Best part? It doesn’t cost a thing.

What it costs

Gas (the U.S. average in June 2026 is $4.49 per gallon) and vehicle wear and tear.

How much you can make

On average, retirees can earn $15–$30 per hour during peak times (after expenses). Part-time: $800 – $2,500 per month.

Why it’s great for retirees

Total flexibility. Work when you want, listen to podcasts or audiobooks while driving, and get out of the house with no long-term commitment.

Tax tips for your retirement side hustle

Starting a side hustle in retirement is exciting, but staying on top of taxes will help you keep more of what you earn. Here’s what every retiree should know in 2026:

1. You’ll owe self-employment tax

Most side hustles count as self-employment income and you’ll pay self-employment tax on your net earnings. But the good news is that once you reach full retirement age, earning extra income no longer reduces your Social Security benefits.

2. Make quarterly estimated tax payments

The IRS expects you to pay estimated taxes quarterly. Mark these deadlines on your calendar:

April 15, 2026 (Q1)

June 15, 2026 (Q2)

September 15, 2026 (Q3)

January 15, 2027 (Q4)

Use IRS Form 1040-ES or set up payments directly on IRS.gov.

3. Track every deduction

Keep detailed records with apps like QuickBooks Self-Employed, MileIQ, or Expensify.

Common deductions include:

• Home office (if you have a dedicated space)
• Mileage or vehicle expenses
• Business portion of Internet, phone, and computer costs
• Supplies, tools and equipment
• Marketing and advertising
• Health insurance premiums (100% deductible if self-employed)
• Retirement contributions

Tips for success

• Start small: Choose one service or product to avoid overwhelming yourself. Remember, you’re retired.
• Protect your benefits: If you're under full retirement age, keep your earnings below $23,400 per year to avoid Social Security reductions.
• Leverage your experience: Highlight decades of expertise in your profiles or marketing to build trust with clients.
• Stay safe: Avoid scams by sticking to reputable platforms, such as those listed above. Never share personal financial details with unverified clients.
• Enjoy the journey: Pick a side hustle that aligns with your passions, whether it’s pets, teaching, driving or crafting. The goal of a side gig is to stay active, engaged and financially secure while having fun.

A side hustle can keep you happy in retirement

“The key to thriving in a side hustle is choosing tools that feel approachable and build your confidence," said Christina Muller, LCSW, Licensed Workplace Mental Health Expert and Strategist at R3 Continuum.

"That sense of momentum taps into something deeper: Our human need for purpose and alignment," she said. "When you feel productive, you're far more likely to be productive.”

Grab your laptop, pick a platform, and start building your unretirement adventure today.

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• 10 Things to Know About Working in Retirement
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A trip is exciting. Not so exciting? The actual planning phase — especially if it's to a location you're not familiar with at all.

Sure, you can do research online and ask your friends for recommendations, but there is a ton of information to sift through out there, and the logistics can be tough to crack. Enter: a travel company.

Not only do tour operators take the sting out of vacation planning, they make it significantly easier once you're there, too. No need to obsess over train time tables or daily itineraries; you can just focus on truly enjoying your trip.

Of course, there is still some work to be done: Choosing the right travel company for you. There are so many options — you just need to pick the one that matches your vision. These choices below don't only come highly rated, they're also well-suited for specific or niche dream trips.

Abercrombie & Kent

• Ideal for: Seeing major sights with a group
• Locales: All continents, with 60 offices in 35 countries
• Founded: 1962

Classics are classic for a reason. Per company lore, Abercrombie & Kent founder Geoffrey Kent was born on safari in Kenya, "his beloved homeland." With six decades of experience, Abercrombie & Kent has a broad footprint in the travel world. Conde Nast Traveller readers ranked it the ninth-best general tour operator in 2024, with a 94.99% satisfaction rating.

If you're looking to travel somewhere new to you and want to journey through different experiences, A&K is a great place to start. They organize tours — including small group journeys, cruises and safaris — as well as private travel and private jet trips.

Choose from pre-made itineraries or let A&K experts create a bespoke schedule just for you. If you're joining a tour, plan to stick with their set dates and book a trip before it fills up.

Just remember it all comes at a price: A 12-day safari in Kenya and Tanzania with a small group (up to 18 people), for instance, goes for $13,495 per person, although the company often offers discounts.

TravelQuest

• Ideal for: Eclipse chasers and awe seekers
• Locales: All continents, following the moon
• Founded: 1996

TravelQuest plans trips around solar eclipses and other sky-related phenomena. If you want to experience the full solar eclipse in 2026, for example, you can join a TravelQuest cruise to Greenland and Iceland, or book a tour of Spain or Iceland.

Kiplinger digital managing editor Alexandra Svokos recalls her remarkable 2010 TravelQuest trip to the Cook Islands to see a solar eclipse — every moment felt like a marvel, even though clouds blocked the view of totality.

Chasing eclipses often leads to destinations you might never have considered, and TravelQuest works hard to ensure that, even with unpredictable weather, you’ll witness something extraordinary and experience something unique. On that 2010 trip, for instance, the group visited such a remote island that TravelQuest had to secure special permission to access. Guests slept in the local schoolhouse because there were no hotels.

The 2026 Spain trip, as another example, doesn't just drop you in Barcelona to see the eclipse, but to rural Castilla, a place pinpointed by the company's astronomers as ideal for viewing the eclipse. A 10-day Spain trip starts at $10,285 per person.

&Beyond

• Ideal for: Spotting the "Big Five" on safari
• Locales: Africa, Antarctica, Asia, South America and Indian Ocean islands
• Founded: 1991

&Beyond organizes travel with an eye for sustainability and conservation. But, while the company pays close attention to its impact on the environment and local communities, it promises travelers will feel pampered by their amenities and services, which include trip plans as well as company-owned lodges and camps.

"They are truly bespoke and offer excellent service," frequent traveler Gracie, who asked to only use her first name, told Kiplinger. "We used them to safari and I felt like a queen!"

One of &Beyond’s hallmarks is its luxury tented accommodations — think hardwood floors and elegant furnishings — set within some of Africa’s most iconic nature reserves and parks. Imagine watching the Great Wildebeest Migration unfold from the comfort of a cushioned patio chair.

Pampering doesn't come without costs. A nine-night Tanzanian safari in the Masai Mara, Serengeti and Ngorongoro Crater will set you back $14,635 per person. Many customers will tell you it's well worth it the investment for an unforgettable experience.

Marathon Tours & Travel

• Ideal for: Runners chasing travel dreams
• Locales: All continents, including an exclusive Antarctica marathon
• Founded: 1979

Not for the meek, Marathon Tours & Travel caters to athletes looking to run races all around the globe in unique destinations like Bhutan, China's Great Wall, Kangaroo Island and the desert around Petra.

Just scrolling through the options might make you wish you were a marathon runner. This company has created races in some of the world’s most remote places, offering incredible, once-in-a-lifetime experiences to add to your bucket list. In the 1990s, they launched the Antarctica Marathon, making it possible for runners to join the "Seven Continents Club" by completing a marathon on each continent.

For experienced runners, the company can help cross milestone races, like Boston, Berlin, New York and Tokyo, off your list with guaranteed entries and logistics covered.

"If you are traveling solo or as a couple and don't mind spending the extra money, MTT is awesome," wrote one Redditor who said they took trips with the company to Berlin and London. "They only book the best hotels, are very organized and very professional. Their meet-ups, tours, breakfasts and dinners have all been good."

Pricing varies based on where you're going and what exactly you want to get out of a trip. The four-night Berlin Marathon Tour, for instance, starts at $2,950 for single occupancy at the JW Marriott, including lodging, a cocktail reception, a pre-race dinner, a post-race celebration and a half-day city sightseeing tour. Guaranteed entry for the race will cost an additional $350.

Kensington Tours

• Ideal for: Travelers who want bespoke luxury
• Locales: Over 100 countries on all continents, including the Arctic and Antartica
• Founded: 2006

Some travelers may have one specific gripe about tour operators: Aren't they just getting the same copy-and-paste vacation experience as thousands of other tourists? That's definitely not the case with Kensington Tours, which prides itself on its custom trips — the website explicitly states that "no two trips are the same."

Instead of a turn-key itinerary, Kensington Tours assigns you a "destination expert" who helps craft your dream vacation (and provides support when you're actually there, too). You'll receive a customized itinerary that you can change whenever want, providing a rare flexibility you won't get with many other operators.

Kensington Tours has options all over the globe, including cruises, luxury villa stays, food tours, culturally immersive experiences, safaris, personal retreats and more. Tell them where you want to go and what you want to do — they'll make it happen.

Of course, this level of support and luxury (emphasis on luxury) doesn't come cheap, although there's a wide range of prices available. On the lower end, a six-day Scandinavia tour focusing on major cities costs upward of $6,842. For a truly lavish option, expect to pay at least $31,494 per person for a 21-day expedition to Antartica and Patagonia.

If you're looking for a truly unique experience, it just might be worth it. Kensington Tours has 4.8 stars on TrustPilot, with one recent user, Lynn Flaherty, raving, "Our recent trip to Vietnam was most excellent! ... We were able to get out and met the locals, enjoy sumptuous food at both delicious restaurants and from street vendors, and had many adventurous excursions. Our in-country guides were excellent."

Country Walkers

• Ideal for: Hikers and outdoor enthusiasts
• Locales: North America, Europe, New Zealand, Peru
• Founded: 1979

If your motivation to travel is the great outdoors, consider Country Walkers, a tour operator that runs group trips and self-guided walks. On all of their tours, you'll do a beautiful hike over several days — soaking in nature with planned stops for cultural experiences along the way.

For example, consider the itinerary for the Country Walkers tour in Greece. Not only will you explore mountains and the beach, but you'll visit the Temple of Delphi, a winery owned by a local and an ancient monastery — all in the company of an experienced guide. It's no wonder Country Walkers has a 4.9 star rating on TravelStride, with reviewers describing it as "a great combination of walking and culture trip with insider access" and "so beautiful, culturally rich, and very well-organized."

Love to make friends and prefer to have a guide always present? Select a group tour, which allows for up to 18 people. You'll still have free time with this choice, so don't worry about a nonstop schedule. This is typically the pricier option, ranging from $3,245 to $7,795.

With self-guided tours for solo travelers, you set the pace and enjoy time by yourself. Instead of a guide, Country Walkers will give you an itinerary, handle booking your lodgings, cover many of your meals, transfer your luggage between stops and supply a representative available to help you 24/7 as you make your way through the journey. Costs for these trips range from $2,045 to $8,445.

With both options, you can pick from a variety of difficulty levels: Some trips are labeled "easy" and as short as two miles a day, while others are more challenging, covering up to 10 miles a day.

Food N' Wine Vacations

• Ideal for: Foodies and wine lovers
• Locales: Italy, Spain, Portugal, Greece, France, Croatia, Slovenia, South America
• Founded: 2003

Ask many people their favorite thing about traveling, and they'll immediately respond, "The food!" Experiencing the local cuisine is one of the best ways to connect with an area's culture, and of course, it's always fun (and delicious) to try new dishes and specialties. Food N' Wine Vacations creates its tours with exactly that in mind.

Visitors on a Food N' Wine Vacations tour do far more than sample incredible meals at restaurants, markets and food stalls — paired, of course, with wines and other local drinks, as the name suggests. Each itinerary weaves in the region’s history, natural beauty and hands-on encounters with local experts, such as chocolate artisans, cheesemakers and vineyard owners. Plus, the company notes, it chooses beautiful "private estates that capture the essence of the region" with a "story or history" for the tour accommodations, so that you're surrounded by local culture from sun up to sun down.

Food N' Wine Vacations keeps it simple, creating the itinerary for your tour so all you have to do is show up. A private guide who's an expert in the region and its cuisine will lead you each day as you experience one of life's greatest pleasures: food.

"Our Taste Of Tuscany wine tour was way beyond our expectations. The Villa was out of a dream with wine flowing and delicious home cooked breakfasts and dinners and two fabulous cooking classes," Local Guide Google reviewer Cheryle Derman wrote. "The guided private tours were exactly what we were hoping for. We have already booked Greece for 2025."

Prices for a tour with Food N' Wine Vacations vary, depending on length and location, starting at $1,850 per person for an experience (not including flights).

Keep in mind that while travel companies do a lot of planning and logistics for you, they may not necessarily include travel insurance.

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Building and sustaining a business during our new economic reality (or unreality) can feel daunting. I know your head is spinning; mine is. I feel your pain.

There is no easy solution, but I’m going to explore some of the basic strategies you can employ to build your billion-dollar business in any economic environment, including this one.

Step No. 1: Find a problem to solve

I advise my clients that the number one step to building any business is to first identify a need for your product or service or a problem that needs to be solved.

Your solution will also have to be unique or, at the least, better than other companies are supplying.

If your goal is to be big, you will also need to know how to scale your idea. And your superpower will be your courage and your ability to listen to the market and be agile enough to pivot to meet changes necessary in all areas of your business.

Did I mention that you will also need enough capital to make this all happen?

Step No. 2: Focus on a large, global and growing market

If you are looking to make billions, consider these industries: AI and machine learning, fintech, health tech and longevity, clean energy, mental health and wellness, gaming and smart cities, among others.

There is vast global growth potential for companies that can build in these markets. You should tailor your offerings for regional expansion and also be flexible enough to partner and collaborate with local businesses. This can ease your market entry.

Step No. 3: Build a scalable business model

After you test your products or services, you need to make sure that you build your customer base to have recurring revenue. It costs a lot to procure a customer, and you want that revenue to be as evergreen as possible.

That doesn’t mean that you won’t add goods and services to your roster; it’s just that it is really costly to reinvent your customer base each time you sell a product.

Your product will become more valuable as more people use it and spread the word in this world of social media.

Step No. 4: Leverage technology for rapid growth

This might seem obvious, but it’s not. You must ensure that your company is as automated as possible and that it is data-driven, utilizing analytics to manage all aspects of your business for rapid and cost-effective growth.

You must also build an ecosystem of products and services that respond to the market so you can pivot when needed.

Your technology will also assist with distribution and marketing as you leverage digital channels for rapid and cost-effective growth, making it easier to reach broader audiences.

Technology will also help you to identify diversification in your supply chain that may be under threat in this world of on-again, off-again tariffs. You don’t want to get squeezed out of a supplier or risk significant cost increases, if you can avoid it.

Step No. 5: Focus on customer experience and build your brand

If you have the ability and desire to listen to your customers, they will inform you about their needs and how well you are performing. This means that you have to build a user-centric company/product/service design that encourages customer loyalty.

You can emphasize the unique value of your product and offer premium features to justify higher prices.

Customers want to be loyal to a brand and share their experiences with their friends. Create that community around your brand where you can iterate seamlessly.

Your brand and its accompanying storytelling must be synonymous with solving the customers’ problems.

Step No. 6: Assemble a world-class team of employees

I know this is not easy, but you must be the leader to hire passionate, resilient and adaptable people who believe in your mission and can grow with you.

You should be transparent with your team about your challenges, their risks and what you expect of them. Incentivize these individuals financially, not only with salaries, but also with equity compensation.

Looking for expert tips to grow and preserve your wealth? Sign up for Building Wealth, our free, twice-weekly newsletter.

Coming out of the banking world, I know that it is vital for your bankers and investors to feel that they are a part of your team. Ideally, you want them to contribute more than just capital and loans.

They need to believe in your actions and provide funding to grow. Additionally, you must stay in close contact through good and bad times and make sure that there are never any surprises.

Speaking of financial planning, our fluctuating exchange rates can compound the tariff costs. Try to hedge against currency risks when you can. There are insurance products specifically designed for political and trade risks.

If you can, try to maintain a reserve to help absorb these unexpected tariff expenses. Your bankers can advise you.

Step No. 7: Develop an agile and sustainable competitive advantage

There are so many cyberthreats to any business from here and abroad. In order to grow with a competitive advantage to solve the big problem(s), you will have to protect your core technology via patents and protected intellectual property (IP) and leverage your proprietary data to build smarter solutions to address your customers’ problems.

To build a competitive advantage, you will also have to be agile and resilient. This means having contingency plans to pivot for any market disruptions while constantly investing in research and development to stay ahead of the competition by exploring new products and new markets.

Try to include tariff clauses in your contracts with suppliers that can allow for price adjustments. Proactively negotiating for more extended agreements with fixed prices to shield yourself from sudden increases or shortages may give you a competitive advantage.

My favorite example: Airbnb

In 2007, Brian Chesky and Joe Gebbia needed to raise some money to pay their rent. They had an idea to rent out an air mattress in their apartment to people attending a conference because all of the local hotel rooms were booked.

They identified a need and a problem and were bold enough to come up with an idea to solve it. You know the rest of the story. Many people are looking for alternatives to hotels, and many people are willing to rent their homes. Voilà, a billion-dollar business was born.

My next favorite example: My company

I wanted to teach my kids about money when they were small, and at the time, I was a president of a bank in New York. I knew that it was essential to raise financially savvy children.

I schlepped my kids to 10 bookstores in Manhattan and couldn’t find any books on the topic of teaching kids about money. My 3-year-old daughter quipped, “Mommy, why don’t you just write the books?” So, Mommy did.

I found a big need and problem to solve and the topic is mainstream today, after I led the way. Earlier this year, my 29^th book came out: Get Off Your Assets: A Woman's Guide to Avoid Getting Screwed in Your Gray Divorce. I also advise other business owners on building their own billion-dollar companies. Visit me at www.TheCourageousCompany.biz.

This process is not easy, but if you want to build that billion-dollar business, you are going to have to find that need and problem and uniquely solve it … and know that there will be lots of nights when you will wake up in a cold sweat. Keep going (and maybe take a quick nap)!

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Many people look forward to retiring so that they can stop working altogether. But a growing number of Americans are rethinking their approach to retirement and are integrating work into it to some degree.

Fidelity's 2024 State of Retirement Planning report found that since the pandemic took hold, remote and hybrid work have redefined what retirement means to a lot of people. A good 57% of respondents say they plan to continue to work at least part-time in retirement, and 68% look forward to working for pleasure.

Working during retirement can look like many different things. It could mean taking a traditional part-time job, consulting in your former field, or joining the gig economy. But for some people, it could mean starting a business.

Starting a business in retirement can be a fulfilling experience that proves to be lucrative. But it’s important to approach the decision with caution.

Why start a business in retirement?

Many people struggle with retirement because once they leave their jobs for good, they lose their sense of purpose. Others have a difficult time not having a structured routine.

Starting a business helps address both of these concerns. Plus, it can serve as a nice source of backup income for retirees who are short on funds.

The Federal Reserve puts median retirement savings for Americans ages 65 to 74 at just $200,000 as of 2022, the last year for which it has this data. Many retirees manage to save more, as evidenced by the mean retirement plan balance of about $609,000 for that same age group. But for those who could use the money, owning a business could help fill a financial gap.

What are the risks of starting a business in retirement?

While starting a business could be a positive experience in retirement, there are some hiccups you might encounter. For one thing, your business may not take off.

The unfortunate reality is that 18% of small businesses fail within their first year, while 50% fail after five years. If your business doesn’t thrive, not only might it hurt you financially, but it might deal you a major mental blow.

There’s also the risk of ending up with a business that’s too time-consuming. When you own your own company, there can be many tasks to handle. If your goal is to strike a balance that has you working part-time in retirement, you may end up in over your head by taking on the role of business owner.

The financial reality of starting a business in retirement

If you decide to take the leap into starting a business in retirement, make sure to do your research beforehand, and to have an actual financial plan.

Opening a bakery may be something you’ve always dreamed of. But make sure you fully understand the work involved before moving forward, and that you have a well-thought-out business model. Otherwise, you might find yourself slaving away in a commercial space that costs you a small fortune to rent, only to end up starving for customers.

Along these lines, be very careful about the amount of money you sink into a business. You don’t want to dump half of your nest egg into a business that could potentially fail.

Kaveh Vahdat, Founder and President at RiseAngle, has 20 years of experience leading companies to major growth, and his advice is simple: “Never fund a business with money your livelihood depends on.”

Vahdat also says, “Retirement funds should never be used to fund or secure a business, because that money is typically irreplaceable. If the business fails, there is no time or earning runway to recover.”

He suggests focusing on ventures that require little to no startup capital. As an example, if you’re passionate about baking, rather than sign a lease for commercial space, try getting a license to work out of your home and see how that goes.

It’s also important not to count on income from your business right away. FreshBooks reports that on average, it takes businesses two to three years to become profitable. If your goal in starting a business is to generate needed income, you may be setting yourself up for failure. However, if your goal is to keep busy, then it may not be a problem if you don’t turn a profit for a few years.

Take a sabbatical and try out your business idea first

Of course, if you’re really passionate about a given business idea, one thing you may want to do is take a sabbatical ahead of retirement and test it out. If it proves lucrative, you’ll have a thriving venture to dive into once your career comes to an end. And if it flops, you’ll be able to pivot and come up with something new.

Get some perspective before starting a business

Finally, perhaps one of the most essential things to do before starting a business in retirement is to talk to people who have done it before. That way, you can learn from their wins and mistakes, and, just as importantly, have a more realistic idea of what you’re getting into.

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Tips, the extra wages that many customer service workers rely on to make ends meet, aren’t free money. They must be reported to the IRS. This can include cash or noncash payments that the customer voluntarily makes in addition to regular service fees or costs.

Typically considered a gratitude sign for services, tips can be a critical income source for service workers, often earnning minimum wage. Suggested tip percentages now range from 5% to 30%.

However, since tips are subject to taxes, that limits service industry worker earnings.

During the recent presidential election, the idea of exempting tips from federal taxes was proposed on both sides of the aisle and gained popularity among voters. Separately, Some states have also suggested ending tip taxes.

Given all of the confusion, here’s what you need to know about how tips are taxed in 2025.

What are tips?

Tips are optional payments a customer makes to a service provider and may be offered in different ways.

Tips may consist of the following payments:

• A cash tip received directly from a customer
• A monetary amount rendered through an electronic payment
• Non-cash tips, such as a ticket or coupon of monetary value
• Amounts received from other employees through tip pools, tip splitting, or other tip-sharing agreements

Are tips taxable?

Have you received at least $20 in tips for any calendar month of the year?

Then, yes, any tip amount at or above $20 is subject to federal income taxes because they are considered wages (aka: taxable income). Additionally, all cash tips received by an employee throughout the year are subject to Social Security and Medicare taxes and must be reported to your employer.

What counts as a cash tip? Cash tips include amounts received directly by customers and may include electronically charged tips (via credit or debit charges), literal cash, or amounts received by other employees under a tip-sharing arrangement. Workers must report cash tips to their employer.

What about non-cash tips? Tips delivered in another method that aren’t cash, but that have monetary value are considered noncash tips. These may include tickets to an event, coupons, and other goods of value that a customer may give an employee. Workers aren’t required to report noncash tips to their employer, however, they are still subject to federal income taxes.

What to do if you receive tips

If you receive tips, the IRS recommends you keep a daily record of all tips received.

As mentioned, tips are split into two categories: cash and non-cash tips. While non-cash tips don’t have to be reported to your employer, they still have to be reported as income on your tax return.

Cash tips must be reported to your employer by the 10th month following the month the tips were received.

While the IRS doesn’t require a particular form to report these earnings, when reporting cash tips to your employer the statement must include:

• Employee signature
• Employee’s name, address, and Social Security number
• Employer’s name and address (establishment name if different)
• The month or period the report covers
• Total tips received during the month or period

You can also use an IRS form that requires you to report the information mentioned, such as a Form 4070, Employee’s Report of Tips to Employer (available only via Publication 1244).

Tax Tip: Don’t include service charges as tips.

Service charges imposed on a customer’s bill are not considered tips. If you’re staying at a hotel, typical service charges may include cleaning fees, early booking fees, or security fees.

How to report tips on an individual income tax return

If tax time is upon you and you have unreported tips to your employer, you must complete an IRS Form 4137, Social Security Tax on Unreported Tip Income. Make sure to report any unreported tip income as additional wages on your Form 1040, Individual Income Tax Return, or 1040-SR, if you are an older adult.

What types of tips should I report on those forms? You should report non-cash tips earned throughout the year as well as any unreported cash tips to your employer.

At the same time, it’s your employer’s responsibility to include tip wages you’ve previously reported for the calendar tax year on your Form W-2. Some employers make sure to gather tip reports from their employees every month to avoid losing track of any extra wages earned by tax time.

Will tips become tax-free?

Some service industries such as hotel workers, waiters and waitresses, and bartenders largely depend on tips to make ends meet because their employers pay the minimum wage.

For instance, in Florida, the statewide minimum wage is $13.00 per hour in 2024. However, the minimum hourly wage for tipped employees is much lower – at just $9.98. For tipped workers, every penny counts to make a living wage.

Though the Sunshine State plans to raise the minimum wage annually through 2028, at their highest, tipped workers will have a starting wage of $13.98 in four years.

As reported by Kiplinger, during the 2024 presidential campaign, both Democratic nominee Vice President Kamala Harris and now-President Donald Trump proposed ending taxes on tips.

In summary:

• While some policymakers favor ending taxes on tips as it’ll allow employees to pocket more money, some critics argue that the exemption would result in a revenue shortfall of $150 billion to $250 billion over the next decade.
• Others theorize that the tipping debate will underscore another crucial topic: raising the minimum wage.

For the time being, taxes are still subject to tax at the federal level and in many states. However, stay informed in the upcoming months. It remains to be seen if Trump will revisit his promise to end taxes on tips during his new tenure.

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Long dreamed of becoming your own boss? Now may be a good time to take the plunge. Today’s tech advances make everything from marketing to invoicing more manageable than ever.

The Small Business Administration and other entrepreneur-focused groups provide a plethora of free resources to support your growth. And with interest rates on loans ticking down, borrowing cash to fund your vision is getting cheaper.

Whether you’re thinking about freelancing, consulting or opening your own restaurant, many of the initial moves you should make as you start a business are similar. By getting an understanding of what’s needed, you can preserve your financial security, avoid unnecessary headaches and set yourself up for success.

Here are the key steps to go from idea to execution.

Validate your concept

Make sure there’s a demand for your product or service.

“Know the difference between an idea the market wants or needs and an idea that is a personal passion or a hobby,” says Kira Chereé Cobb, founder of Entrepreneur Business Basics, an organization that helps entrepreneurs launch and grow their businesses.

Carolyn Katz, a mentor at SCORE, a nonprofit organization that provides free advice and resources for entrepreneurs, is a proponent of “customer discovery,” which means having open-ended conversations with potential customers.

“Instead of asking, ‘Would you like red socks or blue socks?’ or ‘Would you pay $10 or $12?,’ you ask, ‘How do you feel about your socks?’ ” she says.

Online tools such as Google Forms and SurveyMonkey are helpful for getting feedback. However, Katz recommends in-person discussions when possible. If you’re thinking about opening a food truck, for instance, hang around existing food trucks and chat with customers there.

During your research, don’t rely on friends and family for validation. Focus on those who don’t have a vested interest in your success, not people who will say, “Honey, that’s a great idea,” Katz says.

While you are investigating the viability of your concept, be sure to analyze competitors and track industry trends. One useful approach is a SWOT assessment, which helps you examine the strengths, weaknesses, opportunities and threats related to your idea.

Gavin Escolar, founder of The Chaga Company, used a SWOT analysis soon after discovering the antioxidant and anti-inflammation benefits of Chaga mushrooms during an extended trip to Alaska. Inspired by the health benefits he experienced, Escolar remained in Alaska, selling Chaga-infused foods and beverages in Juneau.

After realizing the harsh Alaskan winter weather wasn’t for him, he decided to return to San Francisco. Using the SWOT framework to evaluate the mushroom-selling potential there, he discovered a promising market. The analysis panned out, and he has been successfully running the company from there since 2018.

He sells his products at farmers markets, fungus fairs, pop-ups and corporate events, as well as online.

Review your personal finances

Even with the best idea, it can take months to make money. “Businesses that are profitable out of the gate are the rare exception,” says Katz, who has a background in banking and venture capital.

With that in mind, it’s critical to build a solid financial cushion — preferably enough to support you for a year — before you launch. At the same time, make sure your personal credit is strong, because you may need to borrow.

“Whether it’s an Office Depot store card or a business Mastercard,” loan issuers will initially rely on an entrepreneur’s personal credit record when reviewing credit applications, says Cobb, who is also an affiliate representative with the Kauffman Foundation’s FastTrac entrepreneurship education program.

Also, review the benefits your employer provides to determine what you’ll need to replace. Start by examining your pay stub or Form W-2 to get a general understanding of your income. Then, add in employer-sponsored benefits such as health care contributions and insurance discounts that you’ll pay if you’re not eligible to join a parent or partner’s plan. In addition, while employers pay a portion of your payroll tax contributions for Social Security and Medicare, self-employed workers must pay the entire 15.3% tax. (However, you can deduct half of self-employment taxes on your tax return.)

Without access to an employer-sponsored 401(k), you’ll also need to set up your own retirement plan, such as a Simplified Employee Pension (SEP) IRA or solo 401(k), to be able to save money pretax. If your employer provides a matching contribution to your workplace plan, you’ll also lose that when you leave.

Keep in mind, too, that while you are employed, you’re typically paid when you’re out for sick days, federal holidays and that annual beach vacation. When you’re running your own business, you won’t get those perks.

Cobb recommends thinking through some scenarios to fully comprehend how your finances will fare if your business doesn’t succeed. Consider testing your concept as a side hustle or part-time work before leaving your job.

Create your business plan

Think of your plan as a blueprint for what you want to achieve. It will outline how you’d like to structure, operate and expand your business. A solid plan helps you stay focused and gives potential partners, lenders and investors a clear view of your vision and business model.

Every plan is unique — there’s no exact formula — but most include an executive summary and mission statement, company description, details on products and services, market analysis, organization structure, operations plan, financial plan, and marketing strategy.

With so many elements, creating a business plan can feel daunting. But help is available. The Small Business Administration and SCORE have detailed templates that guide you through each step.

You can find the SBA template at www.sba.gov/business-guide/plan-your-business/write-your-business-plan; SCORE’s template is available at www.score.org/resource/template/business-plan-template-a-startup-business.

You can also get personalized assistance from advisers at SBA district offices, Small Business Development Centers (SBDCs) and SCORE. (For more on these resources, see the box on the facing page.)

Figure out the funding

There are numerous avenues to consider for financing your business, including self-funding (also known as bootstrapping), small-business loans or microloans, venture capital, grants, lines of credit, crowdfunding, hitting up family and friends, or a combination of these funding sources.

The SBA has a range of loan programs, but it doesn’t lend directly. Instead, it works with institutions willing to extend credit to start-ups because the SBA guarantees a portion of the loan.

Whether it’s an SBA-backed loan or a crowdfunding campaign, remember that what worked for a friend’s or colleague’s venture doesn’t mean it’s the right approach for you. The best kind of funding is very specific to the company and the situation, Katz says.

The Chaga Company’s Escolar got a $3,000 loan from his mother to launch his business in San Francisco, and he agreed to pay interest if he didn’t reimburse her within six months. He was able to pay her back in full before that condition kicked in.

Entrepreneur Arnyce Foster-Hernandez, who recently opened Featuring, a café that sells coffee, tea, pastries, natural fruit juices, and other items in the Harlem area of New York City, initially looked into securing a loan but says the process was time-consuming and disheartening. Instead, she self-funded, using $70,000 of her and her husband’s savings to open the café, and now relies on a business line of credit as needed.

In September, the Federal Reserve cut interest rates for the first time in more than four years, giving small businesses that rely on SBA loans a financial boost. Some 80% of SBA loans are tied to the prime rate, which means about 200,000 small businesses were set to see reduced loan payments starting in early October, according to the White House. While rates on SBA loans are negotiated between the borrower and the lender, the SBA caps rates based on the size of the loan. Currently, the caps range from 11% to 14.5%.

Despite falling rates, some lenders may remain cautious as they balance new loan requests with challenges such as outstanding loans from businesses that survived the COVID-19 pandemic but are now struggling financially, says Katz. Those institutions are trying to make new loans work while cleaning up old loans, which can leave them overstretched and more hesitant to lend.

A well-prepared business plan with detailed financial projections can strengthen your application. To explore your loan options, you can use the SBA’s Lender Match tool at https://lending.sba.gov/lender-match, which connects businesses with nearly 1,000 SBA-approved lenders. Those not matched to lenders are connected to a network of free advisers who can help prepare them for future approval.

Organize your business finances

To avoid legal and financial complications — and simplify record-keeping — separate your personal and business finances. That means using a dedicated bank account and credit card for your business.

You’ll also need a system to track income and expenses, such as QuickBooks or FreshBooks software, or even a well-organized spreadsheet. Cobb recommends working with a bookkeeper early, as an experienced professional can provide invaluable guidance on areas such as paying yourself, tracking profit and loss, and categorizing expenses correctly. “Instead of waiting until you have a lot of money, start with one in the first six months,” she says. “They can help you set up your finances the right way from the very beginning.”

An accountant is another expert to work with as soon as possible. A CPA can explain which expenses are deductible and help you take advantage of tax breaks. An accountant can also guide you through calculating estimated quarterly tax payments, so you’re not caught off-guard at tax time or penalized for underpayment.

“You have to be really cognizant of taxes,” says Aditi Dussault, associate administrator for the SBA’s Office of Entrepreneurial Development. “I know people who start as sole proprietors, don’t pay their taxes quarterly, and then are shocked at how much money they owe the government when they actually file.”

To find an accountant or bookkeeper, ask for recommendations from trusted sources, such as a financial adviser, your bank, or local small-business organizations. Check with peers, mentors, or members of your networking groups for suggestions, too.

Select a business name

Choosing a name for your business can be just as meaningful as naming your child — yet it comes with much more legwork. It’s fine if there are three other Emmas in your kid’s fifth-grade class. But in business, you want a unique moniker.

After brainstorming your name shortlist, run each contender through your state’s business-name directory, which is often found on the website for your state’s secretary of state, to see whether it is already taken. Also, search the U.S. Patent and Trademark Office website at www.uspto.gov to see whether anyone else has claimed the trademark.

Plug the name into Google and other search engines to see what pops up. If you plan to launch a website, see whether a domain name is available to match your preferred name. If the name you want is available, you can buy it through a domain registration company, such as GoDaddy.com. Check popular social media sites to see whether your business name is available as a username. If it is, nab it.

Decide on a business structure

Your business’s structure can affect everything from taxes to liability, so it’s essential to go about this with care and, often, some expert advice. Many entrepreneurs start as sole proprietors, but that could make you personally liable for the debts and obligations of the business, Dussault says. Operating as a limited liability company (LLC), such as a single-member LLC, can better protect your personal assets.

You can file for an LLC by completing the necessary documents on your own, using an online do-it-yourself service such as LegalZoom, or you can seek the assistance of a lawyer, accountant, or member of your local SBDC. Other structures include partnerships, S Corporations, and C Corporations. Ownership rules, liability, taxes, and filing requirements for each can vary by state.

Also, on the paperwork front, you’ll need to get the proper insurance, licenses, and permits for your business.

Build a support network

Most new business owners don’t realize how lonely working for yourself can be. “Friends and family don’t want to hear how you spent the last four days trying to figure out your point-of-sale system,” Katz says. “And you can’t really talk about the frustration of running the business to your staff or customers. So you need a support system.”

Mentors, peers, and coaches can provide needed counsel and emotional support. Although putting yourself out there can be awkward and intimidating, building a business network is crucial for success, as it can help you find potential partnerships, land new customers and develop ideas for business growth.

There are plenty of ways to build your network, from attending chamber of commerce mixers to joining LinkedIn groups in your industry. You’ll need to proactively connect with others in person, via e-mail, and on social media. “Get comfortable with being uncomfortable,” Cobb says.

There’s also a wide range of specialized support groups, Dussault notes, such as communities for women, veterans, LGBTQ people, and Asian American entrepreneurs. “You can get very specific” to find a community that suits you and your needs, she says.

While connecting with new mentors and advisers can be invaluable, networking with fellow entrepreneurs can help you to find resources, such as competent, affordable legal and bookkeeping services.

“So many people feel as if they have to do it on their own in order to be a real entrepreneur. And that is not true,” Dussault says. “You want to protect your secret sauce and not give out that recipe, but trading notes on advisers and other resources can help accelerate your growth.”

Promote your brand

Thanks to relatively easy-to-use design platforms such as Canva, DIY web platforms such as Wix and Squarespace, and the ability of artificial intelligence to create everything from logos to social media posts, there is an abundance of marketing resources for today’s entrepreneurs. The trick is to focus on what works best for you and your goals.

“You need to have a strategy that’s organic to you and that works with your business and with your style,” says Katz.

When Escolar decided to launch his Chaga mushroom company in San Francisco, he sought out his target audience, which led him to the local Mycological Society of San Francisco Fungus Fair. His products sold out, validating his idea.

“I’ve been a small business ever since,” he says.

In addition to those in-person sales, Escolar has a website that offers everything from Chaga-infused chocolate to tea. He’s also active on Facebook and Instagram.

Although not every owner needs to be on social media, some sort of digital presence is crucial. You don’t have to be a digital marketing guru or spend thousands of dollars to get your message out there, says café owner Foster-Hernandez.

“You can Google ‘How do I market my business on social media?’ and you will find all of these free resources that will guide you step by step,” she says.

Foster-Hernandez set up free business accounts on Instagram, Facebook, and TikTok. In addition, she took advantage of free business tools, such as listing her business on Google Maps and Apple Maps so that her café comes up during a search. She’s learning about Google ads and experimenting with boosting social media content through paid promotions.

“A lot of marketing is fairly simple if you just have patience with yourself,” she says.

Adapt and grow

From the moment your business idea first comes to you until your very last day running your business, you’ll need to continually pivot to respond to market trends, customer desires, new opportunities, and your own professional and personal goals. You’ll likely outgrow certain clients, need to make staff changes, and revise and revamp your marketing. It’s all part of the entrepreneurial journey.

“It’s okay to pivot,” says Cobb. “You might need to change a client, shift your service offerings or realize what you initially wanted to do isn’t what you want now.”

It’s much better to find the courage to change course than to stick with a concept that no longer works.

“A lot of businesses hold on to this first dream, but then they go down with the ship because the idea may have been good at the moment, but it’s not what the market wants in another five years,” she says, citing the collapse of video rental store Blockbuster after digital competitors entered the market.

Dussault echoes this advice, saying it’s often best to cut your losses early rather than hang on. Sticking with a failing idea just because you’ve invested a lot of money and time in it can ultimately cost you more in the long run.

“You’re going to make mistakes, and you’ll never be fully prepared for every type of failure,” Dussault says. “Having self-compassion is really important. Forgive yourself and move on.”

Celebrate your successes

Being an entrepreneur is often one of the toughest career paths you can take. Late nights and early mornings are common. On any given day, you can juggle the roles of administrative assistant, sales executive, marketing manager, and CEO.

With so much at stake, it’s crucial to recognize and honor all the wins. “As business owners, we celebrate the major things, like landing a big contract. But we often forget to appreciate the small accomplishments, like filing your taxes on time,” says Escolar.

“Running a small business is a marathon. If you celebrate yourself, it will help you and, ultimately, your business as well, since you are a reflection of your business."

Don't go it alone

There’s a wealth of free and low-cost resources for budding small-business owners. Here are a few to get you started.

Small Business Administration (www.sba.gov). The SBA provides a wide range of support, from financial assistance to marketing and sales strategies. Go to www.sba.gov/local-assistance and enter your zip code to find support in your area. Each state has SBA district offices that can assist with planning, starting and expanding a small business. For more info, contact the SBA Answer Desk at 800-827-5722 or answerdesk@sba.gov.

SCORE (www.score.org). Since its founding in 1964, SCORE has assisted millions of entrepreneurs. Originally known as the Service Corps of Retired Executives, it provides one-on-one mentoring, along with workshops and other resources through its network of 10,000 volunteers.

Small Business Development Centers (www.sba.gov/sbdc). SBDCs offer counseling, training, technical assistance and more. There are more than 900 locations across the U.S. — often at colleges and universities.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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If you enjoy going online late at night, chances are that, seemingly out of nowhere, ads will flood your screen about ways to buy a business with little or no money down.

“Most of the people behind these ads are cons, passing themselves off as gifted business coaches who want to share their insight — for a hefty price,” says Josh Tolley, nationally syndicated talk show host and author of Acquisitional Wealth.

My interview with him and article earlier this year, Four Big Mistakes to Avoid if You’re Buying a Business, yielded a bumper crop of emails and phone calls from the very people Tolley is referring to — all wanting me to interview them for a story.

“These people claim to be experts,” Tolley points out, “but not from expertise in running an actual business. Their entire purpose is to upsell you on more and more expensive coaching/seminars that are generally worthless but are intended to lead you to believe that making millions owning your own business is easy — if you follow their formula.”

How these scams suck you in

Why do so many people fall for these scams? Tolley says, “They appeal to that segment of the American population who realize they are not keeping up with inflation, or their retirement account isn’t going to work like they thought it would — so they are desperate for something. And these hucksters are giving them a little razzle-dazzle and milking them for tens of thousands of dollars.

“The initial come-on is a podcast with (an offer of) free content, such as ‘sign up now for my free newsletter on how to buy a business.’ Or, ‘sign up now for my free video on how to buy a business.’”

As Tolley describes, “If you want to know more, then you are encouraged to sign up for their ‘Mastermind Program’ that costs $5,000, $10,000 or $15,000 for a weekend.” And then if you want the elite-level skills, that will cost you as much as $30,000 or more, even $100,000.

Then, the reality is that once you attend these programs, since these coaches are not business professionals, they are not going to represent you like a broker, Realtor, lawyer or accountant would. And virtually all of them have never owned a business.

“Dennis,” Tolley notes, “I have met so many people who have fallen for these ‘learn all the secrets of buying a business’ scams, who have paid what they could have used as a down payment on a business but learned virtually nothing of practical value!”

Red flags to watch for

Now, you are probably thinking, What are the signs that I am about to get sucked into something I should avoid?

Tolley provides these answers:

• One course leads to more courses
• The person teaching the course does not offer the services of whatever it is they are teaching
• The person teaching the course has a track record of offering or teaching other courses on topics that are not related at all to the one they are pitching to you
• The “expert’s” social media posts are: “Look at me! I have mansions, fast cars, a private jet and yachts!”

“Notice how legitimate investment houses do not advertise that way,” Tolley points out.

Where do these business coaches come from?

So how does someone become a business coach? Many just read a book or attend a seminar and decide to do it. Or, as happened with one of Tolley’s former, short-term employees: He hired a firm to ghostwrite a book for him for $15,000 — he did not contribute to the book at all, but his name was on the cover as the author. A third-party company created the content, and a production company made videos and workbooks, and off he went, selling “his” product.

“The tragedy is that some of these ‘experts’ have become multimillionaires,” Tolley says. “We have followed their programs at hotels where they charge over $10,000 per person, and 300 people walk in! And what they teach is often just useless.”

What you should do if you want to buy a business

Tolley offers this advice for anyone thinking of buying a business:

• Avoid anyone selling these courses.
• Seek the assistance of a qualified and experienced mergers and acquisitions (M&A) brokerage.
• Don’t do it just because you’ve heard that it is a great way to get wealthy, even though it can be. Owning a business needs to be something you truly want, as you will be responsible for it.
• Make sure you understand both personal and business finances. If you do not understand the importance of deadlines, payroll, taxes and workers’ compensation insurance, you can expose yourself and your family to lifelong financial and legal ruin.
• It is wise to have some experience in the business world. Some of the best entrepreneurs are in businesses they don’t have experience in, but they know marketing, branding, advertising, sales, payroll, HR and leadership — they have the skills to run a business, but might not know the specifics of running this business.

Finally, ask yourself, “If CEOs with MBAs preside over companies that fail, how can I possibly succeed with my limited or lack of experience in the business world, just because I’ve attended these coaching seminars?”

Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Making the jump from a secure corporate job to entrepreneurship in our unpredictable economy is frightening. It can bring waves of anxiety, a restless mind at 3 a.m., self-doubt and a barrage of unanswerable questions about your choices and priorities. The jump represents such a massive change that most people cross the dream of “doing their own thing” off the list and don’t even consider it. This discomfort destroys people’s entrepreneurial careers, dissuading them from taking the plunge.

As someone who has navigated this path, I understand firsthand the challenge and the mindset shift required to bring a long-held vision to life. So if you’re an aspiring entrepreneur, let me share some practical advice from my own journey.

First, really listen to your gut. If you find the idea of leaving your current situation so deeply stressful, don’t jump off that cliff just yet. It might be the right decision to wait. Instead, do a little soul-searching to evaluate the source of the fear. And consider volunteering, doing some pro bono work with another startup where your talents and skills will be valued, and you can get a sneak peek at the startup world. That brings me to my next step.

Turn your fear into fuel

Don’t be afraid of the fear. What it takes to diverge from your typical path is the ability to harness your natural fear, specifically the fear of change, and turn it into a motivator. Fear can be converted into fuel and the drive to achieve what once seemed unachievable.

Anthony de Mello, an Indian Jesuit priest and psychotherapist, captured it correctly when he said, “We do not have a fear of the unknown. What we fear is giving up the known.”

Leaving the stability and structure of a corporate role for the unpredictability of entrepreneurship is a daunting, almost numbing prospect. This transition involves more than just a change in job title; it's a fundamental life paradigm shift. In a corporate setting, routines and established procedures provide a sense of security and sufficiency — when you’re done with your to-do list, you’ve done your job.

But in the startup world, unknowns are the norm, you’ve never done all you can do to advance your company, and success hinges on your ability to navigate uncertainties and push yourself and your co-workers well out of your comfort zones.

What does that take? A resilient mindset and an unwavering belief that you can find the right application of your core idea. The entrepreneurial journey involves frequent rejections and failures, and without confidence, these setbacks can be crippling.

The voice of experience

From my experience in leaving a major bank to launch our venture fund — as well as diving into diligence on prospective portfolio companies — I've learned that a founder’s self-belief can’t be brittle. It’s something we emphasize in the classes we teach for self-identified future entrepreneurs: You’ve got to be able to take a professional punch and get back up off the mat, again and again and again.

If you are working in corporate, your confidence could be very tied to your title, role and responsibilities within a well-defined structure. I certainly was guilty of my identity being wrapped up in my title and position. You would have thought my full name was Gayle Jennings O’Byrne JPMorgan the way it rolled off the tongue for years. But entrepreneurship doesn’t inherently come with much structure, and your responsibilities at the beginning are … everything. As the driving force of a startup, faith in your vision and abilities has to overcome the skepticism and rejection you’ll get from investors, sales prospects and potential employees. So the ability to inspire others and convey passion for your company will play a significant role in success. Basically, can you inspire people to join you in your dream, as risky, crazy, impossible and bold as it may be?

Corporate life often involves working within established systems and predictable frameworks. In contrast, entrepreneurship is characterized by a constant state of flux. The lack of fixed points on the map can be disorienting, and founders have to grow comfortable with that uncertainty and how to navigate through to get to more answers and stronger foundations for decision-making.

That ability to keep moving while managing unknowns is a tough skill for even the most successful corporate professionals. You are used to a different kind of urgency, one that has some parameters around it, internal, departmental deadlines and accountability. You can raise your hand and ask a question or bounce things around with others at the next meeting or work huddle. Not so when the deadlines and tempo are set by your clients, possible prospects or, in many cases, set by yourself because only you have the real insight into the big picture. The hustle, unpredictability and thinner resources of a startup just don’t allow for that. Founders have to embrace everything (i.e. the known, planned, unknown, unplanned, the big and the little) and be agile in their approach.

Learn to sell yourself and your vision

Departing from the corporate world will also require the ability to sell yourself and your vision. Big corporate brand names open doors and lend credibility. But you won’t have that luxury anymore as an entrepreneur. The doors that opened in the past simply because of the firm I represented or the title I held don’t necessarily open in the same way now that I’m out on my own. Now it's about my brand, my track record, my integrity, my network and the enthusiasm I can generate about what I am building. You’re starting from scratch and will have to sell yourself and your vision. This requires not only a good idea but also the ability to read audiences, pitch them effectively, listen and engage others and close deals.

One of the most significant barriers to progress for many entrepreneurs, especially women and people of color, is the need to be perfect. Perfection paralysis can be fatal in a startup. I've seen data that say perfectionists do not get more done than non-perfectionists, that they don't have higher-quality work. So, while a certain degree of perfectionism can motivate, excessive perfectionism often leads to paralysis and the very thing that entrepreneurs are afraid of — failure. The focus should be on launching, receiving customer feedback and iterating based on that feedback.

There are numerous resources available to new entrepreneurs, from books and podcasts to startup communities. Engaging with these resources can provide valuable insights and support. For example, listening to podcasts such as NPR’s "How I Built This" can offer inspiration and practical advice from successful entrepreneurs.

Transitioning from a secure corporate job to entrepreneurship is a journey fraught with challenges, uncertainties and myriad emotions. Ultimately, the journey from corporate life to entrepreneurship is not just a change in job title but a fundamental shift in mindset and approach. Embracing this change with confidence and resilience can lead to extraordinary success, fulfillment and financial reward.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Starting an online business can be attractive to budding entrepreneurs, especially as it means lower start-up costs and a broader reach compared to a traditional brick-and-mortar retail operation. Needing additional income during this time of higher housing, food and transportation costs could be added motivation to finally jump into business for yourself.

Not only is it possible to succeed in creating an online business, but it can be done for little start-up capital, said Steve Strauss, founder of PlanetSmallBusiness.com. Strauss sold one of his businesses, TheSelfEmployed.com, a site that helps people become entrepreneurs, to billionaire Mark Cuban and Zen Business in 2021.

“It’s going to take some effort and you’re going to have to make some mistakes, but people go into business every day,” Strauss told Kiplinger. “What do you find online? You find website after website after website of businesses. All those people figured it out. You can figure it out.”

He likes to tell the story of how Jeff Bezos founded Amazon in 1994. Bezos was a hedge fund employee who was tasked by his boss to research potential business opportunities on the internet. He found out that the web was growing at 2,300% a year and decided to jump into online selling.

“He started an online business by himself, with his wife, in his garage,” Strauss said. The rest, as they say, is history.

Compared to Amazon’s early days, today’s advanced digital tools make it easier to start an online business, with options for free or low-cost websites, ads and content creation. Now with ChatGPT and Stable Diffusion, you can have an AI assistant writer and artist at your fingertips, for free.

One key piece of advice to remember: start your online business on the side. Don’t quit your job until the business becomes viable, Strauss said, so as to minimize risk.

How to start

There are two general types of online businesses: ones that sell products and ones that sell services. A products business is more expensive generally because you have to maintain an inventory and take care of packing and shipping. A service business is better because the initial capital outlay can be as small as a couple of hundred dollars, Strauss said.

However, if you would rather sell products, there is a no-overhead way to do so: dropshipping. This is when you strike a partnership with a manufacturer to sell their products on a website or online store you create, using your brand name. The manufacturer takes care of the packing and shipping. The profit is split at least 50/50 although sometimes the manufacturer gets more, Strauss said.

But be mindful that the manufacturer can charge various fees and if the supplier is overseas, the shipping time may take weeks. It’s also good to order some of the products yourself to check out the quality beforehand. Dropshipping supplier sites to peruse are Spocket and Shopify’s Oberlo.

Come up with a good business idea

Identify opportunities around you or problems you can solve. For example, Eric Bandholz began writing a hobby blog about beards in 2012 to showcase that beards can be cool; they are not just for lumberjacks or hippies. He soon realized that the market for men’s facial hair was underserved. He launched a BeardBrand store on Shopify in 2013, selling products for beard care such as a special oil. Today, BeardBrand makes millions of dollars a year in sales.

Have you identified a niche you can serve? Perhaps you’re good at baking and realized that no one specializes in birthday cakes that cater to different ethnic groups, showcasing the colors and designs of their cultures. Follow your passion, but also make sure there is a market for it.

Besides e-commerce, Strauss said other business ideas could include becoming a social media manager for small business people who are too busy to handle it or don’t know how; working as a virtual administrative assistant; doing coaching or consulting work; creating an online course with the likes of Thinkific or Udemy; and other endeavors.

Marketing and set up on a small budget

The good news is that there are many ways to market inexpensively. Social media and Craigslist are two avenues. You can choose pay-per-click ads so you only pay when people click on your ad. Strauss also suggests striking a partnership with a business for which your website or product resonates and they can help promote you. Collect emails from people by offering them free content or other freebies, and market to them.

An easy way to set up and market your business is to open a store on Amazon, Shopify, Etsy, eBay and the like. They have templates to help you create your website and a host of tools to help you succeed. While you'll have to share your earnings with them, you'll also have access to their traffic.

If you want to set up an independent website, you can do so cheaply by using services such as Wix, Go Daddy and the like. Use templates for the website design or hire designers from Upwork, Fiverr or 99designs. Learn about search engine optimization from free online courses or on YouTube.

Need advice? Score.org (Service Corps of Retired Executives) offers free help from experts on topics from business planning to e-commerce and beyond.

Strauss also recommends setting up your own business legally and inexpensively as an S Corp. or LLC by going to Nolo.com or LegalZoom. Get an EIN (Employer Identification Number) from the IRS, sort of like a Social Security Number for business. Also set up a separate bank account under your business name. Make sure to separate your work and personal life so as to ensure any business liability does not affect you personally, Strauss said.

Go for it

After setting up your online business, give it at least six months to determine whether the business is viable, Strauss recommends. If it doesn’t seem to be doing well, consider pivoting to another online business. This does not have to be too difficult since your business is digital; after all, you don’t have to close down physical stores, sell equipment or the like.

Finally, “go for it. Take a risk on yourself. Be bold. You can do it,” Strauss said. “But the caveat is to be smart and prudent about it. Reduce your risk so that if it doesn’t work out it’s OK. Don’t quit your job to do this. When it becomes bigger than you thought, it can be your main hustle.”

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Thursday, April 1, 2021, 9 a.m. my paralegal, Anne, buzzed me: “Two of your readers – Seth and Mia – are on the line and need to speak with you right away. The husband is about to sign a lease for a pizza restaurant he plans to open, but his wife thinks he is completely out of his mind.”

I took the call and asked Mia why she was so worried.

“Seth is a long-haul truck driver and has never run his own business. We have considerable savings that he wants to put into this pizza restaurant that will be managed by his brother, who completed a culinary course while in prison for embezzlement!”

Is that correct? I asked Seth. It was, and he explained, “Pizza restaurants have done very well this past year, and I want to cash in now! My brother made a mistake – because of drugs and a gambling addition – but he is cured. He got all A’s in the pizza section of his prison course, so I trust him to do a good job.”

The couple were serious. This was not an April Fool’s joke.

I ran their story by Cyndi Hicks who “grew up in the pizza business” and owns several Rusty’s Pizza Parlors in Southern California. Her initial comment? “While I commend Seth for wanting to better their lives financially, I see him headed for failure.”

So, what does it take to lose your shirt – not to mention lots of dough – in the pizza business? Cyndi provided a by-the-numbers guaranteed way to fail.

1. Care only about the money. Lack passion for the restaurant business.

Consequences: People will see that you just don’t care about them. Your employees will feel your disinterest. Customers will sense that as well. Do not think that you can simply make a lot of money in it. You need to be onsite. If you are going to be in this business, it takes a lot of time and work.

2. Fail to keep consistent hours of operation.

Consequences: You will confuse your customers. Employees will resent having their hours cut and not have enough they can count on for a paycheck. If customers show up after a movie and you are not open, they will go somewhere else.

3. Have inconsistent portion size. Refuse to use scales to measure portions. Fail to show that you are concerned and observant of portioning.

Consequences: Customers will never know what they are going to get. Costs will go up without tight portion control. It is critical to use scales to measure ingredients and toppings. Left to the decision of the pizza maker, over-portioning will certainly result, especially when friends and family visit – employees will load up their pizzas! Or, under-portioning, which upsets customers.

4. Fail to have a good accountant, attorney, reputable payroll servicer and especially HR in your back pocket.

Consequences: You will not make good decisions, especially in the HR realm. Disciple, termination, promotion – do this incorrectly and you will face lawsuits.

5. Fail to keep the place clean, refreshed, clearing tables promptly, emptying trash cans. Unclean restrooms.

Consequences: Who wants to consume food in a place that is not clean? You will chase customers away.

6. Charge a premium price for an average, run of the mill pizza.

Consequences: Customers are not stupid! You will not have return business. Determine if you want a discount operation for people who seek the lowest price but not the best quality, or, do you want to serve the highest quality food, which will command a higher price to customers who appreciate the difference?

Quality and service will bring customers back. They go hand in hand. Customers are observant. They know if your price/quality structure does not add up.

7. Don’t know your ingredients, how to put them together and how to make a good pizza.

Consequences: You run the risk of that so-called experienced pizza maker you just hired is a complete incompetent and ruining your business. For anyone who has not been in the pizza business, it is so important to attend one of the “pizza schools” located all over the country. Some possibilities (although others can be found by reading Pizza Today magazine or PMQ Pizza Magazine):

• The International School of Pizza in San Francisco
• Napoli Culinary Academy in Sacramento
• Pizza University & Culinary Arts Center, Beltsville, Md.
• The North American Pizza and Culinary Academy located in Lisle, Ill.
• Pizza School of New York

Or, go to work for someone else at a good pizza restaurant and learn the business before opening your own restaurant.

Concluding our chat, Cyndi points out: “It is so important to work with your employees and encourage them to have a positive customer service attitude. That’s what it all boils down to – customer service. You want people to have a nice experience having a meal with friends and family and feel happy to return.”

Finally, what happened to our readers, Seth and Mia? Well, Seth’s brother violated the terms of parole and was sent back to the same prison, where he was welcomed into the culinary program as a teaching assistant! And truck driver Seth decided to save his money and purchase his own truck, “Because that is something I know.”

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

For many retirees, the next chapter of life isn’t about slowing down — it’s about finally launching the business venture they’ve spent a career dreaming about. However, transitioning from a solo career to a collaborative partnership requires more than just a shared vision and mutual respect. While a partnership can provide the capital and complementary skills needed to succeed, it also introduces a layer of complexity that can jeopardize both the business and your personal finances if not handled correctly.

Before diving into a new venture, it is essential to establish a clear framework for how the partnership will operate. From deciding on a legal structure and financing to determining who has the final say in a stalemate, the most successful partnerships are built on a foundation of transparency and clarity about roles and expectations at the outset.

By addressing potential conflicts — such as unequal contributions, health issues, or differing retirement timelines — before they arise, you can protect your investment and ensure your post-career business is a source of fulfillment rather than stress.

How to resolve an impasse is just one of many decisions you’ll want to agree on before establishing a business partnership. You should also discuss financing, business structure and location, other contributors, insurance and tax implications, valuing the company, and the possibility that one partner might want to step away from the business in the future.

“It’s easier to get married than to get divorced,” says David Levi, senior managing director for CBIZ, a national professional services advisor. “Spelling stuff out upfront is just huge.”

That said, it’s impossible to predict everything that might come up, and hard to envision the scope and future of the business when you’re just at the starting gate. Although you will want to touch on all the key issues, don’t lock yourself into rigid policies or negotiate so fiercely that you kill a promising business venture before it launches. It’s a shame when people “try to negotiate too sharp a deal or too comprehensive a deal. There needs to be some trust and ambiguity,” says John Emory Jr., president of Emory & Co., a business valuation and investment banking firm in Milwaukee, Wisconsin.

Plan for the Unexpected

Before launching a partnership, talk through your vision of the business, risk tolerance, timeline and what may need to evolve as the business grows. “It’s good to be aligned,” Emory says. “When they bring in someone like me, it’s often because one person wants to retire in the next couple of years and the other wants to work for another 10 years.”

Conflicts often arise from feelings of unequal contribution and defensiveness about underperformance, says Ray Parsons, 59, chief executive of Transcepta, a procurement and accounts payable platform that he co-founded with three partners. “Feelings of unequal contribution are perhaps the toughest problem to face because they involve a lot of ego for all parties,” Parsons says.

That’s one reason partners should understand and mentally prepare for the division of labor and goals to shift over time. “These are living, breathing documents,” says Levi, who advises partners to have an open discussion as things change and restructure compensation if needed. He’s seen situations where one operating partner does most of the work, but there’s no mechanism for buying the other partner out.

For example, if one partner has a health or personal issue that requires stepping back from the business for a year, the other partner should be compensated for pulling the extra load temporarily. “For that period while that difference exists, it’s got to be acknowledged,” Levi says.

Similarly, if one partner is much older and aims to retire sooner, the priority should be steering existing clients toward the younger partner to smooth the transition instead of drumming up new business

Raising Capital

Entrepreneurs often underestimate the capital needed for success, experts say. About 20% of new businesses fail during the first two years. Partners should agree on sources of financing and strategies for raising money in the future.

“I would really discourage going to the retirement funds, especially pre-age 59½ because you have a 10% penalty for premature distributions,” Levi says. “What people most often do is pound credit cards, because it’s the easiest thing to do, or home equity lines.”

Decide from now how you’ll finance the business. Do you both need to agree on taking out a business loan over a certain amount? If one partner has more liquid personal assets, is that person willing to lend to the business, and if so, on what terms would the loan be repaid?

“If you have banking or investment relationships, talk to those bankers about getting financing for the business,” Levi suggests. For businesses with substantial physical assets, a good option might be lease financing, in which a lender owns the assets but the partnership buys the rights to use them through ongoing lease payments. Or if your customers owe the business a large amount, you could sell those future accounts receivable to a factoring company that advances you a smaller amount of money now. “It’s kind of like a revolving credit line,” he says.

Business 101

Of course, partners must also agree on the foundation of the business. Discuss questions like: Where should you incorporate and be headquartered? What business structure is best? How much insurance should we buy?

“Errors and omission insurance, liability, and property and casualty insurance are a must. Sometimes key person life insurance is important,” to account for the death or disability of one of the partners, Levi says. Many startups, though, may not be able to afford all these policies initially, so check your personal umbrella policy to see if it covers errors and omissions in your business. Make a plan to acquire coverage in the future if you don’t have the budget now.

Investigate the differences among an LLC, S corporation and C corporation to decide which structure is best for you. An LLC generally offers the most flexibility, but profits are subject to self-employment tax (both sides of Medicare and Social Security taxes) if you also manage the company. If you anticipate reinvesting a significant amount of profits in the business, an S-corp provides the option of putting owners on a reasonable salary, so that profit isn’t subject to payroll taxes.

A C-corp functions as its own taxpayer. That means the owners don’t have to file tax returns in each state where the business operates, and the corporation may enjoy a lower tax rate. A C-corp, however, has the potential for double taxation when you do want to take out profits. Ask legal and tax experts which is best for your situation. “Don’t skimp on your organizing documents and don’t skimp on advice,” Levi says.

Another potentially thorny area is whether to allow the partners’ children to work in the business, which could have the unintended consequences of tilting the company’s center of gravity toward the partner with more kids. You don’t want to accidentally become a family business.

And don’t forget to discuss whether the business will offer a retirement plan. Although each partner may have different needs for sheltering income from tax, the business must treat both partners the same.

The Buck Stops Here

All the planning in the world won’t prevent conflict, so decide early on how you will handle disagreements and avoid stalemates. Will one partner ultimately get the final say? “Many lawyers advise their clients never to enter a 50-50 partnership” because of a deadlock if the two partners disagree, Emory says. Nevertheless, “I’ve seen lots of 50-50 companies work very well.”

You might decide that one equal partner always breaks the tie. Or perhaps you divide up areas of expertise so that each person has the final say in their wheelhouse, with any major financial decisions made together.

In a service business, some partnerships are structured more like an office share, where expenses are shared equally but profits are divided based on the business each person brings in and manages. “If I’m billing 40 hours a week and you’re billing 20 hours a week, we’re going to contribute to the common expenses, but at the end of the day I don’t expect to support your lack of productivity,” Levi says.

Often, it helps to separate whether an idea is a good one from how resources will be allocated to make it happen. Parsons discovered this when his company’s operations and engineering leaders were split on whether to provide more automation for a possible new line of service. “It became clear that each was really concerned with the impact on their already fully committed teams,” he recalls. Once each leader acknowledged that the initiative would be good for the company, they could then address the division of labor. In the end, both divisions chipped in, and the company added resources to fill the gap.

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Mobile business is awfully trendy these days, but the road to success can be pretty bumpy. Gas prices. Government regulations. Inclement weather. If you're going to run a business on wheels, you have to prepare for potholes, literal and otherwise.

To help you map a smoother route, we interviewed eight entrepreneurs who run their businesses from the drivers' seats of trucks, buses, vans and, yes, 16-person bicycles. These aren't your neighborhood ice-cream vendors. Jared Rosenthal sells paternity tests from a revamped RV in New York City. Chris Lower, owner of Big Truck Tacos in Oklahoma City, claims to pull in $3 million a year between his mobile taqueria and sit-down restaurant of the same name. While their businesses and business models vary widely, many of their challenges are the same.

Check out these eight mobile businesses, from boxing trucks to bicycle pubs, and see what advice their owners offer to other aspiring freewheelers.

Name: Who's Your Daddy?

Location: New York City

Start-up costs: About $10,000

Annual revenue: N/A, but it claims to turn a profit

Monthly gas bill: $2,000

On the road since: 2012

You might say risk is in Jared Rosenthal's DNA. The Bronx-based entrepreneur was the CEO of a $50-million company before he left to start his DNA- and drug-testing lab, Health Street. Soon he had an unconventional idea: What if he took the lab to the streets?

Who's Your Daddy? is a mobile DNA- and drug-testing lab housed in a retrofitted RV. From the inside of his office-slash-testing-site, Rosenthal can take patient samples, file paperwork and send the samples to a remote lab – for $79 to $599 a pop. Setting up the truck wasn't easy, and Rosenthal struggled to get a loan. But now, he enjoys a steady business at hospitals, jails, job fairs and accident sites across the tri-state area. "We see every possible situation you can imagine," Rosenthal says with a laugh. "I did a 90-year-old man's DNA test once. Rich, poor, every ethnicity and culture – we get everybody."

Operating costs are steep. In addition to paying for gas for the RV and its generator, Rosenthal shells out for frequent maintenance, weekly washings, $400 a month for insurance, employee salaries, and one or two parking tickets each day. In order to save money, he ends up doing a lot of menial tasks, such as driving and fixing the truck himself. "You have to tolerate the roller coaster," he cautions. "It's not always up, up, up -- it's up and down."

Name: The Boxing Bus

Location: Raleigh, N.C.

Start-up costs: $5,950

Annual revenue: $40,000

Monthly gas bill: $200

On the road since: 2005

Rick Harper ran a chain of successful gyms for two years before noticing a trend: While business at his boxing clubs and boot camps was pretty brisk, some customers wanted him to come to them. So he bought an old bookmobile for $1,000, installed a new sound system and some gym equipment, and took to the streets of Raleigh, N.C.

Most of Harper's business comes from regularly scheduled home visits, though about one-fifth of his clients are companies that hire the bus for employee use. Harper says it has been a challenge to convince some customers of the value of mobile fitness stations. His bigger struggle, however, is fluctuating gas prices. Adjusted for inflation, a gallon of gasoline cost $2.69, on average, in 2005, the year The Boxing Bus first hit the road. Since then, prices have risen more than 36%, to $3.68 a gallon.

Despite that needling concern, Harper says he turns a tidy profit. His advice to entrepreneurs: "Go for it," even if your business sounds a little far-fetched. "Do not let anyone destroy your dreams."

Name: Sterlings Mobile

Location: San Diego

Start-up costs: $150,000

Annual revenue: Too soon to tell, but $7,000 in most recent month

Monthly gas bill: $400

On the road since: 2012

Kush Kapila's switch from product manager to mobile-salon CEO was inspired by – what else? -- a bad haircut. Kapila figured he could improve on the hassle of scheduling an appointment at a salon, while also appealing to the busy professional set that made gourmet food trucks popular. Two years later, after hefty investments from Kapila's family, friends and business contacts, a silver Airbus equipped with its own generator, water tanks and three barber's chairs hit the streets of San Diego.

Unlike many freewheeling businesses, Sterlings Mobile isn't mobile all the time. The company partners with big corporations and office parks, then drops the Airbus off for a day or two each month. While that cuts down on gas, it creates other problems. Kapila says it's hard to market a business that only appears in customers' neighborhoods every once in a while. For that, he leans on the Internet: Facebook, Twitter, a sleek Web site and a handy scheduling app that includes calendar invites and e-mail reminders for busy professionals.

It's a little early to evaluate how well those techniques, and Sterlings Mobile, are doing. But according to Kapila, revenue has grown by about 30% in the salon's first five months – and he's grown a bit, as well. "There is a solution to every problem," he says. "Each problem you solve becomes a barrier, making it harder for someone else to do what you are doing."

Name: Big Truck Tacos

Location: Oklahoma City

Start-up costs: $115,000

Annual revenue: $600,000 (trucks only)

Monthly gas bill: $200 per truck

On the road since: 2009

If you want to own a food truck, you've got to go the distance. Chris Lower drove all the way from Oklahoma City to Los Angeles to pick up his first vehicle, a $15,000 truck he bought sight-unseen on eBay. Lower already had a long history in the brick-and-mortar restaurant business, owning several successful OKC restaurants before going mobile. In fact, Big Truck Tacos still maintains a sit-down presence, which may serve as a lesson for aspiring food truckers -- Lower says 80% of his revenue still comes from his conventional restaurant space.

So why even bother with trucks? It helps that, in Oklahoma, at least, the market isn't particularly crowded. Big Truck's novelty (and of course, its tacos) have propelled it to local and national fame, with more than 25,000 Facebook followers and a splashy appearance on the Food Network. Plus, Lower adds, the trucks provide flexibility that a fixed restaurant never could.

That doesn't mean it's been entirely smooth driving, of course. "Most locales don't really know how to deal with the new phenomenon of food trucks," Lower says. "A small town near us asked us to apply for zoning, just like a new restaurant building would. Crazy!" For Lower, though, it's been worth the ride(s). "I have opened and operated two of the best restaurants in the Oklahoma City metro area," he says. "But nothing as funky as the taco business."

Name: The Flower Truck

Location: Los Angeles

Start-up costs: $15,000

Annual revenue: N/A (declined to divulge)

Monthly gas bill: $300

On the road since: 2011

Retail space in trendy Santa Monica can run as much as $15 per square foot, but in her mobile flower shop, Jenifer Kaplan never has to worry about rent. The Flower Truck, a converted ice cream truck that Kaplan found on Craigslist, picks up flowers at a wholesale market every morning and cruises around Venice, Santa Monica and Beverly Hills, selling bouquets to passers-by.

Kaplan started the business with a $15,000 investment and a little decorating help from her friends. After finding the truck, she spent two months repairing and retrofitting it before hitting the road on Valentine's Day 2011. Though Kaplan is coy about her revenue, the truck has enjoyed an abundance of local press and a packed summer schedule. It makes frequent appearances at street fairs and farmers' markets, as well as at private events, such as weddings and business functions. The best part of running a mobile business, Kaplan says, is that "you can go to the customers rather than waiting for them to come to you."

But it's not all roses for The Flower Truck. Kaplan says it's difficult to find a good, profitable route. And for a mobile business, April showers often result in fewer flower sales. But Kaplan says her love for her work gets her through it. "Choose something you have a passion for," she advises other entrepreneurs. "Even when sales are slow, you'll still have a good time."

Name: Diggers' Mirth

Location: Burlington, Vt.

Start-up costs: $4,700

Annual revenue: $5,000

Monthly gas bill: N/A

On the road since: 2009

Organic produce is usually left to upmarket grocery chains and bourgeois farmers' markets. But the people behind Diggers' Mirth, a collective farm in Burlington, Vt., thought a truck could change that. "We'd seen people sell their vegetables off of trucks in other countries," says Hilary Martin, one of the co-owners of the farm. "I think we reach a wider cross section of our community by heading into the streets."

Because of its civic mission, the Diggers' Mirth truck focuses less on business objectives -- and turns less profit -- than many mobile businesses do. The truck operates only 11 weeks out of the year, selling at two farmers’ markets, wholesaling to local stores and restaurants, and wheeling through low-income neighborhoods in Burlington's Old North End. In those neighborhoods, the truck sells its crop at wholesale prices, and it always gives away watermelon slices.

Still, Diggers' Mirth has a pretty smart thing going on. Overhead is low – gas, licensing and debit fees are the truck's only expenses – and the farm generates revenue when the truck does not. "Keep it simple," Martin says, "and make sure you're having a good time."

Name: AZ Mobile Tanning

Location: Phoenix

Start-up costs: $20,000

Annual revenue: Less than $75,000

Monthly gas bill: Varies month to month

On the road since: 2011

Alison Carpenter didn't have much start-up capital for her mobile spray-tan salon, but she did have a great idea – and a resourceful, do-it-yourself attitude. She and her husband gutted and redecorated a 13-person shuttle bus themselves, tearing out seats, laying laminate flooring, and installing cabinets and countertops by hand. Three months and $20,000 later, the business was up and on the road.

The drive hasn't exactly been easy: Carpenter says she struggles in a down economy, when many consumers cut back on luxuries such as tanning. She also can't predict expenses, such as gas, from day to day because the "tan van's" daily mileage varies based on where she drives for private parties, home visits and other events. Despite the vehicle's measly ten miles per gallon – and the unsteady price of gas -- Carpenter is glad she went mobile. "I wanted the flexibility to go out into the community and find the business, instead of hoping and praying they would find me," she says.

Has that strategy paid off? Not quite as much as she hoped, Carpenter says. But she's convinced that with a little more time and hard work, the van will turn a bigger profit. "In my mind, tenacity equals success," she says. Those aren't the only factors in her business formula. Carpenter also recommends exhaustive research, including interviewing other mobile business owners, before hitting the road yourself.

Name: PedalPub

Location: Minneapolis-St. Paul, Minn.

Start-up costs: $55,000

Annual revenue: $1 million

Monthly gas bill: None

On the road since: 2007

By day, Eric Olson is a business professor at Normandale College. By night, he's a home-brew enthusiast and half the team behind PedalPub, a bicycle bar that runs – you guessed it – on wheels.

Olson first saw the zany 16-person bikes when a fellow home-brewer sent a picture back from Europe. Olson liked it so much that he and friend Al Boyce contacted the Amsterdam-based bike company and ordered one of their own for stateside use. Initially, Olson organized scenic tours and pub crawls around the Twin Cities, but as word got around, so did his business. PedalPub now has 12 bikes and 19 licensees, all managed from Olson's home office. Each of those bikes turns a healthy profit, he says: 240 tours per season, $350 per tour.

Like the business professor he is, however, Olson warns other entrepreneurs not to expect a profit too quickly. "Plan that your business won't make money for the first three years," he says. "Figure out how you'll pay your personal expenses." He also advises against taking out a loan if you can save some start-up capital yourself, and he recommends turning to business organizations such as SCORE for help and mentoring. All that hassle is worth it, though: "My work pays off for me," Olson says. "Not for someone else."

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America's health and fitness kick -- partially a response to mounting concerns about obesity, bad eating habits, and high health care costs -- is fueling solid growth opportunities for franchises that focus on healthy living and well-being.

Health club memberships will be up again this year after climbing 3% in 2011 and nearly 11% the year before. It's not just gyms. More and more Americans are shelling out for the services of personal trainers, nutritionists, and massage therapists, as well as for fitness apparel and gear, vitamins and more.

New players in the health and fitness field are finding interesting niches alongside established clubs such as Planet Fitness and Jazzercise, for example.

Here are eight promising newcomers flexing their muscles, most on the scene in just the past few years.

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QUIZ: Test Your Start-Up Know-HowFast-Growing Franchises with Staying Power

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Get in Shape on a Fitness Vacation

Laid off or having trouble finding a job? Tired of working for somebody else and looking to start a business of your own?

Being one's own boss is the dream of many Americans. But few have the wherewithal to come up with a viable business plan and the start-up money needed to be successful. That's where franchises come in.

Sure, buying into a franchise with a well-known pedigree can be daunting: Many top brands require a lot of capital up front and a strong business background.

But we’ve found eight growing franchises that have relatively low start-up costs and are available to first-time business owners. All provide essential services that are likely to remain in demand through good times and bad. And most can be run from home.

Product/service: Nonmedical senior home care

Franchises in the U.S.: 609

Growth in franchises: 8.9%

Net worth requirement: $100,000

Royalty: 5%

Franchise fee: $39,000

The need for senior care is expected to rise with the aging of baby boomers. Omaha, Neb.-based Home Instead provides assistance to seniors who want to remain independent and in their homes. Franchisees help with myriad tasks, ranging from opening mail to trips to the doctor, the store or the nail salon. Home Instead "CAREGivers" also work with clients in assisted living and nursing homes, as well as with Alzheimer’s patients. The franchise, operating since 1995, has expanded globally, providing services in 14 countries outside the U.S.

If providing companionship and nonmedical care to seniors appeals to you, Home Instead Senior Care provides a strong level of support to franchisees just starting up.

Product/service: Supplemental education

Franchises in the U.S.: 262

Growth in franchises: 106%

Net worth requirement: $75,000-$80,000

Royalty: 10%

Franchise fee: $27,500

If you like numbers and working with kids, Mathnasium may be worth a look.

With local school districts throughout the country trying to cut costs, parents are turning to outside sources to supplement their children’s education. The private tutoring sector grew nearly 40% during the recession, demonstrating that parents will spend on their kids even during tough times.

Mathnasium tutors children year-round, exclusively in math, both in after-school sessions and on the weekends. The centers work both to engage kids and help them to boost their overall math skills by teaching concepts ranging from basic math to pre-calculus. Los Angeles-based Mathnasium differs from many other tutoring franchises because it specializes in one subject. The firm has been franchising since 2003.

Product/service: Home and office cleaning

Franchises in the U.S.: 1,251

Growth in franchises: 0.2%

Net worth requirement: $60,000 ($15,000-$20,000 in liquid assets)

Royalty: $80 flat per month

Franchise fee: $28,900

With a promise to clean carpets fast, Heaven’s Best eschews the typical water-extraction approach, relying instead on its own "dry in one hour" technique. Franchisees also clean upholstery, area rugs, leather, tile and grout, and hardwood floors in private homes and commercial establishments. Franchises from the are Rexburg, Idaho firm available in the U.S., Canada and England.

Franchisees benefit from a low fixed royalty rate that allows them to keep more money in their pockets. The $28,900 franchise fee also includes all basic costs, such as equipment, training, supplies and cleaning solutions. But franchisees must own their own white cargo van (model year 2000 or later) and buy cleaning products from the franchisor. While the business can be run by one person, many successful franchisees hire a team of employees to operate several vans in their area.Heaven's Best has been franchising since 1983.

Product/service: Restoration of plastics and leather

Franchises in the U.S.: 100

Growth in franchises: 127%

Net worth requirement: $100,000

Royalty: $550/month, commencing in the seventh month

Franchise fee: $65,000

Given the tough economy, more and more people opt to repair or refurnish their furniture and other belongings instead of shopping for replacements. The trend favors a franchise like Fibrenew, which restores plastics, vinyl, leather, fabrics and upholstery in cars, homes, boats, planes and commercial buildings.

The Canadian company, based in Calgary, Alberta, provides training, tools, chemicals and equipment, and franchisees sign a five-year contract that gives them exclusivity in a specific territory. They've been franchising for more than 25 years.

Product/service: Pet sitting and dog walking

Franchises in the U.S.: 165

Growth in franchises: 11.5%

Net worth requirement: $25,000

Royalty: 5% and 1.5% brand development fee

Franchise fee: $15,000 for a 50,000-household protected territory

Recession or no recession, people love their pets, and will pay good money for their care, including shelling out for walking and sitting services when they’re away.Fetch! Pet Care franchisees take care of all kinds of pets — dogs, cats, birds, even spiders. They aim to have background-checked walkers and sitters available whenever pet owners need them. The Walnut Creek, Calif.-based firm also provides services such as puppy training and yard cleanup.

Besides getting the chance to bond and play with lots of critters, franchisees can operate from their homes with a flexible work schedule. And the pet care industry continues to grow as Americans work longer hours, needing help to keep Scruffy and Chuckles happy at home. Fetch! has been around since 1994.

Product/service: Youth sports

Franchises in the U.S.: 133

Growth in franchises: 35%

Net worth requirement: $100,000

Royalty: 7.5% of gross revenue

Franchise fee: $19,900

i9 Sports organizes local sports tournaments, leagues, after-school programming and camps. Franchisees are in charge of coordinating logistics for specific neighborhoods or other geographic areas.

Among the inexpensive, extracurricular activities offered: flag football, basketball, soccer, cheerleading, lacrosse, baseball/softball, golf, volleyball and hockey. The franchises can be home-based, saving their operators time and money while also providing flexible work hours.

With many local governments strapped for revenues and forced to cut back on recreation programs, i9 Sports, in business since 2003, is well-positioned for growth. There are already franchises in 25 states. The Tampa, Fla.-based company offers national and regional media/advertising support, initial training for new franchisees, continual refresher courses and informational webinars.

Product/service: Pizza, calzones and sandwiches

Franchises in the U.S.: 220

Growth in franchises: 10%

Net worth requirement: $100,000

Royalty: 3%

Franchise Fee: $15,000

Simple Simon's serves pizza, calzones and sandwiches in a casual kid- and family-friendly dining environment. Such low-cost food franchises have done relatively well during the downturn: alongside burgers, pizza is the most popular food to franchise.

What sets Simple Simon's apart? For one, its franchising fee is way below those of other fast food restaurants. Moreover, its franchising requirements are more conducive to newcomers. Unlike many of the larger restaurant franchises, it doesn’t require its would-be franchisees to already own other restaurants.

Product/service: Energy auditing and conservation

Franchises in the U.S.: 51

Growth in franchises (2009-11): 350%

Net worth requirement: $100,000

Royalty: $500 flat per month for the first two years, then $800 per month

Franchise fee: $29,900

With high heating and cooling costs and growing consumer interest in energy conservation, Pro Energy Consultants shows homeowners and commercial landlords how to lower their monthly utility bills.

The Cleveland, Ohio-based franchise does energy-use audits to help people better understand the energy needs of their homes and businesses, as well as how to save money with moves such as replacing windows or insulating against drafts. Franchisees also conduct thermal scans in workplaces, aimed at preventing electrical fires and meeting environmental safety codes.

Franchisees are provided with marketing assistance and also are trained to present informative energy-saving seminars in their communities, adding to their visibility and reputation. Pro Energy has been franchising since 2008.

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Have you had it with the weak job market? Tired of working for someone else? Want to start your own business but you're low on cash?

If you answered “yes” to any of the above questions, you’re not alone. The number of people starting businesses at home -- “homepreneurs” -- is rising steadily. In fact, more than half of all small businesses are now run from owners’ homes.

It's tough out there. But here are ten reputable franchisors that have either grown their businesses or held their own in one of the worst economies in decades. Profits vary depending on the number of clients, hours of service and variety of services offered. See if one of these franchises might be right for you.

By Neema P. Roshania

Product/Service: Dance fitness classes

Headquarters: Carlsbad, Calif.

Franchises in the U.S.: 6,627

Growth in Franchises (2006-2010): 16%

Net Worth Requirement: $0

Royalty: 20%

Franchise Fee: $1,000

www.jazzercise.com/

Jazzercise’s innovative and affordable workouts make it a popular exercise option for many clients even during difficult economic times. Running the business end from the home is fairly straightforward, but operators typically rent space at a church, meeting hall or other nearby location for the dance classes.

Product/Service: Business consulting and coaching

Headquarters: Las Vegas, Nev.

Franchises in the U.S.: 445

Growth in Franchises (2006-2010): 66%

Net Worth Requirement: $100,000

Royalty: $1,800/month

Franchise Fee: Varies

www.actioncoach.com

Business training and consulting are the hallmarks of this franchise, which is seeing a robust business as many firms struggle to stay afloat.

Product/Service: Commercial cleaning

Headquarters: Addison, Texas

Franchises in the U.S.: 9,375

Growth in Franchises (2006-2010): -6%%

Net Worth Requirement: $0

Royalty: 10%

Franchise Fee: $10,000 minimum

www.janiking.com/

Jani-King’s commercial cleaning franchises provide janitorial services for office buildings, hotels, stadiums and retail buildings. Such operations can be easily run from home.

Product/Service: Shrub and lawn care, pest control

Headquarters: Holmdel, N.J.

Franchises in the U.S.: 465

Growth in Franchises (2006-2010): -5%

Cash Liquidity Requirement: $40,000

Royalty: 10%

Franchise Fee: $25,000

www.lawndoctor.com

The company offers lawn care and pest control for commercial and residential properties -- a popular service with people too busy or too tired to devote hours taking care of their yards. An aging U.S. population should buoy this service, particularly as more and more older folks opt to stay in homes where they have lived for decades.

Product/Service: Nonmedical in-home care

Headquarters: Cincinnati, Ohio

Franchises in the U.S.: 650

Growth in Franchises (2006-2010): 8%

Cash Liquidity Requirement: $30,000

Royalty: 4%-6%

Franchise Fee: $35,000

www.homehelpers.cc

Aging baby boomers are creating a growing market for such care. Franchises like this one offer in-home care for the elderly and disabled as well.

Product/Service: Disaster insurance/restoration

Headquarters: Gallatin, Tenn.

Franchises in the U.S.: 1, 521

Growth in Franchises (2006-2010): 16%

Net Worth Requirement: $100,000

Royalty: 3%-10%

Franchise Fee: $41,000

www.servpro.com

Servpro works with insurance companies to clean up and restore properties in the wake of a fire, flood, severe weather or biohazard damage. Their services are offered to both residential and commercial clients.

Product/Service: Professional tools and equipment

Headquarters: Kenosha, Wis.

Franchises in the U.S.: 3,262

Growth in Franchises (2006-2010): 6%

Net Worth Requirement: $30,000

Royalty: $102/month

Franchise Fee: $5,000 minimum

www.snapon.com

Franchisees offer a variety of tools for uses in the home as well as on the job. The business can be run from home, and includes use of a Snap-on Tools truck to offer its products to customers.

Product/Service: Printing and promotional materials

Headquarters: Cleveland, Ohio

Franchises in the U.S.: 700

Growth in Franchises (2006-2010): 23%

Net Worth Requirement: $100,000

Royalty: 6%-8%

Franchise Fee: Varies

www.proforma.com

Proforma makes a business out of other businesses. It supplies print and promotional materials that help clients publicize their brands and increase sales.

Product/Service: Plumbing and draining

Headquarters: North Billerica, Mass.

Franchises in the U.S.: 480

Growth in Franchises (2006-2010): 47%

Net Worth Requirement: $25,000

Royalty: Flat fee per month based on population served

Franchise Fee: $4,000 minimum

www.rooterman.com

Recession or no recession, homes everywhere will always have plumbing and drainage problems, leaving franchises such as Rooter-Man with lots of prospective customers.

Product/Service: Commercial cleaning

Headquarters: San Mateo, Calif.

Franchises in the U.S.: 1,734

Growth in Franchises (2006-2010): 300%

Cash Liquidity Requirement: $2,800-$9,000

Royalty: 5%

Franchise Fee: $7,650-$37,000

www.vanguardcleaning.com

Vanguard Cleaning Systems provides janitorial and commercial cleaning services for offices, daycare facilities, gyms, etc.

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