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Retirement is a time to explore. For some, that means diving into hobbies. For others, it means part-time work. Why not combine the two, turning a lifelong passion into a source of income?

If you think your handiwork could be a moneymaker, make a plan. Here are five things every new business should consider.

Did You Know?

People in their fifties and sixties start businesses at nearly twice the rate of people in their twenties.

Check Your Start-up Costs Start-up costs are the expenses you’ll have to pay before a new venture begins to make money. Make a list of any equipment and supplies you’ll need to buy. Then think of other likely expenses, such as marketing and promotion. It’s important to fund your new business without dipping into your retirement savings.

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Know Your Target Market As a hobbyist, you probably have a sense of your target customers and what they will be willing to pay. Now think about what benefits you’ll be able to offer those customers that are different from your competitors. What would make your business stand out? Will you compete on price, quality, service, or something else entirely?

Answer the Big Questions Before you leap into a cash investment, make sure your business will help rather than hinder your retirement. What ongoing expenses will your business require? How long will it take for you to cover these costs and recoup your investment? Also ask yourself about the personal costs. Will your venture demand more time than you’re willing to invest?

Find a Structure That’s Right There are pros and cons to different types of business entities (i.e., a sole proprietorship, partnership, LLC, S Corporation). Consult a lawyer or CPA to find the one with the right tax and legal protections for you.

Draft a Business Plan Congratulations! If you follow the above four steps, you’re well on your way to making a business plan. Whether you intend to bankroll your business yourself, seek a loan or attract investors, you’ve got to formally write out your vision. Include a description of the company, its goals, and the competitive landscape. Then clarify all the money requirements: investment and operating costs, potential revenue streams, and what it takes to make a profit. Websites like SBA.gov and Score.org offer business planning templates. Good luck!

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It’s not just any business, it’s your business. Allstate Small Business Insurance can help you learn about protecting your small business.