Have you sat in your comfy chair for too long? Have you watched all the college football you can watch? Are you bored out of your mind?
These are all common things that happen to people after they retire. So why not start a business?
Texas has the best business environment to start a business. You can start a business to do something you love or to help your community or by simply making more money.
Listen now to discover how you start and run a business in Texas!
Show highlights include:
- The “WalletHub Recommendation” explains why you should start a business ([1:12])
- Why talking about business at Thanksgiving dinner brings your family closer together (and you can come up with some new marketing strategies too) ([3:31])
- How thinking about your childhood lets you discover a problem to solve that can be monetized ([4:41])
- Why watching Shark Tank helps you figure out which type of business you could to start (even if it is as simple a drawing cats) ([5:38])
Transcript:
If you’re about to transition into retirement, I don’t want you to retire. I want you to pivot and do something great
Do you want a wealthy retirement without worrying about money? Do welcome to the Retire In Texas Podcast, where you will discover how to enjoy your faith, your family, and your freedom in the state of Texas. And now here’s your host, financial advisor, author, and all around good Texan, Darryl Lyons.
([00:29]): Welcome to retire in Texas podcast. My name is Darryl Lyons. I’m the co-founder of PAX financial group in San Antonio, Texas PAX financial group is the sponsor of this program. Visit backed financial group.com. And before I get started, I need to share the legal disclosure. This material contains general information only and is not intended to provide specific investment tax or legal advice. Visit PAX financial group.com for more information, investment advisory services offered through PAX financial group, LLC. Okay, so this shows fun. I like it because I’m a small business owner and I get it. If you can’t sit still and you retire and you need to start a business, this is the right show for you. You’ve definitely listened to the right one. I love Texas as a place to start a business. The business environment is awesome. Wallet hub did a study as 2020 study and said, Texas is the place to start a business.
([01:17]): If you’re going to start a business, you want to do it in Texas. And the way they looked at it was I think, a very good healthy methodology. For example, they looked at the business environment and they had a scoring. It said you get a good score. If the business environment is a healthy business environment, and that includes are you overworked? What is the average length of a workweek? And they looked at startups per capita. Are there a lot of startups per person? And they looked at fast-growing firms, according to tech, fast, a magazine, a publication. How many companies are from that particular state that are in this fastest-growing firms list. So startups, workweek, fast-growing tech firms, that all, and a few other factors that all makes a good business environment and Texas is rocking it. Then they also looked at access to resources and often think of, well, that means banks or venture capitalist dollars or money to pour into businesses.
([02:27]): And that’s true, but it also means do you have access as a business owner to a working age population? Because you know, we all know that you need good people. I mean, that’s the most valuable asset to a business owner. And then finally, the other factor that wallet hub looked at when they were ranking states again, Texas rocked it. The business costs, what’s the cost of living. What’s the labor costs, you know, hiring people, is it too expensive? Then the office space affordability, you put all those things together and you get Texas as the best place to start and run a business. And I would agree. And look, if you’re retiring, you may not want to start a complex business and I’m going to dive into different strategies, but just think about it collectively. You’ve got a good business environment. You can start a lifestyle coaching business and find clients in Texas because while it hubs said, so wallet hub said Texas is a good place to do business.
([03:33]): So I’m excited to talk about business as your host. Today, I have a business, my parents have a business fire and safety business. My brother has a business, a technology, virtual reality business, my sister photography business. So around the Turkey dinners, we talk business, we talk marketing and strategy and growth and things like that. So love business. I think everyone should start a business to be candid. Everyone should. And it’s never too late for you to, if you think, oh, you know, I’m too old, I can’t do it. There’s breath in your lungs. Just do it. We know Colonel Sanders didn’t start KFC until he was 62. I don’t want any excuses. You can start a business. And it’s just thinking through some things and I’m going to help you think through some things today. There are three steps that I need you to take. If you’re going to start a business in Texas.
([04:22]): So hear me out on these three steps. First of all, I need you to find a problem to solve. See business is all about solving people’s problems at a profit. That’s it solving people’s problems at a profit. So if you think you’re going to start a business and you haven’t found a problem to solve, you’ve kind of gone out of order here. You need to find a problem to solve before you start a business. But that won’t be too hard to find because it’s in your childhood story somewhere along your life. And it could be childhood. It could be somewhere else. There was a problem and you solved it or you wanted to solve it. But something in your past will give you the momentum to be the business owner that you’re called to be. And no one’s unique. Life story is wasted. If you, at one point, your life loved fixing cars, then why not be a mechanic?
([05:19]): Why not start an automotive mechanic business and be creative with it? Why not? I mean, you can even be a consultant if you love woodworking because you’re a boy scout and just love it. Why not create cutting boards and sell them at the flea market? Yeah. You may not get rich, but there is inherent value in work. Don’t be too concerned or afraid of even jumping into franchise. Maybe you like computer coding and you want to own a code ninja franchise. There’s plenty of opportunity to coach others. Maybe you’ve got something in your heart that says, I want to lead other entrepreneurs. Why not be a, why not buy a Vistige franchise? That’s Percy 12 franchises or coaching programs. I know one guy who retired and started an AC business real estate. You could do bed and breakfast. You love cooking, or you can just flip homes or just do some vacation rentals.
([06:16]): You’d be a fitness trainer. It support Darrell. These are good ideas. I’m still struggling. Here’s what I’m gonna tell you to do. You need to watch shark tank. There’s a guy on there that can draw. He sings a song and says, I will draw a cat for you. He draws cats for people. That’s his business. I have one of them. I have one of his drawings in a frame that was a gift to me. It’s a cat drawing. You can buy cat drawings from this guy. That’s what he does. Watch police watch shark tank. Just watch it. Just watch. If you’re struggling with ideas, you’re like Daryl, you gave me some thoughts, but I’m really struggling to just shark tank. There are so many stinking ideas on there. Now, when you start a business, there’s three types of businesses that really are not talked about a lot.
([07:01]): And you need to ask, Stephen Covey said begin with the end in mind. So let me tell you those three types of businesses. There’s a lifestyle business. This lifestyle business says, look, I’m not, I don’t want a bunch of employees. You know, if I could do a virtual assistant from the Philippines, that’d be just fine with me. I just want me no one else. I’m just going to run it on my own. I just want to have a good lifestyle. I wanna make a little money, do something that’s valuable the community, but I’m not trying to build this enterprise. Just one good income. Lots of flexibility. If I want a month off, I take a month off. That’s it? That’s a lifestyle business. Not a lot of overhead, not a lot of complexity. What I want you to do is I want to say, that’s what I’m doing.
([07:39]): Yeah, that’s my goal is to be a lifestyle business. Because if you don’t announce that or at least make a commitment to that, you’ll find yourself maybe drifting into another type of business that you didn’t really want. And that might be an asset business, a business that has a degree of complexity. Some systems, processes, people, and frankly, it eventually becomes an asset that has value that you can sell down the road versus a lifestyle business. You’re not going to have nothing to sell. You’ve made a trade-off. If you’ve decided lifestyle business, you made a tradeoff that you want a lifestyle. And the tradeoff is you will not have an asset to sell. Not likely because you are the asset. And if you check out, there’s nothing there. But an asset based business says, I’m going to build out a business. That’s designed in such a way that if I check out and retire, the second time I can sell this asset to somebody else.
([08:32]): And that may be the objective is to build an asset. And the third type of business is one that somebody says, I just want to lead people, man. I mean, I love people. I always tell new hires. Don’t think of me as your boss. Think of me as a friend who can fire you. That’s not necessarily the case, but that may be the idea is I just love people and I just want to lead people. And I really don’t have an agenda of an asset or lifestyle. I can lead people and guide people and the kind of business I want, but really lifestyle and acid are the two main two that you really want to get your head around. But some people just like to lead people and they just fumble through it and ended up with an asset or a lifestyle or some combination of the two.
([09:06]): But I think you should kind of pin that down before you move forward. Watch a lot of shark tank, figure out how to solve people’s problems at a profit. See what’s left inside of you. I think there’s some stuff left inside of if you’re about to transition into retirement, I don’t want you to retire. I want you to pivot and do something great. Okay. So before I move forward into my number two step for setting up a business, I want to make sure you grab our retirement eBook retire in Texas PAX financial group.com. Grab that eBooks. My gentle nudge to get you engaged with our community. Number two, count the cost. If you’re going to solve people’s problems at a profit, you need to know what a profit is. A profit is revenue minus expenses equals net income. Also known as profit. It’s oftentimes used synonymously revenue or sales, revenue, sales, kind of the same thing, expenses or how much it costs for you to run a business.
([09:56]): Netting comes profit. I need you to make sure you’re going to run a business at a profit. If not, you need some cash and that’s your runway cash So, reserves runway. So it may take you two or three years to get some profits. Make sure you have enough cash in your business plan, check with your financial advisor. Your financial advisor will say, okay, you have a three-year runway before you need to make profit. That means you’re going to burn through cash. And we call that a burn rate, how much you’re burning through before you eventually run through all your cash. And you may be fine. You may say, look, I’ve got enough money set aside. If I do this and it doesn’t work, I’m going to be okay. Yeah. I lost a hundred thousand dollars, but I went for my dream and your financial advisor will crunch numbers and say, yep, you can afford to burn a hundred thousand dollars and you’ll be okay.
([10:35]): And you say, look, it’s a risk. I’m going to take it. But if I don’t make it, I lost a hundred thousand dollars. My life doesn’t change. That’s kind of a cool situation to be in, but you got to run those numbers. Make sure you know, your revenue minus expenses equals your profit. Know your burn rate, how much you’re running out of money and have a runway enough cash squirreled away to cover your negative profit, your losses until you get in the black positive and have three separate bank accounts. One bank account for you personally, one bank account for your business and one bank account for taxes. Any profits you make 25% needs to be set aside for taxes. You can transfer that money quarterly through electronic funds, transfer payment services. Make sure you have a good CPA. Okay. Number three, step number third step.
([11:21]): You need an advisory council. This is really important. I set up an advisory council long time ago. Those were very helpful group of people. I liked that had wisdom that had been in the business that could guide me. You need an advisory council. People who’ve been there. Proverbs 15, 22 says plans fail for lack of counsel, but with many advisors they succeed. So I got a group of people together. My bottom lunch, it was a two-hour lunch, long lunch, nice lunch at a country club, but you don’t have to do that. I presented where we were as a company where we’re going and some of the questions that were gray that I needed some wisdom in. I had him sign a confidentiality agreement. They all signed, it did three-year terms. And many, many, many of them said they enjoyed the relationships, the dialogue, and were even questioning whether they were giving good value.
([12:09]): They were like, I don’t know if I’m giving good value, but I love being a part of it. But if you get that advisory council together early in your business, you’ve got your raving fans and your cheerleaders. I’m highly encouraged to get your advisory council. You don’t have to take them to a country club. You can take them wherever, but you know, spend a couple hours with them, buy them lunch part of your business model. And I think that you’re going to find yourself avoiding some of those emotional mistakes, the big ones that crush businesses, because you are going to listen to your advisory council. You can’t just have an advisory council not listen to them, right? So those are my three steps. If you’re going to start a business in Texas, first one, I just want to remind you, Texas is the place to have a business, but if you’re going to have the business, number one, you’ve got to have a problem to solve.
([12:53]): You’ve got to solve a problem. Number two, you’ve got to count the cost and making sure that you know how much cash it’s going to take before you go black. Before you get a positive profit and number three, give it an advisory. Council member, Proverbs 1522 plans fail for lack of counsel, but with many advisors they succeed. I want you to start a business. I believe in starting businesses. I think everyone should start a business and remember it is never too late to start a business. Thanks for tuning in today. Make sure you grab our eBook retire in Texas podcasts@paxfinancialgroup.com and remember to think different when you think long-term,
This is ThePodcastFactory.com.
References:
*https://wallethub.com/edu/best-states-to-start-a-business/36934
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