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By professional I mean Licensed Architects, Licensed Engineers, CPA's, Lawyers, etc. Professions where a State or Federal license is required for independent work but not always required for corporate work.
My question is to people who moved from being a full-time employee in a corporation or large firm, to being a retiree running their own independent one person company.
What were your biggest challenges in establishing your own company?
Had you been an independent earlier in your career?
Are you seeing some professions disappear for independents?
How many years has your new company been in existence?
How many days per week do you dedicate to your retirement business?
Is your new firm self-sustaining financially or is it more of an expensive hobby?
Well, no replies yet so maybe my question is unclear. Further details:
I am 60 and plan on retiring in 5 years. My (and my wife's) health is very good and I am looking for something to keep me busy after retirement. I am a Licensed Professional Engineer, have been for nearly 35 years. I briefly moon-lighted by running a small engineering consulting business with a partner 27 years ago, specializing in supporting local Architects with mechanical/electrical/structural engineering designs for luxury residential and small commercial building new construction. Otherwise, all my experience is within large corporations.
So one thought on keeping myself busy and engaged after retiring is to start a one-man engineering consulting business, and limit my hours to 3 days per week. Stay active but with lots of time for other pursuits. I will want, although not need, the business to be self-sustaining.
Anyone done something similar? Any contribution you can supply to my above questions, or other insights, will be appreciated.
Can not help you directly but I would start planning the paper work side of the business.
The IRS in conjunction with your state probably offers a one day workshop on small businesses. I would take that.
Are you going to be a corporation - C or S or a sole proprietor. S is probably best but you will have some minimum state income taxes to pay that may not exist for a proprietor.
Look for liability insurance. Write up a one page contract.
Consider on starting in your last year of employment or sooner.
Might want to build a web site about a year before you start.
Look for web sites that help place professional for short term work.
Maybe join the local chamber of commerce or similar group.
If you plan to do work for other (larger) companies, how will you limit your time to 3 days a week when they need the work done according to their project schedule and deadlines? Say you plan a trip, buy the tickets, etc, and one of your clients calls with a job that interferes with the trip? How many times can you say sorry before they go to someone else?
Have you ever worked from home for an extended period of time? It can get very lonely.
So, I have answered your questions with more questions. There's a lot to think about with starting a business (I'm sure there are other forums for that), but it seems to me that you aren't quite sure you want to be a retired person.
My EE husband worked many years for Raytheon and when he finally decided to cut back but not fully retire he told them he was available for part time work and technical writing when needed. It has worked out very well. No benefits except he gets to keep his smart phone, computer, printer and other tools of the trade and they get to keep him on the professional list when bidding on jobs. Can you do something like this?
We don't have to worry about a business start up, equipment, drumming up business, etc. This has worked for us.
By professional I mean Licensed Architects, Licensed Engineers, CPA's, Lawyers, etc. Professions where a State or Federal license is required for independent work but not always required for corporate work.
This was a topic of discussion with another one of my CPA friends at lunch today.
We both are volunteers. I do the books at a local non-profit. He runs a AARP tax preparation site.
We don't work. We don't need to.
When you sign up for "part-time" professional work, you end up working full-time and getting paid part-time wages. The people who hire you aren't looking for someone that is willing to work 15 hours a week. They are looking for someone that they can call 24/7/365 at their disposal.
Also, just because you work part-time does not relieve you of the responsibility of keeping up with the latest technology ... and that will be done in your spare time. Also, you will still need to carry professional liability insurance and that does not shrink when you go part time.
My suggestion would be to continue working until you are ready to retire.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Self employment in professional services is a lot of work for a PT gig,
Professional fees / licensing / taxes / qrtly reporting / invoicing/ drumming up work / + DOING the work is intense
Best to find a company that you can 'Sub' / take on projects that they cannot staff.
.
Some options (all co-worker (PEs) have done)
1) job sharing at previous company. 4 MEs shared a 4 month rotating schedule, so the months they had 'off' changed, but the company ended up with full yr coverage. Having to work 3 days EVERY stink'n week would kill me... I like to work hard and play hard and be gone for months at a time. Some people are 'home bodies' or have working spouse or grandkids nearby, so they are home anyway
2) project specific assignments. 6-9 months at a stint.
3) assistant to a PE firm with a short staff. (Couple Structural PEs nearby are one man shows, amd they get too much work at times)
4) county / city planning / maint. (A retired PE friend did 100% bridge inspections for an urban city. ~ 1/2 time job during retirement). Another did summer road projects for Federal Highways (often in NICE locations (National Parks))... Working summers is not high on my retirement employment desires.
5) create a 'specialty' and take only the work you want. I know a retired 'certified commercial ship inspector'. He can do as little or much work as he wants. He likes to take jobs where he gets to travel on business to a new area,nand take his wife, and spend an extra couple weeks after the job. Similar for a Fire sprinkler inspector / designer friend
6) align with a few developers and work 'as needed'.
7) get some international gigs. An ex-coworker just returned from 18 month PE gig in Israel. +/- but got to travel in middle east and eastern europe every weekend
8). Volunteer with an NGO in region you would like to rxplore.
9). Design and build a few personal inventions and sell the rights to manufacture
10) work at a startup that cannot afford to keep a FTE
Go crazy and start a PE business and employ OTHERS to do the work, and you can collect 50% of their fees while relaxing in Tahiti! A co-worker did that with 3 others. Took several yrs... Now has 86 PE's assigned out on contract. Owner spends a lot of time sailing. (And worrying too). But.... Every 'employee' is a free agent, all equipment is leased, no brick and mortar required, no capital equipment / thus no personal property tax obligation. Has 3 offices / sub contract agencies (USA, Asia, Europe). Nice locations for deductible business travel.
Or... You could just... 'Retire'.
Retire early, retire often! Take a few months/years off and see what shakes out
Last edited by StealthRabbit; 09-09-2016 at 12:23 AM..
WOW! Lots of great ideas, many of which were already on my radar but some are new. Having dipped my toe in this market years ago I am aware of the challenges of starting up a new small business and am undaunted by these. Been there, done that, know what to expect, know what to avoid. Probably should quantify those last two with a caveat of 'somewhat'.
I know I am not ready to retire yet. I also know I am closer to that step (both mentally and chronologically) than I was 3-1/2 years ago when I resigned from my former employer via their Retirement Program. I anticipate being closer yet to the correct mental stage in another five years, but also know that I will want/need to do something to keep myself mentally active and engaged.
Aligning myself with a small Architectural firm as their PT dedicated PE, or as seasonal fill-in at an Engineering Company, sounds very attractive. Should accomplish what I want without the other head-aches.
The Raytheon example would be great except that my employer's similar program is horrifically sinister. They lure back recent retirees with the promise of 2 or 3 day work weeks at double their previous pay rate as a contractor but no benefits. Then they quickly inundate these returning retirees with work, thereby increasing their work schedule to 7-12's! Eighty-four hour work weeks should be no one's idea of retirement!
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