Retirement doesn’t have to mean slowing down — for many Arizonans, it’s the perfect time to finally turn a passion into a paycheck. Whether you’re consulting based on your past career, selling crafts online, or running a golf cart repair shop out of your garage, small business ownership in retirement is on the rise.

In fact, nearly 25% of new entrepreneurs are between ages 55 and 64, according to the Kauffman Foundation. These “encore entrepreneurs” bring experience, financial stability, and purpose into their post-career ventures.

If you’re considering launching your own business during retirement, this guide will walk you through the essentials: from choosing the right business to setting up banking, funding your startup, and building a support system right here in Sun City and Sun City West.

Table Of Contents

Jump to any section below:

1. Start With A Business That Fits Your Lifestyle

Your business doesn’t have to be big or stressful to be successful. The best retirement business is one that aligns with your interests, uses your experience, and supports your ideal lifestyle.

Popular Retiree-Friendly Business Ideas:

  • Consulting or coaching in your former profession
  • Golf-related services, like equipment resale or coaching
  • Creative ventures like quilting, painting, woodworking, or jewelry
  • Online stores on Etsy or eBay
  • Bookkeeping, tax prep, or virtual assistant services
  • Pet sitting, gardening, or home watch services for seasonal residents

Consider how much time and flexibility you want. Do you want a seasonal side hustle or a part-time business you can run from home between golf outings and grandkid visits?

Need help structuring your banking needs from day one? Explore our small business products to compare business checking and more.

2. Understand The Startup Costs

Even a small business has some upfront costs. Understanding them early helps you budget smarter and avoid overspending.

Common Startup Expenses Include:

  • Arizona business licenses and registration fees
  • Website domain, hosting, and email setup
  • Supplies or inventory
  • Marketing and branding (even a simple logo)
  • Equipment or software (like QuickBooks or Square)
  • Insurance or legal setup (like an LLC filing)

Use this free SBA Startup Cost Worksheet to estimate your expenses and determine whether you’ll self-fund or need financing.

3. Explore Smart Financing Options

Not every retiree wants to dip into their nest egg to fund a business — and you don’t have to. Many local business owners use financing tools to manage cash flow or cover early expenses.

Financing Tips For Retiree Entrepreneurs:

  • Use only what you need — your business should support your lifestyle, not strain it.
  • Keep emergency funds and retirement savings untouched by setting up a separate business account.

4. Open A Business Bank Account (Don’t Skip This)

Many retirees think, “It’s just a small side business — do I really need a business account?” The answer is yes.

Here’s Why:

  • It keeps your personal and business finances legally separate
  • You’ll need it to accept payments, track expenses, and prepare taxes
  • It helps build your business credit and credibility
  • If you scale or hire help, you’re already set up properly

At Sun Canyon Bank, We Offer:

You’ll also get access to mobile banking, debit cards, and optional merchant services.

Talk to a banker who knows the Sun City and Sun City West small business community.

5. Make A Simple Business Plan

You don’t need a 30-page investor pitch. A short plan helps you stay focused and financially prepared.

A Simple One-Page Business Plan Includes:

  • What you do (your service or product)
  • Who you serve (your ideal customer)
  • How you’ll reach them (marketing or word of mouth)
  • What it costs to operate
  • How much you expect to earn

Start with a free SCORE business plan template designed for solo or small business owners.

6. Get The Right Tools In Place

You don’t have to be tech-savvy to run a successful business, but there are tools that can make it easier — especially if you’re a one-person operation.

Essentials For Most Retirees:

  • EIN (Employer Identification Number): Needed to open a business account and file taxes
  • Business registration: Register your LLC or sole proprietorship with the Arizona Secretary of State
  • Accounting tools: QuickBooks or Wave can help you track income and expenses
  • Website or social media: Even a simple Google Business Profile can help people find you

If you’re taking payments, explore tools like Square, Stripe, or PayPal to get paid easily and securely.

7. Build A Support System — Starting With Your Local Bank

You don’t have to do it all alone. As a retiree, you’ve likely built a network and now it’s time to tap into local business resources.

Try These Support Systems:

Need help getting started? Visit our website or stop by our Sun City or Sun City West branches. We are here to help.

Frequently Asked Questions

Q: Will Starting A Business Affect My Social Security?

A: This depends on your earnings. It is generally recommended to consult with a social security representative or benefits counselor to understand potential impacts.

Q: What Business Structure Should I Choose?

A:  Sole proprietorships are typically easiest to start, however, an LLC may offer liability protection. It is generally recommended to discuss options with your legal counsel.

Q: How Do I Manage Taxes?

A: Keep careful records. You may need to pay quarterly tax estimates. IRS.gov has helpful forms.

Q: What Support Does Sun Canyon Bank Offer?

A: We provide starter accounts, merchant services, business checking options, and local guidance.

Glossary Of Key Terms

  • EIN: Employer Identification Number for business tax purposes
  • LLC: Limited Liability Company
  • Merchant Services: Tools to accept payments electronically
  • SBA Microloan: A small loan designed for new or small startups
  • Business Checking: A separate account for all business transactions

Resources You’ll Find Helpful

Retirement Is The Perfect Time To Start Something New

Starting a business in retirement can be incredibly rewarding — emotionally, financially, and socially. Whether you’re teaching golf, selling handmade quilts, or offering tax advice from your living room, it’s never too late to build something of your own.

And when you do, Sun Canyon Bank is here to help — from your first deposit to your first sale and beyond.

Ready To Start Your Small Business In Retirement?