Should you Half-Retire in a tough economy?

by | May 1, 2020

Lately, I’ve been asked the question, “Can you Half-Retire in a tough economy?” The answer is, “yes.” It’s still a good idea to start or continue Half-Retirement during tough times. Here’s why:

  • Life happens regardless of the economy. You may feel like you can’t slow down currently, but eventually, you will need to slow down. Starting now yields benefits now.
  • Half-Retirement is about turning your business from a source of hard-earned income to a source of equity income, not about loafing around.
  • When you Half-Retire, you save your energy for the most important aspects of the business instead of burning yourself out trying to do everything.
  • You can make more money Half-Retired than you can with your current model, if you do it right.
  • Running any business from a Half-Retire mindset yields a business that runs better, and that’s good during any economic condition.
  • During slow times, you can speed your Half-Retirement because there is not as much work requiring your attention.

Many business owners are victims of inertia. They believe the solution to any problem is to do more of what they already do. In times of uncertainty, the “more of the same” plan or the ‘try harder” plan rarely work.

Trying times bring a rare gift, the opportunity to rethink everything. In accounting, they call this zero-based budgeting. With this technique, you ignore current spending levels to avoid the temptation to adjust or tweak them and start over. With a clean slate, you can rethink and redesign the business to reflect your desires without the shackles of how things have always worked.

A tough economy provides the perfect opportunity to challenge your business model, systems, practices, team members, and management style. You can literally redesign the business to better fit the new realities. Ask yourself, “If I were starting a new business today, would I start a business like this? If so, what would I do differently? If I would not start something like my current business, what would I start?”

I’ve seen clients create quantum changes in their businesses by focusing on the opportunities provided by a challenging economy vs. hunkering down and fighting through it. When times are tough, Half-Retirement may not mean working from the beach in Europe, but it can still improve your business and your life, in good times or bad.

Curious about Half-Retirement, take the free course.

 

 

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