When one retires from work, their source of income is undoubtedly affected. Many people, once retired, may find it increasingly difficult to make ends meet, solely off their pension or social security checks. If you had not properly planned for your retirement, you may very well find yourself in a financially restrictive position which forces you to seek other sources of income. Two great ways to supplement your income is by starting either a home-based business or an online business.Home-based business – Home-based businesses give you the freedom and flexibility that you may desire after years of working for an employer in an office setting. Home-based businesses also enable you to work at your own schedule, while complementing your lifestyle and family needs. A good place to start when deciding which home-based business to undertake is by taking a look at your interests and hobbies. Some home-based business ideas include pet grooming, daycare services, tutoring, crafts, sewing, cooking lessons and event coordination.Online Business – Another way for a retiree to work from home is by making money online. This is especially ideal for computer savvy retirees who may, for example, get paid to do freelance writing, take online surveys or provide transcription services at a fee. There are hundreds of business opportunities online for retirees to engage in. To find these, simply go online and type “free online business ideas” into a search engine such as Google. Out of the hundreds of results displayed, look for the legitimate online business opportunities, and beware of the scams. Conduct some research to find which online business would be most suitable for you. For your online business, you will of course require an internet connection, as well as good typing or writing skills.Having an effective marketing strategy is important for whatever business you decide on. For your home-based business, word of mouth advertising will be the most effective method. This is because you will use your already wide and established network of family and friends to market your goods and services on your behalf. For your online business, you will need to create a strong online presence in order to attract customers to your website or web page. You should also remember to keep good separate accounts for your business. This will enable you to know whether or not you are making a profit from your business.The most important thing for a retiree who decides to set up a business is to make sure that he or she enjoys themselves. After years of working, your retirement business should not be a source of stress. Find a business which you are interested in and one that you will have fun doing, even in your twilight years.