Wednesday, February 5, 2014

For Those 50 and Older Starting a Business is the Only Way to Have a Successfull Retirement.

If you are in your pre-retirement years you have many things to worry about. The constant barrage of headlines telling us how bad things will be for those approaching retirement doesn't help much but it has made many reconsider their career choices.

Take your pick, healthcare, Social Security, or just not enough saved; this isn't your fathers retirement. It's true today's retirees are having a harder time making ends meet. We could only wish that those were the only problems. We are also facing taking care of older parents and college age children who can't find jobs. Retirement is being postponed. Never before has so much responsibility been placed on a generation.

The Need is Real


This perfect storm of problems has awoken something that has never been seen before. Today's elder generation has bloomed into a generation of entrepreneurs. This age group has risen to the challenge of not waiting for the government or anyone else to help them, they have stepped up and taken control of their financial lives. 

You won't find this generation playing shuffle board or canasta in the clubhouse. You will find them going to work. Many have realized from the start that a successful retirement means still earning an income. They have decided to not let the increased expense of living ruin retirement. This trend is something completely new for the United States. Sitting at home waiting to collect that Social Security check is not part of their futures.

The statistics are incredible. Americans, aged 65 and older, which number 8 million people, 40% of them own a small business. Less than 10% of these businesses are 4 years old. More than 10% have just started a new business. This is according to data released by the Bureau of Labor Statistics. These figures apply to those who are still in the workforce not those who are not going to work again. 

Entrepreneurs with Experience


The current retirement generation are Baby Boomers who grew up in the 50's and 60's. They have experienced and lived with parents from the greatest generation. They were underestimated and criticized that they were living off the hard work of the previous generation. The proof is there that they are seeding the rising economy with there small business start ups.

What makes these people so able to be entrepreneurs. In comparison to their younger business start-up counterparts, older entrepreneurs have the advantage. They have more capital to invest in running a new business. They also have more knowledge of their particular industry. They also have one thing that the younger businessman doesn't have, motivation. Of course the younger man has a passion but the older entrepreneurs are highly motivated. They have been in the workforce for so many years they are in a comfortable position and their fear of failure is very low compared to a new entrepreneur.

retirement
retirement (Photo credit: 401(K) 2013)
It's not all rosy for the older business man. Over the years they may not have been in a management position. They may not have knowledge of advertising, product procurement, office operation, and even social marketing. I thought about how the older entrepreneurs could come up to speed. It's not like you need to reinvent the wheel. Running a small business is basically the same form and function independent of the product or service the business produces. 

Many business schools teach many ways to overcome the problems of starting a new business. One that I particularly like is taking on a partner. The real success of the company depends on the skills and hard work of the principles. If you think a partner will help why not get someone who has the skills and education to contribute but also has the energy and stamina to contribute. 

If you are nervous about starting a business, remember Ray Kroc started Mcdonalds at the age of 52. If he can be successful so can you. He started with one restaurant and the rest is history.

1 comment:

  1. Upon my retirement, I really intend to have a good vacation. But of course, after vacation, I can't just sit still doing nothing. I still want to have a side income and having a little business would be most likely that I would want. These are wonderful tips you got here.

    ReplyDelete

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