Statistically, more and more people are reaching the age where the idea of retiring should look appealing. However, surveys and studies indicate that more and more Boomers are thinking of starting a new business instead of their golf game. For example, a 2003 AARP survey found that approximately 15% of Boomers expect to own businesses in retirement. The attraction of finally being your own boss and building something for yourself is a strong allure for many of the 50 years old and older crowd. Yet, there are drawbacks to consider.
A senior advisor for the AARP cautions that some seniors need to think twice about starting a new business. The primary concern being that many Boomers may exhaust their savings and find it difficult to financially rebound if there was a setback. With 66% of all new businesses failing within the first 4 years, it’s a strong concern to consider. The other concern is sheer physical exhaustion. The hours poured into a new business venture can drain even the youngest entrepreneur at heart.
One potential business opportunity that is proving attractive to the Boomer entrepreneur is the idea of owning a franchise. While an entrepreneur must still invest a lot of capital, and devote hours to starting up the company, franchises have historically performed better than independent ventures. Additionally, many former employees are attracted to the strict formula that franchisers provide to owners who have spent years working for someone else.If you thrive on coming up with your own idea and unique business, then franchising is probably not for you. However, if you are exploring new business opportunities it may be one to consider.