A Boomer's Guide to an Entrepreneurial Retirement
Al Brown had decided that by age 50 he was going to be his own boss. After working for 20 years in supply chain management, spending up to 80 percent of his time traveling around the world, Brown, who lives in Naperville, Ill., wanted a way to support his family while also being able to spend time with his son, 8, and daughter, 4.
"I became disenchanted with working for someone else," he says. "I missed so much of my kids' activities and lives, I decided enough was enough."
In September, Brown, 49, launched SupplyMex, a consulting company that partners clients with suppliers in Mexico.
Brown is part of the growing trend of baby boomers who have left the corporate world for self-employment. The Kauffman Foundation, a group that promotes entrepreneurship, reports that older individuals were increasingly engaged in new business start-ups, and according to data from the Small Business Administration, the fastest-growing group of entrepreneurs consists of owners over age 45.
The reasons for the surge are plenty. Many boomers approaching retirement age choose to continue working–finding a life of leisure a tad boring. Others, often laid off from their jobs and unable to compete with younger candidates, are forced into their own businesses to stay afloat. Moreover, the population as a whole is getting grayer, and men and women over age 50 are healthier and more energetic than ever. In a Yahoo! small-business survey, 72 percent of respondents ages 55 and older said they would "never be too old" to start their own businesses.
The businesses themselves are diverse–a cookie-order business, a full-service spa, a flower shop, an Italian bistro, and supply chain consulting–but most "successful" retirement-age entrepreneurs have one thing in common: They love what they do.
The sad fact is that most of these start-ups don't make a lot of money. "There seems to be a myth that entrepreneurship and self-employment are secret paths to wealth," says Jeff Cornwall, director of the Center for Entrepreneurship at Belmont University in Nashville.
Instead, starting a small business, especially later in life, should be about self-fulfillment. "If you make a little money, it's frosting on the cake," says Jeff Williams, president of >Bizstarters.com, a company that coaches entrepreneurs over 50.
For most older small-business owners, striking it rich isn't a high priority in the first place. According to Williams, many of the 3 million self-employed workers over 50 want to, first and foremost, do work that fits their desired lifestyle. For Brown that means scheduling around his kids' activities and traveling at will. He still works 50 hours a week but has the flexibility to do work at off-business hours, like after his children go to bed.
But boomer entrepreneurship is not all island hopping and club soccer games. Owning a small business can be a volatile endeavor, one that many are not prepared for. Besides the sizable financial risk, starting a business requires a diversity of skills–something that having spent years behind a desk, becoming expert in one or two areas, doesn't necessarily engender.
Brown has ventured into "new territory" for him–marketing and sales. "There's a lot of uncertainty," he says. Luckily, for boomers ready to launch a new endeavor, there's also a lot of company.
More on an Entrepreneurial Retirement:
• Going Your Own Way (April 3, 2006)
Cookies, massages, flowers. Ventures that embody the retiree-turned-entrepreneur movement
• Essentials for Entrepreneurs (April 3, 2006)
5 things to consider before launching your own business
• From High Finance to Ravioli (Oct. 9, 2006)
Tim Sheerer spent 13 years at Merrill Lynch. He traded it in for an Italian restaurant and quality time with his kids.
• Pitfalls of Baby Boomer Entrepreneurship (April 5, 2006)
More from Jeff Cornwall on small-business myths and obstacles
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