Senior Entrepreneurs

Although starting a business after age 60 is nothing new – Harlan “Colonel” Sanders took an old family recipe for fried chicken and a $100 Social Security check and turned it into a multimillion dollar fast food business at the age of 65 – it hasn’t been the norm. It is, however gaining popularity.

According to James Challenger, “Aging baby boomers will lead a surge in start-ups that will accelerate the economy's recovery. The number of self-employed 55 and older has increased 18 percent from 2.5 million in 1994 - the first year of tracking - to 3 million in 2003. These senior entrepreneurs now represent 28.5 percent of all self-employed workers”.

The reasons for seniors becoming entrepreneurs (also called seniorpreneurs, gray entrepreneurs, or third age entrepreneurs) are varied. Some have always wanted to start a business, but lacked the financial or family flexibility to follow through. Some see it as a progression of their career. Some are forced into self-employment due to a lack of acceptable alternatives and insufficient wealth to retire early. Others are just plain bored by the “usual” retirement life of golf and rocking chairs and are looking for a challenge.

Older entrepreneurs may also find starting a business easier than their younger counterparts.

· They have industry credibility and a track record in business
· They have confidence in proven abilities and are usually more effective leaders
· Established credit and personal resources can make it easier to raise capital
· Computers have made it much easier to operate a home-based business

There can be some drawbacks, however.

· Seniors are more likely to become sick or disabled and need a strong backup system.
· If you’re uncomfortable with technology, you could be at a competitive disadvantage
· If the business fails, you may not be able to recover financially
· A start-up can consume all of your free time

Before an older person launches a business, there are some important questions to consider:

· What will happen to your family if your business is slow to make a profit or fails? Plot out the scenarios with a financial planner and make sure that you have an adequate cushion.
· Could you get a better return by investing your money elsewhere? If so, are you sure the other benefits of having the business will outweigh its cost?
· How long do you realistically plan to be active in the business? If your hope is eventually to step back from day-to-day responsibilities, consider taking on a partner or a protege, or teaming up with family members.
· How comfortable are you with risk? Starting your own venture requires a strong stomach. Ask yourself if you would be better off in a lesser role at someone else's startup, perhaps as a consultant, board member, or angel.

Some other interesting facts about seniors (Folksonline.com):

· More than half of this country’s discretionary income is controlled by the over 43% of households which are headed by adults over 50 years old.
· A Federal Government study shows 30% of people in their 50s and 16% of people in their 60s have a computer
· More than 50% of consumers over age 50 are interested in trying new technologies and products.
· Households headed by members over 55 have twice as many assets as those headed by 35-55 year olds.
· In 1989, 21% of Americans were over 55 and by the year 2020, they will represent one third of the total US population.

Depending on your health, energy, drive, goals, and finances, becoming a Senior / Third Age / Gray Entrepreneur could be a rewarding and profitable experience.