In this edition of FranNet’s blog, we’re going to delve into a discussion on whether or not franchising has become the new Baby Boomer Exit Strategy. Exit from what you may ask? Corporate America. Defined by the U.S. Census Bureau, Baby Boomers “…are the demographic group born during the post–World War II baby boom, approximately between the years 1946 and 1964. This includes people who are between 53 and 71 years old in 2017.” Sitting at the middle of those two numbers is the retirement age of 65, though the average age for retirement is currently 57. How old are you? Wait, don’t answer that…
Why do Baby Boomers make such attractive franchise candidates? For openers, they often have decades of business and management experience. Their level of income and accrued savings usually put them right in the ballpark for buying a business of their own. And lastly, many don’t yet aspire to just retire. Many Baby Boomers are living much longer, healthier lives than ever before, thereby assessing this time as just another stage in their overall lives.
Some of the other factors driving Baby Boomers to seek franchising as a post-retirement route include the growing trend of underfunded pensions now plaguing the U.S. When these pension plans didn’t perform as advertised, it left wide gaps in monetary expectations. And after retirement, what about just getting another job? Many of these candidates can attest that ageism is alive and well in the job market, hindering a fair chance at rehire opportunities—often taking twice as long to land a position.
Recent studies report that entrepreneurism among the Baby Boomer set is, well, booming. According to a 2013 study commissioned by Kauffman Index of Entrepreneurial Opportunity, almost a quarter of all new entrepreneurs in 2013 were aged 55 to 64.
Suffice to say, Baby Boomers have just about seen it all in their careers. They’ve no doubt experienced the pride of advancement while also dealing with the disappointment of downsizing. Franchising, however, allows these Boomers to experience a different level of empowerment. Instead of them taking care of a company, a company is now taking care of them.
The type of franchise opportunities generating the most appeal among Baby Boomers include home-based services, educational/tutoring opportunities, business coaching, recruiting/staffing and, of course, senior care franchises.
It’s really no surprise that franchising’s strengths appeal to the Baby Boomer set. With built-in procedures, outstanding levels of support and validation from others in the entrepreneurial industry, they’re ready to take on the challenge like never before.
If you’re currently involved in post-retirement plans and you’d like more information about investigating franchise opportunities, we have concepts to fit every nest egg. Just give us a call and we’ll arrange a no-obligation meeting at a time of your choosing.
Let’s chat! There’s a local FranNet consultant right in your market who knows that market inside and out – knows the personality of the market – knows the competitive landscape. FranNet has a great track record of assisting individuals on their path to entrepreneurship, and one of our franchise experts would love to provide you with guidance free of charge. Sound like something you might be interested in? Get started here and find your local consultant right now!