Trends in Franchising
In the early 1990s, the average age for retirement was 57 – it has since been steadily increasing. Recent studies indicate that more than 80 percent of baby boomers in the United States and 50 percent in Canada are not confident they will possess adequate funds for a comfortable retirement and anticipate the need to work beyond today’s traditional retirement ages of 62 to 65.
For many Americans and Canadians, simply having a job has not provided the wealth and equity necessary to retire on time. In the United States, the 55- to 64-year-old age group has had the largest increase in entrepreneurial activity over the last decade, according to the Ewing Marion Kauffman Foundation, a nonprofit group that promotes entrepreneurship.
“Older adults are beginning to realize that they cannot count on reactive investments, such as the stock market, and instead are choosing to explore franchising as a means to take control of their own destiny,” said Paul Segreto, CEO of The Entrepreneur’s Source, the nation’s leading career and franchise business coaching network. “While the job market remains volatile, franchising provides an investment opportunity backed by the security of a credible, established business plan.”
Segreto highlighted five types of boomer-friendly franchise opportunities and the reasons they fit for older entrepreneurs:
1. Home-based franchises require much less start-up capital than brick-and-mortar franchises and have more flexible hours.
2. Business coaching franchises allow retirees to use their acquired business experience and they can often work from home.
3. Tutoring/education franchises require a lower capital investment and are proven to be less stressful than a business opportunity like a restaurant concept.
4. Senior-care franchises allow baby boomers to easily relate to the customer base. Additionally, there is high demand for senior-care services, which will only continue to grow.
5. Staffing/recruiting franchises are a great option for retired executives who have grown accustom to the hiring process. Staffing services also have high customer demand that will grow as the economy improves.
Segreto adds, “If you can follow the system and you’re not a maverick, then franchising is a great opportunity for you. The franchise brings about 80 percent of the discipline to be successful; the other 20 percent is what the person brings to it to develop the business.”
Those boomers concerned with the startup costs associated with franchising may be surprised to learn there are several options that may be within their budget.
“Many people are under the false impression that in order to invest in a franchise you must have a very high net worth, but that’s not always the case,” said Terry Powell, Founder of The Entrepreneur’s Source. “Franchise investments can begin as low as $10,000 and range into the millions depending on the real estate and fixed costs associated with the business model.”
For more information about The Entrepreneur’s Source and franchising opportunities, visit https://entrepreneurssource.com/.