Purchasing a Franchise Business for Retirement

Main Digest

Planning for retirement? More retirees are considering the economics of franchise business ownership.

According to the Kauffman Foundation's just-released Kauffman Index of Entrepreneurial Activity, near-retirees (aged 55-64) represent a rising share of new entrepreneurs in America. According to the survey, this age group represented 22.9% of new entrepreneurs in 2010 compared to 14.5% in 1996.

"In our consulting practice, we have observed a growing interest in small business ownership from near-retirees and retirees," says David Goldbaum, a retired economist and the founder of Franchise Economics Inc. This company assists those seeking economically viable franchise businesses. "The economy has spurred some of the growing interest, but longer-term trends are also at play," Goldbaum continues.

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Retirees Live Longer Than Ever:

Today's average 55-year-old American will live another 30 years, according to CDC statistics. The active and health-conscious live significantly longer. Thirty years is more than enough to build and enjoy a small business.

Retirees Will Stay Healthier Longer Than Ever:

Advanced medical care and trends in healthy consumption and attitudes have made us a highly productive and capable group of Americans. Retirees are ideally suited to operate a business that suits their background and skills and targets their financial goals.

Small Business Ownership is a Great Way to Stay Physically Active and Mentally Stimulated:

For individuals who enjoy mental stimulation, community involvement, and an active lifestyle, managing a small business can be the right approach. A business matched to the individual's temperament, lifestyle goals, and interests can contribute to physical and mental health.

Many May Need The Income:

This recession has forced many near-retirees into unemployment or early retirement, while home values have significantly reduced nest eggs. The percentage of employees "not at all confident" about having sufficient income for a comfortable retirement grew from 22% in 2010 to 27% through March 2011. This is the lowest level recorded in the 21 years of the Employee Benefits Research Institute's just-published Retirement Confidence Survey. A small business may be the right approach for income shortfalls, provided enough is available for the initial investment, including working capital.

Franchise Businesses Make it Easier to Get Started:

You do not have to start from scratch and can reduce the risks of any business startup by taking a franchise approach to business ownership. With so many successful corporations turning to franchise their businesses, there are franchise opportunities in all franchise opportunities exist.

Communities Really Benefit:

Near retirees and retirees that bring decades of business experience to a community contribute to the economic welfare of the entire community by providing services and, often, employment opportunities for others. It is a great way to contribute.

We are in a recovery that has shown slow but consistent recovery and have 2009 - almost two years. This recovery also appears remarkably stable even in the light of the unprecedented and entirely unexpected disaster in Japan, the world's 3rd largest economy. A small business venture in an industry well positioned to leverage economic recovery may be a viable option for today's retirees.

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