There is a gut-wrenching scene in the George Clooney film Up in the Air where a gruff auto worker – a man who appears to be in his late 50s or early 60s – is terminated from his job. It is, undoubtedly, the culmination of a plot buildup that had been coming for some time, and the sequence is heartbreaking.
We feel for – and, in some cases, relate to – this man because he presumably had only a few years left until he could retire, and he now has been handed what seems to be an occupational death sentence.
The economic crisis took a major toll on American workers, and those laid off at the higher end of the age bracket may have found themselves with rather difficult life decisions: “Do I try to find another job? Can I just retire early?”
Or what about this one: “Should I start my own business?”
Older workers, as the (often wrong) perceptions and stereotypes go, aren’t as fresh out-of-the-box thinkers as their younger counterparts. They lack the newest, most advanced skill sets. They aren’t as tuned in to the latest and greatest technologies.
The fact is, getting hired at a later stage in life can be difficult.
But, if calculated risks are taken, becoming an entrepreneur in your senior years can be ripe with opportunity and reward.
The number of individuals starting their own companies when most people their age would be retiring in the islands (or the mountains, if that’s your thing) is on the rise. The AARP Public Policy Institute said that in 2008, 21 percent of the self-employed were between the ages of 55 and 64, while 10 percent were 65 and older.
BusinessWeek paints a picture of how a man who was 61 did something that most would do in their 30s or 40s.
Wally Blume worked in the dairy business for two decades, first for grocery chain Kroger and later as sales and marketing director for a large dairy in Michigan, where he helped market new ice cream flavors. But soon after another company purchased the dairy, Blume decided that the once-innovative company was falling short, prompting him and a couple of colleagues to quit to develop and market their own flavors. In 1995 the partners had a national hit with Moose Tracks (a combo of vanilla, peanut-butter cup, and fudge), and within a few years Blume decided he’d be better off running his own company.
In 2000, Blume mortgaged his house and every other asset he could, plunking down what he says was “seven figures” to buy out his partners and start anew. That same year, he launched Denali Flavors, a marketing and licensing company that creates new ice cream and dessert concepts for independent regional dairies, allowing them to compete with the big national dairy brands. Looking back, Blume says: “I knew I could run it better than my partners. In my opinion there was just no downside to the risk.”
Blume makes it sound easy. He’s now 71 (a decade after he started his business), paid off his loans in 25 months, and sees revenue of about $80 million a year. His 40 ice cream flavors can be found in 50 states and Canada, and he’s launched two other ventures that have nothing to do with ice cream (saunas and boats).
Sounds great, doesn’t it? Not so fast.
It’s important to be smart if you plan to start a business. Us older types may have more money than our younger counterparts, but that’s not to say we should be dumping our pensions or 401(k)’s into a new venture this late in life. Realize these things could take years to get off the ground, and even longer to turn a profit. The more moving parts, the higher the chance of failure.
But don’t let the risks deter you. Just be smart about it. Do the research.
And those perceptions about seniors being too old to work? Set out to prove the status quo wrong.
P.S. Oh, and when you’re starting that business in your 60s, 70s, and even 80s, don’t forget that Home Instead CAREGivers can prepare meals, do light housekeeping and help you run errands. ’Cause you’ll have enough to do as a business owner. Check out our website and digital brochure at http://homeinstead.com/richmond-va.
