America will soon be flooded with retirees. By 2030, all baby boomers (people born between 1946 and 1964) will be over the age of 65. As baby boomers still constitute 20 percent of the national population, that’s millions of retirees! There are many business opportunities for retirees looking to pad their savings.
Who are the Baby Boomers?
When millions of GIs returned from WWII, the population experienced an expected boom. Federal aid including housing subsidies, education grants, and a wealth of employment opportunities, meant veterans could afford to grow their families. When millions of American soldiers returned from WWII in 1945, the government provided educational and housing subsidies.
As a result, Americans could start to have children minus the worry of having enough to provide for them. Between the years 1956 and 1960, a whopping 21.2 million boomers were born, the largest 5 year total for newborns in American history. The boomer generation is often considered the luckiest American generation due to the financial climate they came of age in. Boomers grew up during the rise of consumerism in the 50s, 60s, and 70s.
Due to the economic boom of the 1990s, baby boomers had much more disposable income than any other generation. The U.S. economy grew 4% annually between 1992 and 1997. Furthermore, an average of 1.7 million jobs was added each year and the unemployment rate dropped from 8% in 1992 to 4% in 1999. Finally, stocks quadrupled in value during the decade as the Dow Jones grew 309%!
Why Do Boomers Continue Working?
The stark reality is that although boomers experienced one of the greatest economic booms during their peak earning years in 1990s, many do not have enough money to retire. According to the 2014 Merrill Lynch Retirement study, 22 percent of boomers have less than $100,000 in savings and half of those have less than $50,000.
Many baby boomers had their savings tied up in the stock market before and during the Great Recession. Additionally, baby boomers who were gainfully employed when the market crashed in 2008 were laid off in large numbers. Many baby boomers were never able to find steady work after the crash. The result: many retirees are not able to fully stop working.
In a survey that polled over 1,000 people between the ages of 65 and 85, the senior care company Provision Living found that over six out of 10 people polled were not planning on retiring. Many of the participants in the survey were not financially stable enough to retire.
Why Baby Boomers and Franchising Are a Perfect Match
Call it a passion for entrepreneurship, but boomers are beginning to view franchising as a viable alternative to working part-time or even looking for full-time work at an age when they should be enjoying their golden years.
Baby Boomers Don’t Need to Break the Bank to Afford a Franchise
As we’ve stated, many boomers have an insufficient level of savings. There are numerous low-investment franchises, some of which can be operated in the comfort of a franchisee’s home. Some home based franchises include tax prep services, cleaning services, printing, and senior care. There are also various ways to finance a franchise. The Small Business Administration offers financing options and many franchises even offer their own source of financing to help entrepreneurs afford their dream business.
Baby Boomers Aren’t Alone When it Comes to Franchising
Just because you worked in a specialized industry for decades doesn’t mean a franchise in a completely different industry is off the table. Franchises often do an excellent job when it comes to educating potential franchisees on what the franchise does, financing available, and training required to be a successful franchise owner. Retirees can reach out to a multitude of franchise associations and current franchise owners for guidance. Prospective franchisees can also seek the help of a franchise attorney to read over legal and tax documents. When it comes to franchising, retirees never need to feel like they’re out of the loop.
The Top 3 Best Franchises for Retirees
American Business Systems
Estimated Initial Franchise Fee: $26,990
Estimated Startup Cost: $0
Estimated Revenue Range: See FDD
American Business Systems is a medical billing franchise that entrepreneurs can run from the comfort of their own homes. Franchise owners generate revenue processing claims, conducting audits, and much more. This home-based franchise offers live training so that even entrepreneurs with little to no experience in the industry can thrive. American Business Systems does not charge royalties or restrict territory meaning franchisees can offer their services anywhere in the nation.
Estimated Initial Franchise Fee: $30,000
Estimated Startup Costs: $30,000
Estimated Revenue Range: See FDD
Apex Payroll offers payroll solutions to clients across a wide spectrum of industries. As another great home based franchise option, entrepreneurs can save tons of money on overhead costs and legal fees that a store-based franchise would incur. Apex’s proprietary cloud-based payroll technology makes it easy for entrepreneurs to provide outstanding service.
National Property Inspections
Estimated Initial Franchise Fee: $34,900
Estimated Startup Costs: $40,700 – $43,000
Estimated Revenue Range: $26,116 – $400,829
The property inspection industry is worth an estimated $3 billion. Entrepreneurs can crack into that revenue with National Property Inspections, a building inspection franchise founded in 1987. Retirees from every background who undergo the proper training will be able to inspect buildings, provide energy evaluations, and much more. Due to the never-ending construction of commercial buildings and residential homes, entrepreneurs can rest assured that their business remains steady, even during the toughest of economic times.
Baby Boomers Have Many Franchise Options
The good news for retirees is that franchising still remains a great route. Many franchises require little to no physical labor and can be run from home. Many retirees have already made the decision to better their savings by jumping on the franchise bandwagon.