Aftermore than 20 years in corporate jobs, Bob and Cathy Dammeyer of Dallashad become weary of all the travel and meetings, the politics andbureaucracy. The fiftysomething couple pondered early retirement.
"Bob bought an antique car, and I bought a pickup truck, andwe were going to see what the end of the road looked like," Mrs.Dammeyer said.
Then reality dawned, and they figured they were too young toretire. So they went into business for themselves, selling Swirlfrozen-drink distributorships. Three years later, the Dammeyers'company, Culpepper Sales, does several million dollars in businessannually.
"It's rejuvenated us," Mrs. Dammeyer said. "We don't worryabout corporate minutiae anymore. We only have to satisfy ourselves."
The Dammeyers represent a growing breed of baby boomers whohave started their own businesses at a time of life when other peoplehave begun to think longingly about retirement.
Workers 55 and older represent one of the fastest-growinggroups of the self-employed, says consulting firm Challenger, Gray& Christmas. The number of 55-plus Americans working forthemselves has increased 28 percent since 2000, compared with stagnantor declining self-employment for most other age groups, according to aChallenger analysis of government data.
Today, baby boomers and seniors account for 56 percent of thenation's self-employed workers, the firm says."Boomers will use self-employment as a bridge to retirement,"said Lynn Karoly, a senior economist with the RAND Corp.Many boomers intend to work longer than previous generations,but they want to work on their own terms, she said."They're creating jobs that give them more control over theirlives and more self-fulfillment," said Ms. Karoly, who co-wrote areport on Americans 50 and older who have become their own boss.Healthier situationBy the time Diane D'Agostino-Smith of Rowlett entered hermid-50s, she was putting in 15-hour days as an oil company executive'sassistant."My work had taken over my life," she said. "I felt like Icouldn't even take the 30-minute exercise break my doctor hadrecommended."When her health began to slip, she knew she had to get out.After returning to school, Ms. D'Agostino-Smith set up a life-coachingpractice to help others choose new careers.She runs her business out of her home and values working herown hours."I took a difficult situation and changed it into somethingpositive for myself and others," she said. "I'm proud of that."John Challenger, chief executive officer of Challenger, Gray& Christmas, said the corporate downsizings of recent yearshave provided another impetus for elder entrepreneurship.
Older workers accept buyouts from employers, but withouttraditional pensions or retiree health benefits, can't afford toretire, he said."The irony is that many companies' new openness to outsourcingand hiring independent contractors to perform certain tasks is creatingbusiness opportunities for the self-employed," Mr. Challenger said.Experts agree that starting a business, whether by choice ornecessity, is not for the faint of heart. The hours are long. The risksare high. And, as some self-employed boomers have discovered, friendsmay even question your sanity.Mrs. Dammeyer advises new entrepreneurs to come up with ashort speech to deliver to doubting friends and family."Some people will think you're crazy," she said. "So for yourself-confidence, you've got to explain to them why this is the rightmove for you."Gene Fairbrother, a consultant for the National Associationfor the Self-Employed, said the biggest challenge for many people isdeciding what kind of business to open.Staying in one's industry reduces the risks, because the newentrepreneur will have experience in that field and a Rolodex ofbusiness contacts, he said.At 50, Karen Taylor of Richardson started her own publicrelations firm, Southwest Ink, after working in advertising and publicrelations much of her career.
She credits her network of contacts with helping her land herfirst clients.Now 63, she says some of her business relationships date backmore than 20 years."My longer-term clients have become close friends," she said.Changing courseFor many of the self-employed, however, midlife becomes thetime to start over and try something entirely different.Marika and Howard Stone, co-authors of Too Young toRetire (Penguin, 2004), have become gurus for boomers looking for thedream job that will carry them through the second half of life.The couple's book, a popular text in business start-upcourses,suggests 101 jobs for "the open-minded" -- everything from a karaoke DJ("turn your love for people and disco music into a career and partydown") to a reunion organizer ("families and former classmates arepulling together once again, but not everyone has the time or talent toorganize a reunion")."This isn't a work of fiction; these are real jobs," Mr. Stonesaid. "Ask yourself what you have a passion for and then go for it."Anyone wanting to start a business needs to start with abusiness plan, experts say."Great concepts can fail because of poor execution," said MikeHernandez, a past president of the Dallas chapter of SCORE, a nonprofitgroup that works with the U.S. Small Business Administration. "Abusiness plan spells out how to turn an idea into reality."
Mr. Hernandez said SCORE's volunteer corps of retired businessexecutives can show prospective entrepreneurs how to write a plan."People often underestimate the money they'll need to getstarted," he said. "As a rule of thumb, I recommend putting up 20percent to 30 percent of the cost. Lenders reviewing a business planwill expect that from you."Mr. Fairbrother suggests turning to professionals for helpwithlegal and tax issues. The National Association for the Self-Employedoperates a hotline (1-800-232-6273) for members with technicalquestions.When Connie Baird, 60, created a Dallas-area food brokeragethree years ago, she relied on an attorney's advice that a corporationwould be the best legal structure for her business.She has also had an accountant handle her business taxes."If you don't know how to do something, hire an expert whodoes," she said.Despite the challenges of self-employment, many 50-plusentrepreneurs say their only regret is that they didn't do it sooner."I may work more hours some weeks, but they're my hours," Ms.Taylor said. "I don't have to haul a briefcase through high-rises andgarages anymore."Health insurance costs are a shockerThe biggest surprise for many baby boomers who start their ownbusinesses is the high cost of health insurance.
"Coming from corporate jobs where they've hademployer-subsidized group coverage, many suffer sticker shock when theybegin shopping for health insurance for themselves," said GeneFairbrother, a consultant for the National Association for theSelf-Employed.Premiums for individual policies can easily exceed $500 amonth, and that's assuming a pre-existing condition doesn't disqualifysomeone."The best solution is to get onto a working spouse's grouppolicy," said Lynn Karoly, a senior economist with the RAND Corp."Otherwise, it's catch as catch can."Diane D'Agostino-Smith, who started a life-coachingconsultancyout of her Rowlett home, bought an individual policy through AARP's"health care options" program and pays $540 a month. Before that, shepurchased coverage through the National Association for theSelf-Employed.Bob and Cathy Dammeyer's 3-year-old frozen-drinkdistributorship spends more than $6,000 a month for coverage for thecouple and their four full-time employees.Source: The Dallas MorningNews. Powered by Yellowbrix.
Source: Money & Work
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