People change gears in mid-life often to start something new. And why not? Age is just a number, and becoming an entrepreneur later in life can bring unique advantages and opportunities. Though entrepreneurship comes with challenges and a lot of hard work, many make the decision to embark on a new venture anyway. In fact, though people age 55+ make up only 21% of the U.S. population, they own more than half of U.S. small businesses, according to a recent survey published by SCORE. Experience, expertise, and an extensive network accumulated through the years prove very helpful to those starting new businesses later in life.
Have you thought about going out on your own? Why or why not? And why do so many decide to purchase franchises as opposed to building a start-up business?
Why Do People Decide to Become Entrepreneurs at Age 50Plus?
The reasons vary from person to person. Some people say they reach a point in their lives where they want to start a new business that allows them to pursue interests or long-held dreams they may not have had the opportunity to explore earlier in their careers. Others decide at 50Plus to embark on a new venture to have a more meaningful and fulfilling career. A desire for independence and autonomy and more flexibility are reasons we hear often as well.
Of course, financial reasons often factor into the decision too. An older adult may face retirement savings challenges or financial uncertainty for various reasons, such as an economic turndown. And let’s not forget about ageism which can limit opportunities for older individuals in traditional employment settings. By becoming entrepreneurs, they can break free from these constraints, prove their capabilities, and challenge age-related stereotypes.
Why Purchase a Franchise for Your Second Act?
Some people choose to start a business from scratch. One of the common reasons to create a start-up is to save the fees associated with purchasing a franchise. However, buying a franchise can offer several advantages that may appeal to individuals, especially those in their 50s and beyond. It may save you money in the long run.
It’s important to note, though, that established franchises come with some considerations. Franchisees must adhere to the franchisor’s rules and regulations, pay ongoing fees, and may have limited flexibility in making business decisions. It’s essential to thoroughly research and assess the specific franchise opportunity to ensure it aligns with your goals, skills, and preferences.
Benefits of Purchasing a Franchise
Here are some of the benefits of purchasing a franchise (vs. embarking on a start-up business):
Established business model
Franchises provide a proven business model with a track record of success.
Brand recognition
Franchises often come with a recognized and established brand name, which can provide instant credibility and customer trust.
Training and support
Franchisors typically offer comprehensive training programs and ongoing support to franchisees.
Marketing and advertising
Franchises often have dedicated marketing and advertising strategies in place.
Access to suppliers and resources
Franchises often have established relationships with suppliers, which can lead to favorable pricing, reliable inventory, and access to quality products or services.
Reduced decision-making
For individuals who prefer a structured approach or who may have less experience with entrepreneurship, a franchise can offer a set of established guidelines and processes to follow.
Lower failure rate
Compared to startups, franchises tend to have a lower failure rate. The established brand, business model, and support from the franchisor contribute to a higher likelihood of success.
Community and networking
Franchise systems often provide a network of fellow franchisees who can offer support, advice, and collaboration opportunities
Franchise Owners Answer Common Questions About Franchising
We spoke with some successful franchise owners with whom we work to obtain answers to commonly asked questions.
Robbie McCullough, CSA®– Assisting Hands
Question: With so many franchise opportunities available in just about every field, how did you narrow down which area might be the best fit for you?
“After 30 plus years in Corporate America, I decided to reevaluate my next career move due to yet another corporate restructure.
I knew I wanted to leave Corporate America where I worked as an Employee Benefits Broker, and instead own my own business. As I spent most of my career working at the corporate level with virtually no personal interaction, I yearned to work in a locally-based business that provided personal service. I wanted to help people and make a difference in people’s lives, yet wasn’t quite sure what that meant in terms of a business.
I sought help from a franchise broker I knew and trusted. She took the time to do a skills and personality assessment with me. I highly recommend those looking for their next opportunity to engage a professional to help with your decision-making.
From these tests, I learned I was a caregiver. Then, I discovered businesses exist doing just that. From there, we searched for franchisee opportunities across multiple verticals. After eliminating many that did not hit the right buttons, we ended up focusing on home care. We focused from there on four or five different opportunities. I dug deep into all of them, which included more than a few site visits, working diligently for over six months to assess these options.
Eventually, I chose Assisting Hands Home Care. This franchise opportunity was the clear winner for me for a variety of reasons. The most critical reason was their culture of “FOMO”, which means “Friends of Franchise Owners”. This culture, where the franchise owners treat each other with respect and dignity as you would your own family, resonated with me. I not only wanted a meaningful position where I helped people in need, but it was essential to me that I enjoyed and highly regarded those with whom I worked.”
Andrew Siegel, MBA – the Junkluggers
Question: What specific questions do you recommend asking a franchise owner before you buy?
What was your biggest surprise when you opened the business?
Every business comes with its own surprises, which is one important reason we buy a franchise – to minimize these. That said, every franchisee will likely have a few to share and if you hear the same from multiple franchisees, that is a message you need to consider carefully.
Are you profitable? If not, why not, and when do you expect to be profitable?
The bottom line is we buy franchises to make money. Most businesses go through a ramp-up period, but how long it will take is critical to ensure you have enough money in reserves to get to cash-flow positive.
Do you have any regrets about your decision to buy your franchise?
Everyone has some regrets; it is just important to understand what they are.
What does an average day look like for you?
Absentee or semi-absentee businesses are hard to find and usually very expensive to purchase, especially when starting from the ground up. If you buy an existing business (franchise or not), that is an entirely different discussion. Therefore, it is essential to understand what you will be doing on a day-to-day basis and whether or not it is a good fit for your personality.
What is the mission of your franchise, and do you believe in it?
At The Junkluggers, where we offer an environmentally friendly alternative to traditional junk removal, our Mission is to “Enhance Lives, Our Community, and the Environment by Donating, Recycling, and Supporting Local Charities.” I believe wholeheartedly in this mission and live it to the extreme. Additionally, I love the fact that while I own a for profit business, we make charitable donations EVERY DAY.
One final comment: I recommend that anyone considering buying a franchise find a franchise broker they trust.”
Amandita Johnson, CSA®,MBA – Care Patrol
Question: What are the pros and cons of choosing a franchise over creating your own start-up?
“I made the decision to reinvent myself in part due to my mom’s terminal illness and eventual passing. I learned first-hand the stress involved in watching a loved one decline and transition from hospital to hospice. During the pandemic, I also became acutely aware of the vulnerability of older adults and wanted to be part of the solution. For that reason, I decided to enter into the senior placement space.
Why did I decide to purchase a CarePatrol franchise instead of starting a senior placement business from scratch? First, I learned that CarePatrol, comprised of 170+ owners nationwide, started the senior advising and placement industry in the early 1990s. As part of this extensive organization, I have access to knowledge and strong expertise already proven in the field. I can choose to ask advice from many owners. A franchise arrangement also provided me with marketing, IT and training support for the business. I like following a structure and set of guidelines when working and CarePatrol already built a formula for success. The risk is low based on the data of successful entrepreneurs. I loved the idea of providing a valuable service to families for free because we are paid by thousands of providers in our network is another attraction to me.
One con of purchasing a franchise is the franchise fee. Obviously, you don’t pay these fees in a start-up. But I believed a start-up would cost me more. If I were to create a senior placement business from scratch, I would be lost. My practical knowledge of the senior industry was minimal though I had over 25 years of work experience that included teaching music and 17 years in the healthcare insurance space. I never previously invested a huge sum of money into a business, and I did not want to take chances. I knew I did not have the expertise needed to oversee all the marketing, IT, and training myself. Sure, I would have more control over all aspects of the business including the structure with a start-up, and no franchise fees, but doing it that way seemed far riskier to me.”
Is Buying a Franchise for You?
If you are considering purchasing a franchise, we recommend two things first and foremost. The first is to follow your passion. Do something you love! The second is to do your research. Dig deep into the business, ask thoughtful questions, know the costs involved, and become an expert in the field if it is a new area for you!
It is important to make sure the business is a good fit for you, and one where you can not only be successful, but you are proud to represent.
