Never Too Late: Entrepreneurial Bug Hits Seniors

By Steve Charing, STAFF WRITER



Many entrepreneurially-minded young people graduate from colleges and business schools wide-eyed and eager to start their own companies. Or they may work for someone else for a few years before they realize they'd prefer to be their own boss.

But not everybody interested in starting a business is a Bill Gates, Michael Dell or Facebook's Mark Zuckerman, who launched their ventures before age 21. What is becoming a trend, however, is that an increasing number of "mature" individuals in their 50s, 60s and beyond eschew the leisurely realm of retirement to begin their own business. As millions of better-educated, experienced, healthier, wealthier and tech-savvy baby boomers slide into their senior years, we can expect this trend to continue.

It wasn't that long ago when it was considered an anomaly for a senior to embark on a business enterprise. Folks were amazed when Harland "Colonel" Sanders used $105 from his first Social Security check at the age of 65 to start the legendary Kentucky Fried Chicken fast-food chain. Today such endeavors are becoming commonplace (though they may not match KFC's earnings).



Entering a New Phase

Whether it's due to fear of boredom or out of economic necessity, quite a few seniors have been putting away the golf clubs to enter a new, dramatic phase of their life. Based on a survey conducted by Careerbuilder.com, 51% of workers age 50 or older plan to retire after age 65; 16% will wait until after age 70. That leaves a large pool of seniors still interested in continuing to work - for others or for themselves in a new entrepreneurial endeavor.

According to John A. Challenger, chief executive officer of Challenger, Gray & Christmas Inc. and a recognized expert in workplace, labor and economic issues, self-employed individuals over age 55 in non-agricultural jobs are one of the fastest growing sectors of entrepreneurs. Seniors ages 55 and up account for more than a quarter of those self-employed, second only behind the 45-54 age group.

Clearly the falling economy and its attendant corporate downsizing is a major incentive for seniors to start their own businesses. Adding to the economic uncertainty is the volatility in the stock market, where sinking equity values have swallowed major chunks of individuals' retirement savings.

Job losses or the threat of such losses could shape the decision for older workers to start their own business. This is underscored by the bleak economic outlook for 2009. "A surge in layoffs is expected to extend into the first three to four months of 2009 as retailers, airlines, consumer products manufacturers and other sectors of the economy absorb the impact of significantly lower holiday spending by consumers," Challenger predicted.



Seeking a Second Career

The souring economy is not always the determining factor in putting off retirement. There are individuals who simply want to embark on a second career.

Rick Johnson, 55, retired from the Hagerstown Police Department at the rank of lieutenant after 26 years of service. Having experienced the darker side of life, he wanted to try a new line of work and, at the same time, make a positive difference in the community.

His son, Matt, was a baseball player in college, and they saw this opportunity to open an Extra Innings franchise in Hagerstown, which they did in December 2006 using their own capital and a loan from the Small Business Administration. Extra Innings houses an indoor softball and baseball batting range, workout areas and a pro shop, and offers personal instruction to developing players.

"I'm a 'type A' personality," said the elder Johnson. "I feel I have to contribute to the community. Working with Matt and doing something I love has been great." Matt Johnson is the general manager at Extra Innings, and the two have acquired additional partners and plan to open a second location in Frederick in a few years.



'Great Sense of Accomplishment'

After 17 years, Horace Usry, 52, left the investment banking profession in February 2007. He thought he could simply retire, but it wasn't to be. "I took a little over a year to sort things out, but I realized I needed a second career," Usry explained. "I wanted to find a business where I can take advantage of my being a people person and my experience in financial markets."

Usry and former business associate Carter Rise decided to purchase a franchise in Value Place, a profitable chain of more than 120 extended stay hotels. The partners are establishing three new properties in North Carolina and plan to open up their first of possibly five Value Place hotels in the Baltimore-Washington area in 2010.

"I enjoy seeing a project to completion," said Usry. "From selecting a location, to obtaining the necessary titles, to building the hotel and hiring people, I feel a great sense of accomplishment."



Opening New Windows

Steven Bursten, 71, and his business partner, Steve Wishnow, 64, whose paths crossed about five years ago in the fitness room of their Bethesda condominium complex, launched their second careers together.

Bursten drew upon his nearly 50 years of experience in the home decorating industry to begin the endeavor. He had owned a number of businesses in the past, and had developed the original window coverings training program for the industry in 1969.

Wishnow formerly managed a $141 million ad budget for Hecht's, the largest May Company (now Macy's Inc.) store division, and in his time had been recognized as the leading advertising executive in the window coverings industry.

Thus, a new venture in window treatments seemed natural for the pair.

Both had briefly been retired from their respective careers. But in 2004 they launched Exciting Windows! and have grown the company to more than 80 "members" (franchises) in 32 states, plus the Caribbean. Bursten and Wishnow expect to have at least 125 members by the end of 2009, with the majority of growth generated by franchising.

"After three months [of retirement] my wife said, 'If you don't get a job, you have to get out of here,'" Wishnow said with a smile. But in actuality he was attracted to the challenge of building something from scratch - something meaningful.

"I'm driven by the challenge and to learn new skills. But there is not a window of 30 years; you have to make it work in six or seven years."



Experience Counts

Age didn't seem to be a deterrent for starting Exciting Windows! "Once you decide to start a serious business, customers really don't care if you're 70 or 35," said Bursten at his Bethesda office. "They want to be taken care of."

Having the capital needed to launch a business venture helps, too. "When I started at age 32 or 33, it took 10 years to get where we are after three or four years because I didn't have capital," Bursten pointed out. He and Wishnow used their own equity to start the business.

And the experience amassed during a successful career helps avoid bad decision-making in a new startup, a point Wishnow emphasized. He also feels more in control of his financial future. "Am I better off investing in my own company or investing in the stock market?" he asked. "I'd rather invest in my own company where I have control over it."

This experience helps reap the rewards of a new venture, Bursten said. "It's more fun today than when I started because you have some capital, you have some stability and you have experience, and you know what you're doing."