Why Your Greatest Business Competition is Your Grandpa

Seasoned entrepreneur: an entrepreneur aged 55+. Also known as the self-owned business professionals giving young entrepreneurs and established corporations a run for their money.

Despite common held beliefs to the contrary, retirees and those nearing traditional retirement age can have a significant advantage when beginning their own business. They have a stable base to launch successful ventures that provide satisfaction and a lasting legacy, and their numbers are increasing. Why?

Seasoned entrepreneurs have the knowledge

The fresh-from-university whippersnappers may have fresh ideas and what they need on paper to get started but they don’t have decades of practical experience. Unfortunately, young workers with degrees are sometimes favored for promotions and make mistakes the experienced workers wouldn’t have made. The business suffers and the older employees suffer. For this reason, many nearing retirement age start smarter, more streamlined competing businesses.

Seasoned entrepreneurs aren’t agonizing over the old sole proprietorship vs. LLC debate. They aren’t wondering how to handle their taxes. They’re not looking for mentors and wondering “who they are.”  They know this stuff, and they’re ready to put that knowledge to use.

Plus, the explosion of administrative technologies has given hesitant seasoned entrepreneurs unprecedented opportunities to run successful businesses without fear of day-to-day business tasks. Services like cloud-based organizational apps connecting smart devices, email services to automatically interact with customers, and cloud accounting software simplifies tracking your finances and business health. And the best part? Most of this software is free.

Seasoned entrepreneurs have a network

Seasoned owners have an established sales channel. It’s impossible to walk away from 20+ years in an industry without having accumulated a vast network of connections: suppliers, manufacturers, storefronts, etc. Most of these working relationships are also friendships, and the network wants to see the seasoned entrepreneurs succeed. It sure beats the cold-calling of young entrepreneurs.

Seasoned entrepreneurs have funding

The median retirement income for retirees age 55-64 in the U.S. was $62,802 in 2016, $47,432 for ages 65-74, and $30,635 for ages 75+.

To seasoned entrepreneurs who have eliminated debt and planned wisely for retirement, that income looks like more than white sand beaches–it looks like venture funding. Beginning a business or purchasing a franchise multiplies retirement income, providing more financial freedom and a legacy business to the seasoned entrepreneur’s family.

Seasoned entrepreneurs have time

Young entrepreneurs and workers have young families and college contending with their work time. Many people nearing 55+ are empty-nesters or have teenagers capable of seeing to their own needs. Depending on their choice of entrepreneurship, seasoned entrepreneurs can transition their current employment hours into their own business hours, or less.

Retirees face decades of free time. A part-time business, freelancing or consulting service, or a business run by a manager allow time for hobbies and travelling. Seasoned entrepreneurs don’t have to give up their retirement fantasies to start a business–they incorporate it instead.

Seasoned entrepreneurs have a long runway

Many “young” older workers still have decades more to give to their field or to try something new. Advances in medicine extending quality of life provide optimism and a winning attitude to retirees. Corporations using many technically legal tactics to force “young” older workers to retire can expect to hear more “I quit” speeches and see their underestimated employees launch competing businesses.

Seasoned entrepreneurs aren’t ready for quiet years of bird-watching and want to avoid the dangers of sedentary retirement. This attitude along with the other advantages of experience, time, funding, and helpful technologies are ushering entrepreneurships into a new era: your greatest competition are your wise mentors.

 

This informative article was contributed to Leisure Freak by Jaren Nichols.

Author profile

Seasoned entrepreneurs-Why Your Greatest Business Competition is Your GrandpaJaren Nichols is Chief Operating Officer at ZipBooks. Jaren was previously a Product Manager at Google and holds an MBA from Harvard Business School.

6 thoughts on “Why Your Greatest Business Competition is Your Grandpa

  1. Nice! As a slightly early retired engineer I was able to walk away from my 9 to 5 in a Fortune 500 company to immediately making six figures in my retirement working only one day a week. And I could charge my clients much more or I could work more but I don’t need the money. I don’t need any money actually but the work is fun and keeps my mind challenged with complex problems to solve. I do not have to market myself, people seek me out from my network because they know I have valuable knowledge. I have no competition in my niche areas from any millennials, they do not have the experience to compete with me. I’m not really sure why more guys like me don’t take advantage of the opportunity to have fun with their own business after they retire. I did spend years while I was working thinking things out in advance and building a great network. I suspect that many people just did not think as far ahead and cannot figure out how to find a market that doesn’t know how to find them. Everything you wrote really rang true to me.

    1. Thanks for the comment Steveark. Your story is a great example of how to do it right. As long as you enjoy what you are doing, keep your brain active, and meet all your non-financial aspects of early retirement, any income large or small is all gravy. As the post said, experience and knowledge are big reasons why seasoned entrepreneurs have an advantage and all they have to do is do it, just as you have.
      Tommy

  2. This is the reason why I believe young, ambitious entrepreneurs that came out of college should not start a business with whatever budget that they have. They are just too young. In my opinion, you need to have at least 5 years of experience to get a good grasp of running a business and at least 10 years to handle your own very well, not perfect, just well. And that is why I agree with your point that retiree entrepreneurs have an edge over their young competitors. Yes, young adults know how to utilize the technological tools to handle a business, but there are just some things you can’t do without experience.

    1. Thanks for the comment Jamie. Youth has its advantages, like you say, technical savvy and also immense energy to tackle everything that comes. Lacking experience means possibly doing things the hard way. I was 25 when I started my first small business which today would be considered a side hustle. I leaned on the fly with lots of mistakes made so it was good that I had a full time job to cover my expenses while I gained business experience. That said, everything I learned I see as valuable and one of the biggest reasons for my life’s financial success.
      Tommy

  3. Great point. Young people nowadays may have a better knowledge when it comes to handling technology, but still nothing beats years of experience which the veterans have.

    1. Thanks for the comment Karen. I think that experience may limit mistakes and increase strategic focus but the young will eventually gain experience if they hang in there and learn from mistakes and even from senior peers. Its all about time and effort.
      Tommy

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