Why Your Baby Boomer Business Needs To Be "You Proof" (Encore Careers)
As baby boomers one of our biggest fears as we face retirement is whether we will out live the money we have for retirement. That is a question for everyone, regardless of how much we have been able to save.
The Solution to the biggest fear of baby boomers facing retirement
As a boomer considering retirement, one of the best suggestions for us is to find ways to continue to generate income during retirement. That advice commonly comes in three forms:
- Delay retirement so that the money you have saved can continue to grow.
- Create an encore career that allows you to continue to work but in a way that gives you more flexibility to enjoy a form of "semi-retirement".
- Create a special form of encore career where you start a business that will allow you to continue to earn an income in retirement. This is often called becoming an encore entrepreneur or an "encorepreneur".
The Solution to the second biggest fear of baby boomers facing retirement
With all of these options, the big problem is that they don't directly address the second big fear of baby boomers facing retirement. That is whether their health will deteriorate or consume their savings in a faster then normal rate.
Of course, we can do all the things that increase the odds that we will continue to be healthy. We can eat well, exercise, and manage our stress. Yet there is not guarantee we will be successful. So the next challenge is to find a way to continue to have income even if our health deteriorates.
The best answer to that comes from becoming an encore entrepreneur in a specifically defined way to be able to have your business run whether you are in good health or not.
The task is to build a business where you own it but it does not depend upon you having to do the work for it to operate day by day. This is beyond the concept of being an absentee owner. It is more about having systems in place to do the business and a team to manage the systems. Ultimately, your job is to train and develop the team.
This may sound like a dream. Yet this happens in reality. There is already documented evidence that businesses designed around this concept sell better than businesses that depend upon the owner being constantly present to operate the business. You probably don't think about this, but you come in contact with this daily. The most common and visible place is in dealing with franchised businesses.
My favorite example is a McDonald's restaurant. When have you ever gone into a McDonald's and depended upon knowing who the owner is to make sure you get your order? Have you ever seen an owner in a McDonald's? You don't really know...do you?
So how is this possible? They have systems that define the work and a management team to oversee the systems. The result is that teens do the daily work to generate multi-million dollar businesses, not only in your neighborhood, but in "identical" businesses around the world. These are teens wearing clean uniforms, smiling at senior citizens, and keeping the place so clean that it will pass most any health test. Is this your mental image of the average teenager?
How can you create a systems designed business for your encore business?
The first step is decide that this is really possible. One way to convince yourself is to read the work of Barry Neighbors and what he calls the "hit by a bus test". Follow the link in this post to his great article called Is Your Company "You Proof"? Can it Survive the "hit by a bus" test? He advocates making your company sellable by improving your systems. He lists why companies that pass the test get higher valuations from prospective owners. It is only a small step to realizing why such a business is of higher value to you as a baby boomer in retirement.
If you want more tips on how to develop your entrepreneurial mindset, join our mailing list. My Baby Boomer Business Dream.
Brought to you by Shallie Bey, Founder - Smarter Small Business Blog
~ The Business Dream Weaver