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About ten thousand Baby
Boomers are reaching retirement age every day in the United
States. At least two-thirds of these Boomers must generate
funds in order to financially survive. Many more simply wish
to continue working, even if it is part-time. Many are
planning to start a home-based business and are asking
themselves, “"What type of home-based business should I
pursue?" An important aspect of this decision should be an
exit strategy that allows transition to full retirement at
some point.
 The
obvious way to launch a home-based business is to leverage
one’s work experience, contacts and expertise to create an
enterprise that can be run from a home office. In most
cases, this is the fastest path to success. If you enjoy
what you did career-wise, this approach is an easy extension
of your prior job. Planning ahead, one can even establish
consulting contracts with an employer or his clients. The
result can be a smooth transition with minimal cash flow
impact.
Many Boomers, however, wish to launch a second career in a
new arena, such as opening a bed and breakfast or becoming a
teacher. This takes more investigation and planning, ideally
accomplished well in advance of retirement. There are ample
resources on the Internet (much of it free!) to assist with
this process.
For older Boomers who have found themselves suddenly
unemployed, time is usually of the essence. Typically, they
are seeking a source of income with little start-up time.
Unfortunately, finding another job is difficult for 50-plus
Boomers.
Many laid-off Boomers compensate by putting up a quick
website and trying to leverage their experience into a
consultancy business, but soon realize that this road too
has a start-up period while clients are procured. Others
seek “instant businesses” in the form of established
multi-level marketing operations or franchises, only to
discover that these too are not “slam dunks.”
There is rarely an easy road to riches. Moreover, launching
a home-based business is a process that is usually
accompanied by anxiety and mounting credit card debt.
For those who make a successful transition to operating a
home-based business, there is one more important
consideration. At some point, they will want to really
retire or at least cut back on their involvement in the
business. Then, it would be nice to have something that
provides ongoing residual or passive income. This goal
should be part of the upfront planning in establishing a
home-based business. Otherwise, it can be a costly and often
devastating afterthought.
If a home-based business or franchise establishes a
profitable, verifiable revenue stream from contented
customers, it can usually be sold. The profits can then be
invested for passive income during retirement. Again, the
business plan must include this as an ultimate objective and
be implemented accordingly. If the business does not
generate satisfied return customers, its “good will” value
is minimal and finding a buyer or achieving a good sales
price will prove difficult.
There are other ways to generate passive income from
home-based businesses. Membership and subscription-type
businesses are good ongoing revenue generators. So are
royalties from self-published ebooks. And carefully-screened
MLM opportunities can yield continuing income streams as
well. So achieving “retirement” may be as simple as
transitioning the daily operation to a buyer or someone who
is hired to manage it.
The lesson is clear. If you create or purchase a business,
do so with the objective of creating intrinsic value that
makes it possible to sell – or step back from - the
operation at some point. An “exit strategy” is an important
consideration for any home-based business, and older Baby
Boomers should plan for this.
One’s ultimate success, of course, depends on whether you
enjoy what you are doing. Older Boomers have been to a few
rodeos in their time, and they know that it is better to
spend time doing something that rocks one’s soul! When that
occurs, it's really not "work." Launching a home-based
business one truly enjoys effortlessly creates the
motivation to spend the time, energy and resources necessary
to achieve success.
About the Author
Al Kernek is a Internet marketing consultant, author and Baby Boomer. Learn more about issues facing Baby Boomers seeking to retire on a fixed income at www.BabyBoomerLifeboat.com which is also an online portal to Websites containing valuable information and resources for Baby Boomers.
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