Posted on: Wednesday, April 21, 2004
Boomers lured by self-employment
By Michael J. Martinez
Associated Press
NEW YORK — Gig Wilkowsky decided it was time to change his life. A veteran sales executive, he left a job that kept him on the road five days a week and started his own business, joining a growing number of baby boomers who have become entrepreneurs.
Wilkowsky, 50, was earning a comfortable salary during his 23-year sales career with a national sunglass company. But a punishing schedule made him feel like a stranger in his hometown, and he saw his wife only on weekends.
"I lived in Atlanta for 20 years," Wilkowsky said. "I knew my neighbors and my wife's friends, and the guys at the airport who took my bags on Monday morning."
Millions of boomers, whether they left long-held jobs by choice or were unexpectedly laid off, have discovered a sense of ownership and unexpected freedom as entrepreneurs. According to a recent survey by the AARP, 40 percent of all people in business for themselves in the United States are older than 50, with that percentage rising in recent years.
"Boomers are leading the way in this entrepreneurial wave," said Tony Lee, editor in chief of StartupJournal.com, a site for small businesses. "They have the resources and the built-in talents, and there are ways for them to work for themselves without starting from scratch."
Boomers are finding two avenues for self-employment that don't require starting from whole cloth — franchising and consulting. Franchising provides a support system for new entrepreneurs in the form of the franchiser's guidance and a network of other franchise owners, while consulting allows the newly self-employed to make use of his or her existing skills.
Wilkowsky spent a year looking for a way to work for himself, even setting up his own corporation with the thought of continuing his work selling sunglasses on his own. But the idea of buying a franchise became more attractive as he considered the startup investments that creating a business from scratch would require.
"Here I am, walking away from a big income, benefits and an expense account. The franchise gave me hope that if I fell, the parachute would catch me on the way down," Wilkowsky said. "They can't guarantee you anything, but they wouldn't let you step off into a deep hole."
Today, Wilkowsky owns a 5-year-old Signs By Tomorrow franchise in Atlanta. Although Wilkowsky didn't know anything about making signs — the franchiser taught him how to do that — he knew how to sell. His store is now the company's top franchise under 10 years old.
"If I have an issue, I can call other franchise owners and ask what they've done. We talk about business problems and solutions," he said. "Without the franchise network, I would have had to learn it from the ground up."
Margo Spellman, 49, of Seattle chose the other option.
After working in marketing and communications for the Port of Seattle and, subsequently, the Pacific Northwest Ballet, she struck off on her own last summer, joining her sister in a small public relations consultancy catering to local businesses.
She quit her job fearing she might lose it anyhow, particularly given Seattle's declining economy since the dot-com bust. What she gained was a more fulfilling work experience.
"I put way more energy into the actual work, the product," Spellman said. "I spend way more time writing, working on campaigns and things."
In a few months, their client list has grown to include a number of restaurants and retailers.
However, just because consultants are familiar with their work, and franchise owners receive help in making their businesses successful, doesn't mean there aren't hurdles. Boomers seeking to work for themselves should make sure they have a comfortable nest egg, at least a year's salary or more, to live off while they start the business. A spouse or partner who has health insurance can help defray those costs.
They also need to expect to learn new skills, sometimes in a hurry.
"The record keeping, bookkeeping side of it was tough. The franchise helped a little bit, but there's only so much they can teach you in a couple of weeks," Wilkowsky said. "It gets better, though. A year and a half later, you go, 'Oh, now it makes sense!' "
Success also requires more than opening a store front, or hanging out that consulting shingle. New entrepreneurs still have to sell themselves, no matter how successful they've been in their first careers.
And don't expect self-employment to equal slowing down in any way.
"I feel like I'm always behind, and getting your head around that when you're your own boss and doing your own thing is hard," Spellman said. "My biggest challenge is being able to stay away from the computer, not checking it 24-7."
