01:10 PM CST on Wednesday, December 20, 2006
After more than 20 years in corporate jobs, Bob and Cathy Dammeyer of Dallas had become weary of all the travel and meetings, the politics and bureaucracy. The fiftysomething couple pondered early retirement.
"Bob bought an antique car, and I bought a pickup truck, and we were going to see what the end of the road looked like," Mrs. Dammeyer said.
Then reality dawned, and they figured they were too young to retire. So they went into business for themselves, selling Swirl frozen-drink distributorships. Three years later, the Dammeyers' company, Culpepper Sales, does several million dollars in business annually.
"It's rejuvenated us," Mrs. Dammeyer said. "We don't worry about corporate minutiae anymore. We only have to satisfy ourselves."
The Dammeyers represent a growing breed of baby boomers who have started their own businesses at a time of life when other people have begun to think longingly about retirement.
Workers 55 and older represent one of the fastest-growing groups of the self-employed, says consulting firm Challenger, Gray & Christmas. The number of 55-plus Americans working for themselves has increased 28 percent since 2000, compared with stagnant or declining self-employment for most other age groups, according to a Challenger analysis of government data.
Today, baby boomers and seniors account for 56 percent of the nation's self-employed workers, the firm says.
"Boomers will use self-employment as a bridge to retirement," said Lynn Karoly, a senior economist with the RAND Corp.
Many boomers intend to work longer than previous generations, but they want to work on their own terms, she said.
"They're creating jobs that give them more control over their lives and more self-fulfillment," said Ms. Karoly, who co-wrote a report on Americans 50 and older who have become their own boss.
By the time Diane D'Agostino-Smith of Rowlett entered her mid-50s, she was putting in 15-hour days as an oil company executive's assistant.
"My work had taken over my life," she said. "I felt like I couldn't even take the 30-minute exercise break my doctor had recommended."
When her health began to slip, she knew she had to get out. After returning to school, Ms. D'Agostino-Smith set up a life-coaching practice to help others choose new careers.
She runs her business out of her home and values working her own hours.
"I took a difficult situation and changed it into something positive for myself and others," she said. "I'm proud of that."
John Challenger, chief executive officer of Challenger, Gray & Christmas, said the corporate downsizings of recent years have provided another impetus for elder entrepreneurship.
Older workers accept buyouts from employers, but without traditional pensions or retiree health benefits, can't afford to retire, he said.
"The irony is that many companies' new openness to outsourcing and hiring independent contractors to perform certain tasks is creating business opportunities for the self-employed," Mr. Challenger said.
Experts agree that starting a business, whether by choice or necessity, is not for the faint of heart. The hours are long. The risks are high. And, as some self-employed boomers have discovered, friends may even question your sanity.
Mrs. Dammeyer advises new entrepreneurs to come up with a short speech to deliver to doubting friends and family.
"Some people will think you're crazy," she said. "So for your self-confidence, you've got to explain to them why this is the right move for you."
Gene Fairbrother, a consultant for the National Association for the Self-Employed, said the biggest challenge for many people is deciding what kind of business to open.
Staying in one's industry reduces the risks, because the new entrepreneur will have experience in that field and a Rolodex of business contacts, he said.
At 50, Karen Taylor of Richardson started her own public relations firm, Southwest Ink, after working in advertising and public relations much of her career.
She credits her network of contacts with helping her land her first clients.
Now 63, she says some of her business relationships date back more than 20 years.
"My longer-term clients have become close friends," she said.
For many of the self-employed, however, midlife becomes the time to start over and try something entirely different.
Marika and Howard Stone, co-authors of Too Young to Retire, have become gurus for boomers looking for the dream job that will carry them through the second half of life.
The couple's book, a popular text in business start-up courses, suggests 101 jobs for "the open-minded" – everything from a karaoke DJ ("turn your love for people and disco music into a career and party down") to a reunion organizer ("families and former classmates are pulling together once again, but not everyone has the time or talent to organize a reunion").
"This isn't a work of fiction; these are real jobs," Mr. Stone said. "Ask yourself what you have a passion for and then go for it."
Anyone wanting to start a business needs to start with a business plan, experts say.
"Great concepts can fail because of poor execution," said Mike Hernandez, a past president of the Dallas chapter of SCORE, a nonprofit group that works with the U.S. Small Business Administration. "A business plan spells out how to turn an idea into reality."
Mr. Hernandez said SCORE's volunteer corps of retired business executives can show prospective entrepreneurs how to write a plan.
"People often underestimate the money they'll need to get started," he said. "As a rule of thumb, I recommend putting up 20 percent to 30 percent of the cost. Lenders reviewing a business plan will expect that from you."
Mr. Fairbrother suggests turning to professionals for help with legal and tax issues. The National Association for the Self-Employed operates a hotline (1-800-232-6273) for members with technical questions.
When Connie Baird, 60, created a Dallas-area food brokerage three years ago, she relied on an attorney's advice that a corporation would be the best legal structure for her business.
She has also had an accountant handle her business taxes.
"If you don't know how to do something, hire an expert who does," she said.
Despite the challenges of self-employment, many 50-plus entrepreneurs say their only regret is that they didn't do it sooner.
"I may work more hours some weeks, but they're my hours," Ms. Taylor said. "I don't have to haul a briefcase through high-rises and garages anymore."
E-mail bmoos@dallasnews.com
1 comment:
This was a wonderful story on baby boomers.
I was most intrigued by Bob Dammeyer's Swirl Brand company.
I've tried the drinks in Chicago and in Lake Forest.
Amazing!
God bless Bob and Swirl!
Best wishes,
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