Starting Over 
Older workers often find they have a new lease on life when they turn to entrepreneurship.

By Ellen Jensen

Older Americans are more robust than ever, and when they reach retirement age, many of them are not content simply to hit the golf course, tinker in the garage or even travel.

"Our oldest employee is 84, and I had an electrician over to the house the other day who was 83," said Patrice Tribble, who became a first-time business owner in her mid-forties when she and her partner bought All World Travel. "Older people are keeping more active lifestyles."

Many would-be retirees are choosing entrepreneurship as a second, third or even fourth career. In fact, older entrepreneurs are increasing at a faster rate than other age groups. According to the Kauffman Index of Entrepreneurial Activity report, 0.34 percent of individuals aged 55-64 started a business in 2005, compared to 0.29 percent of individuals aged 45 to 54, 0.30 percent aged 35-44 and 0.26 percent aged 20-34.

The reasons these older Americans are choosing entrepreneurship are varied. Some have always wanted to own their own business, some are looking for flexibility and others crave the challenge entrepreneurship brings.

Typical Traits
The traits of older entrepreneurs include a fair amount of self-confidence and comfort with themselves, said Cheri Streeter, director of the Johnson County Community College Small Business Development Center. That quality is important because many end up starting businesses in unfamiliar industries.

For example, Rod Jantz, who now is in is mid-50s, spent 26 years working in a clinic as a veterinarian before buying The Great Frame Up, which specializes in art and custom framing services. He said trying to learn all the administrative and design aspects of it was challenging, but he drew on available resources-such as the franchiser, the former owner and top-quality designers-to help.

Younger business buyers are more likely to be attracted to the financial performance of a company, even though it may not be as good a fit for them personally, said Tim Skarda, owner of Allied Business Group, a business broker. He added that although older entrepreneurs understand the necessity for profits, their motivations might be a bit more balanced.

"Often, older entrepreneurs don't need to work. They'll buy a business because they want it to be a part of their lifestyle," Skarda said. "Older buyers seem a bit more conscientious about the type of business they're buying and how it will fit into their lives."

Gary Cooney gave up on his telecom career at age 54 because of the constant turmoil in the industry. He tried a remodeling business, but it didn't give him the lifestyle he was looking for. Then he found out about Floor Coverings International, which turned out to be a better fit.

Challenge Craving
You can break down older entrepreneurs into a couple of categories, Streeter said. Some have had a steady career and decide they just can't spend the rest of their lives doing whatever they're doing.

"In many cases, they always wanted to start their own business, and, regardless of their economic situation, they decide to do it," Streeter said. "They may quit their job, or they may hang on to it while they start the business on the side."

Others, like Duey Williams, have gone as far as they can go in their careers. Williams, president of Skyline Displays Heartland, which specializes in trade show exhibits, was a funeral director before he went into selling caskets for a national company, first as an over-the-road salesperson and then in sales management. He did well in sales. The problem was that there was no advancement plan.

"I had been there, done that," Williams said. "I had been successful and had nothing to prove. I was bored. I need to be challenged."

Following a Passion
Some older business owners are fulfilling a passion. Jantz calls himself a frustrated artist. He started out as an art major in college but decided after his first year that he needed to go into something more lucrative.

"I wish I had stayed in it," Jantz said.

He was a veterinarian for 26 years, but after his kids left for college, he and his wife decided to pursue something related to art. When The Great Frame Up came on the market, the opportunity seemed perfect.

"I enjoy building and woodworking," Jantz said. "With this business, I get to be creative."

Covering Your Options
The economy is another contributor to the increase in older entrepreneurs. The Small Business Development Center at JCCC saw an obvious increase in older clients after Sept. 11, when many large businesses were downsizing. Many Kansas Citians in their late 40s and 50s found themselves without jobs but with much still to offer the business community.

"The displaced worker may have been given an early retirement option or has had a fairly well-paid position and has put considerable monies aside in retirement plans," said Streeter. "Many decide they are going to invest that money into their dream that they have always had."

Cary Clark was a branch manager for Hewlett-Packard in Kansas City for 20 years. Every year or so, he would receive a job offer at the company's headquarters in California. He turned down the offers because he wanted to stay in Kansas City. As HP went through some company culture changes, he was advised that at some point, he would probably not be able to turn down the promotions.

"That opened my eyes that I wouldn't be with HP for the rest of my life," Clark said. "I looked at what future options would be with a long-term employer and decided those options weren't what I wanted."

When he had the opportunity to go into business with a friend, he took it. They started a consulting company that focused on Y2K-oriented programming. After the turn of the century, his partner bought him out, and Clark bought a couple of UPS Stores. After receiving offers he couldn't refuse, he sold them and joined the University of Missouri-Kansas City's Institute of Entrepreneurship and Innovation, where he uses his experience to help young entrepreneurs.

At 66, Wayne Zetzman brought a financial background to the Complete Garage franchise he purchased in Lenexa. The Complete Garage is a home improvement store focusing on garage organization, including storage, floors and accessories. His experience included stints as chief financial officer for Payless Cashways and for the jewelry division of Target. When it came time to retire, he couldn't see himself settling down and playing golf.

"I'm in good shape and needed something to do to keep myself active, and I had always wanted to try to operate my own business," Zetzman said.

Zetzman liked the challenge, as well as the opportunity to leave something to his family, perhaps even entice one of his sons to come into the business with him.

Advantages
Older first-time buyers typically have ample financial resources to purchase a business, said Skarda. They tend to have saved a nest egg in home equity, 401(k) and other assets that can be easily converted to cash.

"Once they purchase a business, they tend to be better capitalized, which helps manage their first few years in business," he said.

Zetzman knew from his career experience what kind of work and effort it would take to make the business successful.

"I had accumulated a reasonable net worth," Zetzman said. "I had financing through the bank and enough credit to keep the business going if things didn't take off right away."

Streeter said older entrepreneurs are in a better economic position than most young entrepreneurs, and they have better money management skills because they've been managing money for half of their lives.

"The displaced workers bring what I would call 'level headedness,'" Streeter said.

 As an executive for a large corporation, Tribble was exposed to many people and processes. She also acquired skills and knowledge that she later brought to her own business.

"When I was in marketing, I learned the importance of spending dollars for advertising to increase sales," Tribble said.

When she and her partner purchased the travel business, the technology was outdated. They updated it, knowing that it would save them money in the long run. Every employee had their own inkjet printer, so they installed a central networked copier, printer and fax. They immediately saved money on all the ink cartridges because the new lease agreement included cost of ink.

Another advantage older entrepreneurs might have is being able to relate to their clientele more easily, Cooney said.

"Our target customer is older and wealthier," Zetzman said. "We are dealing with people who have three-car garages. It's possible that some retired customer could be turned off by somebody in his 20s."

Disadvantages
While everything sounds great for older entrepreneurs, Streeter said, they often are using their retirement savings, which carries some risk.

"If this venture doesn't pan out like they think it is, their retirement savings is gone, and they don't have another 30 years to get it back," Streeter said.

Williams had a high net worth, and he put it all on the line when he bought Skyline.

"I pretty much was broke after two years, but I knew I was doing the right thing," he said. "I wasn't bored. I couldn't sleep at night sometimes, but I liked it."

Another possible disadvantage is the energy factor. In some cases, younger entrepreneurs have more energy, Tribble said. They are less likely to shy away from the long hours. She added that part of the young entrepreneur's advantage also comes from ignorance.

"Younger entrepreneurs are more willing to take risks because they don't know any better," she said.

It's also possible that younger entrepreneurs have more of a willingness to ask advice, whereas older entrepreneurs believe they can do things themselves, Clark said.

"I think older people let pride get in the way sometimes," he said. It's hard to admit you need training at age 50."

Time
Williams said that time is also on a young entrepreneurs side. He remembers the day Barnett Helzberg walked into his office. Williams had never met Helzberg, but he had applied for the Helzberg Entrepreneurial Mentoring Program. Helzberg leaned over, looked Williams in the eye and said, "Now, tell me, why do you want to become part of the group?"

"I told him, 'I'm an old fart, and I need to learn quickly. I'm hoping some wisdom will help me because I don't have a lot of years left'" Williams said. "Helzberg liked that. A young kid could fail several times and still have plenty of time to make it up. For me, this had to count."

Skarda said most small businesses have discovered that information technology can dramatically improve their marketing, operations and financial management; but technology issues can be a stumbling block for some older entrepreneurs.

"Younger entrepreneurs also generally are more open to new ideas," Zetzman said.

Many older entrepreneurs have been successful in their careers, and sometimes they are surprised by entrepreneurship's challenges, Clark said. They have 30 years under their belt, and all of a sudden, they are starting from scratch.

For example, when Clark was managing the local HP branch office, the office would get a new copy machine every year or so and the administrative support personnel would hold training sessions for the employees. Clark said he stood there during the training sessions, talking with the manager and drinking coffee.

"When I bought the UPS store, the first time one of the machines had a jam, all of a sudden, I wished I had listened during some of the training sessions," Clark said. "It's not rocket science, but there's certain things I took for granted because I knew somebody else would do it for me. Never turn down the opportunity to learn something."

Benefits
 The rewards for older entrepreneurs are great, just as for any entrepreneur, but the sacrifices can be fewer.
"My kids are grown up, so I don't feel like I'm short suiting them," Williams said. "It's hard for some of these younger entrepreneurs to find a work-life balance."

Williams said that out of all of the entrepreneurs in his mentoring group, he probably spends the least amount of time in the office; adding that if work is No. 1, then you are out of balance.

Cooney said, "I am working as hard as I did before, but now it's for me. I like the ability to get up in the morning and see that it all rests on my shoulders."

 Ellen Jensen is the managing editor of Kansas City Small Business Monthly magazine.