The Retirement Primer
This free newsletter - published every other Friday - is about ideas and actions to consider when thinking about retirement.
Photo courtesy of Tim Mossholder on Unsplash
“The chief business of the American people is business.”
-------President Calvin Coolidge, Speech to the American Society of Newspaper Editors, January 17, 1925.
Continuing our view of retirement as a four-legged stool, the four legs would be Health, Relationships, Pursuits, and Finances. In this issue we look at a unique kind of Pursuit—becoming an entrepreneur and owning your own business in retirement. It’s a different way of thinking about what retirement can be for you.
BE YOUR OWN BOSS: OWNING AND RUNNING A SMALL BUSINESS
Guidant Financial surveys small businesses annually. Their 2025 report (Ref 1) found that 30% of small business owners were Boomers and 49% were Gen-Xers. Almost 80% of small business owners were either of retirement age or had already retired and this was their next "act." Not only that, but the survey also found that fully three-fourths of small business owners were either “somewhat happy” or “very happy” (equally divided).
This seems like an unlimited field – which it is – and prompts the question, “where do I start”? To help answer that question, here are three avenues retirees take:
Franchise owner. The 55 and over age category of franchise owners amounts to 28% of the total (Ref 2). The median initial franchise investment is a hefty $520,000. The oft quoted advice to ”only put in what you can afford to lose” applies here.
Nonetheless, this could be an interesting activity in retirement as it combines independent activity, working at something that excites and challenges you, keeps you involved with people, and perhaps provides a legacy you can leave others. There is an amazingly large variety of industries, products, and services that are franchised.
Some retirees take this route to help set a child up in a business and get the business off on a solid footing. Jack – a retired plant controller - bought an auto parts and repair franchise operation for his son just before he retired from his corporate job. He closely advised his son while the business started up. He retired and then helped run it with his son.
Consultant. Figures on how many retirees consult are not typically available. Those who consult successfully get it off the ground by using their contacts and their network in their field of work. As the consulting business grows, word of mouth brings more business. Some folks use an on-line forum where they can pick up projects and pay a fee for the referral. Many retirees sign on with several different organizations which place retirees in different jobs or connect them with potential clients. For some new retirees, consulting can help the transition into retirement.
There are a range of platforms that also hire fractional C-suite roles and senior-level positions. These are projects that range from 6 months to 2 years (usually not longer) and they need a senior-level person to step in and perform the role right away. There might be a company that needs a temporary CFO or COO and you can apply for the short-term role using your depth of experience. This is sometimes a route that startup companies take when the founder-CEO steps down.
Property manager. Retirees who own and manage real estate typically do that with residences, which provide monthly income and eventual property appreciation. Aside from the numbers and dollars, property management is a people-intensive activity. If that is part of your makeup, this could be worth doing in retirement
Anthony bought one or two single and multi-family residences in a resort area of South Carolina before he retired. This was a favorite vacation destination of his family. When he retired, he relocated there and started managing his properties on a full-time basis. He then began acquiring additional properties. His easygoing, straightforward manner suited him well for this.
Bottom line: The small business you own need not be a franchise or a consulting business or property management. It should be an opportunity that excites you, though. It should be along the lines of, “this is something I’ve always wanted to do” kind of excitement because it will take a strong commitment of time, energy, and money.
WOMEN-OWNED BUSINESSES
38% of U.S. businesses were women-owned in 2017, a dramatic increase from 4.6% in 1972 (Ref 3). Of those businesses, one-third (33%) were owned by women 55 and over. For women of retirement age, owning their own business provides the opportunity to “break out” and put their stamp on an entity that expresses their interests and values in a way that maybe they haven’t done so far.
Per the National Women’s Business Council survey, “more than two-thirds of women-owned businesses (67.7%) are concentrated in five industries: healthcare and social assistance; professional, scientific, and technical services; retail trade; administrative and support and waste management and remediation services; other services.” These industries most probably reflect the unique perch women of retirement age have to see what services have been lacking in some way that could have been helpful to them during their working and possibly family-rearing years.
For many women who often have less saved for retirement than men, owning a business later in life can also provide a new income stream. Women’s life expectancy often exceeds men’s too, so owning a business can be a way to sustain more years in retirement as well.
Bottom line: Not only is owning and running your own business in your retirement years not just for men, but women are increasingly a larger share of older entrepreneurs. Businesses owned and run by women in their retirement years have been growing for good reasons. As with all such ventures, it should be along the lines of, “this is something I’ve always wanted to do” kind of excitement because it will take a strong commitment of time, energy, and money.
References:
Guidant Financial, “2025 Small Business Trends” report, 2025.
Brandon Gaille, “21 Demographic Statistics of Franchises and Franchisees”, Small Business & Marketing Advice, May 30, 2017.
National Women’s Business Council, 2021 Annual Report