The Business of Aging

55+ Demographic Post Highest Rate of Entrepreneurial Activity

Laura Lorber's article Older Entrepreneurs Target Peers in the Wall Street Journal's online edition discusses how Americans in the 55-to-64 age group have posted the highest rate of entrepreneurial activity - beating out youngsters just finishing college and even 30-somethings embarking on second careers.  This according to research by the Ewing Marion Kauffman Foundation.

Very interesting. I had no idea.

The article profiles Art Koff who founded RetiredBrains.com in 2003 after "retiring" from a 40 year career in recruitment-advertising communications. Mr. Koff figured that many of his age-group peers needed a diversion or some extra income, too. 

"I got up at the crack of dawn," Art says. "I can't imagine what would happen if I didn't have someplace to go and something to do."
 
The article discusses how many of these "older" entrepreneurs target their age group as customers - "inspired to create a product or service because they feel no one else understands or is interested in the older demographic".  

Linda Brown, age 65, is also profiled in the article. After losing her job in the insurance industry she started a business to help people with Medicare claims.  And then there is Jennifer Campbell, 56, who founded a memoir-writing service. Her typical clients are age 60 to 65. 

According to Art Koff, there are drawbacks to running a business in retirement - such as raising capital. According to Art,  "Banks don't like to lend to people in their middle 70s. They don't think they're going to be around that long. A lot of people will make assumptions until you spend some time with them." There's also the risk of losing one's retirement savings if the business does not work.  

Read Laura Lorber's article here. It's really great. Kudos to Laura for writing such a wonderful article on a really interesting topic - and to the Wall Street Journal for publishing it..

Marketing to Boomers? Remember the Employer Channel.

In the February 16th, 2010 Economist, there is an article on page 64 titled The Silver Tsunami  written by Schumpeter - one of the most important articles I've read with regard to the aging population's impact on: (1) employers and (2) any company that markets products or services relating to the aging population - or "boomers."

In our industry, most of the mass marketing media (including event organizers) tend to focus on selling stuff to "boomers." We are inundated with information daily - from how large of a market opportunity this is to how challenging it is to connect with this "unique" generation. It's actually become borderline absurd to the point where statistics about boomers' use of social networking tools becomes headline news.

While companies worry about how to "connect" with and sell more of their stuff to boomers (and why not, boomers control most of the nations disposable income), the implications of aging boomers on society and the workplace are virtually ignored.

And that is why this article in the Economist is so important.

Admittedly, as a for profit business, we have our own agenda. Our two products, SeniorCareMarketer.com and HRmarketer.com help companies that sell products/services that relate to the aging population market and to human resource departments, respectively.

Even so, the article gives much needed attention to the "silver tsunami's" impact on the workplace. 

Nearly 33% (1 in 3) of U.S. employees will be over the age of 50 by 2012 (and the U.S. is considered a young nation by global standards).

This means that companies will have to learn how to "manage" older workers better. And as the Economist points out, most companies are "remarkably ill-prepared at doing this. " At this time, companies give more attention to recruiting and retaining younger workers.

And there is a lot more to this challenge than just teaching all the different generations in the workplace to get along and play fairly with one another.  

Some companies get it. According to the article…….

BMW staffed a production line with workers of an age likely to be typical at the firm in 2017. At first productivity was lower but, after investing in new chairs, comfier shoes, magnifying lenses, new chairs and adjustable tables, productivity was raised. Seriously.    

Some companies are rethinking the traditional model of "career" (which, as the author points out, will break the traditional link between age and pay) which means retirement may be a phased process rather than a sudden event.

Abbott allows "veteran" staff to work four days per week and take extended holidays. And Asda allows older workers to work during busy times and take off several months in the winter. BTW - the irony in this, as the article's author points out, is age-discrimination laws are making it hard for companies to experiment with policies like these.

While an aging workforce presents some unique challenges to employers, it affords plenty of opportunities to companies that market products and services that can help employers with these challenges. And there are plenty. I'll be speaking on this topic at the March Chicago American Society on Aging / Boomers Summit. SeniorCareMarketer.com is also a sponsor.

Note to companies marketing stuff to boomers - don't ignore the employer channel. If your product/service can be repackaged to help companies accommodate and manage older workers,  you may find a new revenue stream. 

And finally, a note to today's human resource vendors. Doesn't matter what you sell - recruitment & staffing, compensation & benefits, rewards & recognition, training & development, HR technology or talent management [fill in the blank], etc - you also have a huge opportunity with tailoring your solutions to the needs of employers with respect to an aging population.    

Related Posts:

Will Boomers Retire or Keep Working: Two Opposing Views. 

Recession Turns a Graying Office Grayer

Marketers Placing too Much Emphasis on "Boomers".