by Neal Acito

Created on: June 03, 2008   Last Updated: June 06, 2008

Baby Boomers are well known for going against tradition, and retirement is no exception. While past generations have seen fit to pack off to sunny climates to play shuffleboard, Boomers are opening businesses and living the dreams they've always aspired to. But, starting a business from scratch requires capital. Buying an existing business can be a headache. So, it's no surprise that today's retirees are looking into franchise opportunities.

Franchises offer some distinct advantages for the retiree. First of all, there's the funding. Many will buy a franchise business by using pension or 401k funds, but it's also possible to leverage those investments with the lending institutions. (In other words, use as much of someone else's money before using your own.)

Franchise businesses also typically require less money down. Some franchises can be bought for less than $30,000. Here's where a lifetime of good credit really pays off. Some franchisers offer financial assistance and may only require down payments of 20% or so depending on the credit score.

Matching yourself to the perfect franchise can be a bit tricky. Most people fall into the trap of picking a franchise opportunity that equates more with their fantasy as opposed to their skills. For example, while it may have been your dream to own a restaurant, you may want to think twice if you've never had any eateries on your resume.

If there was ever a time for a good reality check, now would be the time. A proper assessment of you skills and experience should be undertaken before diving into any decision. Likewise, you should have both a long term and short term plan for your finances. Check with your financial advisor. Ask about tax implications, write-offs, and whether to take a salary. Ask yourself, what will the next five years be like? Will we have to tighten our belts? If this isn't successful, will I still have enough to retire on?

There is a wealth of information on franchise opportunities and franchises for sale on the web. Narrow your search by business type. Search on terms like "Health and Beauty", "Childcare", or "Automotive". Stay within your realm of reasonable experience. Once again, don't lose sight of the fact that this is a business opportunity, not just a fulfillment of some wish.

The next step would be research on a particular opportunity. The franchise representative will walk you through the particulars, but some things to consider are level of support, track record of the company, full disclosure of costs, and termination of the partnership. Name recognition is important but not always critical. One of the reasons for buying a franchise is that the business is already well known and will bring customers to your door. But a lesser known franchise that offers more support may be a better fit for you.

Get as much information as you can and don't feel guilty about asking a stupid question. There aren't any stupid questions when it comes to your own money. Remember, this is probably going to be a different experience than working 9 to 5. Not only are you an employee, you are the boss as well as the major stockholder.

Finding the right fit may take a little time, but it will be worth the effort. Franchise businesses create opportunities for increased earning potential. But owning your own franchise can not only be financially rewarding, it could also be emotionally fulfilling. And that sure beats a game of shuffleboard.

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