A successful startup takes many things, and one of them is knowing how to pick the right market. Entrepreneurs have now realized that the best people to target are baby boomers. Although millennials are responsible for some of the creative startup ideas, baby boomers are the people to invest in. The baby boomer generation refers to individuals of ages 50 going upwards. With almost a quarter of the population consisting of baby boomers, investors have various options to consider regarding the opportunities available. There are several reasons the aging population has become the target for aspiring entrepreneurs.
Why Baby Boomers
Startups are expensive to establish and even costlier to run, hence the need for substantial capital. The baby boomer generation is very well off with wealth accumulated over long years of working past retirement. Boomers have the buying power, and that is why they make an attractive target market. It is not enough to just sell a business idea, the target market must have the power to invest in it, and boomers have that. Baby boomers are not afraid to spend money, and that votes well for any startup. Another motivation for starting a business with the boomer generation in mind is brand loyalty. These are people who stick to one brand if they find the results satisfactory. The same cannot be said for millennials who hop from one brand to another, wanting to try a little bit of everything. A brand that attracts and keeps the right customers will have no problem thriving.
Regarding the business ideas that sell with the baby boomer generation, the options are vast. Firstly, this is a generation that is just now catching up with technology, so members are looking to upgrade their lifestyles. Many business people don’t recognize that baby boomers need technology too. You will find that individuals in the 50+ age group are now embracing electronic exercise equipment, mobile devices, online services, and technologically-advanced home appliances. Investing in modern medical equipment and treatment options is also a viable option because the aging population has to deal with various medical conditions.
Health is another area that is ripe for boomer-oriented startups. Because baby boomers work more, they look for ways to live better, and that means spending money on organic foods, personal trainers, nutritionists, and health-related services. There is also the need for in-home care services as the demands for caregivers increase among the aging population. Boomers and their parents are at life stages where assisted living services become necessary, and that means another market that entrepreneurs can invest in.
Chris Burch is a venture capitalist and founder of Burch Creative Capital.