Small Businesses of Today and the Future
When talking about business few people struggle to see the connection to the baby boomer generation. Baby boomers employ one in three Americans, and millions more are indirectly dependent on baby boomer business due to vendors, suppliers, and freelance workers that will all directly interact with those businesses.
Boomer Retirement Impacts the Economy
Knowing this, it’s not so much of a logical leap to realize baby boomers make up 40% of all small businesses in America today. What this means for these businesses though, in comparison to their mega-corporate alternatives, is a lot less clear. Most small business owners have no plan for their businesses after their own departure.
This doesn’t mean they’re all destined to close though. In fact for many that is easily one of the least desirable options. Still, while some will find a way to get their business into family or a loved one’s hands, they can’t all turn out that way. And while some businesses will most certainly close, lots of boomers are looking at selling as an alternative option.
Why Boomer Businesses are Selling
Selling offers a few key strengths to baby boomer business owners, it keeps the power to choose management and determine the future of their business in the owners hands, it creates a big influx of money that most retiring boomers desperately need, and it keeps their business open.
The market is not currently in the best state for selling, but luckily that won’t be an issue for most boomer businesses. Boomer businesses are more profitable, have more reliable customers, and are more established than the average business. There are few investments more assured than a family owned boomer business with a strong local presence.
This is where the future of these small businesses comes in. The millennials that many baby boomers saw grow up are now going to be the ones to buy their businesses. Millennials today are looking for alternatives to the nine to five corporate standard more than ever, and running a business is one of the most popular options.
Lucky for these millennials, not all of them have to start from scratch. Starting with a loyal customer base while also having a fresh set of eyes on a business can turn what was already a profitable and reliable business into a true staple in the community. These are the golden years of baby boomer business, and those that take advantage now will see large returns in the future.