Baby boomers are not the typical thought for small businesses in America, the new hot shop on the corner comes to mind much faster than the old reliable business that’s been there for decades, but these represent 40% of all businesses in America. Not only that, but 75% of baby boomer owned businesses are currently profitable, making them much safer than the average business.
The unfortunate reality that comes with this revelation is that these businesses can’t last forever. Baby boomers are currently on their way out, and while not all are quite at retirement age, thousands of business owners are hitting that point and retiring every year. So what does this mean for their businesses?
For many, it just means the end. Less than half of baby boomer business owners have a succession plan, so as they leave the business, the businesses leave the market. Although many find hope in selling their business. This is a strong option for business owners with no retirement plan, producing a large sum of cash for the fruits of their labor.
These businesses are strong investment options for a few reasons. They’re highly profitable, established, have loyal customers, and are going to have owners who want to keep their businesses strong. This makes the transfer process challenging, but fulfilling for both parties. Baby boomers aren’t always looking to transfer or sell their businesses, but when they are it’s one of the best commodities today.
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