The baby boomer generation elevated America and the world at large to heights it’s never reached. As time passed, their influence has only continued to grow. Today baby boomers own 40% of all small businesses and franchises in the U.S. On top of this, one third of all Americans rely on income from boomer business.
This sets boomer business as a cornerstone of American commerce. Specifically in the small business sector, reliable, established boomer business is essential. A question naturally arises though, what happens as these businesses disappear? 10,000 baby boomers retire daily. A statistic that will only continue to grow until boomers have left the workforce completely.
Where do these businesses go then? The reality is 58% of all small business owners have no plan for succession. It’s such an investment and personal journey that most don’t even consider the future after their ownership ends. In the past most would simply pass it on as a family business, but this has become exceedingly rare.
Instead it seems that most businesses are being bought out. Interestingly, not always bought by large corporations, but young business owners alike. The established nature of most boomer business makes it a great setting off point. Instead of independently establishing a business, young entrepreneurs can work off of past success.
Generational wealth transfer happens in many ways, but this is one of the least discussed. Boomers rarely have enough if anything saved for retirement, 55% having any savings. Although the ability to sell off a business, keeping the economy afloat and building savings, is essential. This is what makes boomer business so golden for young and old generations alike.
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