This is part of an article by Jason Duff from Forbes
A few months ago, I opened my local newspaper to a complete surprise. My electrician, Gary Thompson, who had built up a well-respected business over 65 years, was shutting everything down and retiring. No one was taking over his business.
Just like Gary’s other customers, I now needed to find a new electrician for my properties. As I was calling up potential vendors, I couldn’t help but think that this could have been an incredible business opportunity for a motivated millennial entrepreneur! To have all of the equipment, the buildings, the name, the licenses – all of those things were right there for the picking at a huge discount.
Gary is not the only one in this position. Experts estimate that millions of baby boomer entrepreneurs will close or sell their business in the next decade. A 2016 survey of small businesses in the United States indicated that 72% of small business owners don’t have an exit plan and 54% intend to leave in 10 years. We have a succession crisis.
But it doesn’t have to be that way. A few months ago, a local furniture store in my town was closing because the owner had worked for 45 years and couldn’t find anyone to take over. A young couple found out about the opportunity through Facebook, purchased it and kept its iconic name while revamping the business.
Instead of just letting businesses close down, we need more millennials who can identify these opportunities, buy into them and grow them. These baby boomer businesses often have no debt, loyal customers and tested and proven business models. The person selling the business is also often willing to stay on as an advisor since they spent their entire life building that business. On top of that, you might not even need to go to the bank, as the seller may be the one financing the sale of the business.
All in all, it’s a win-win opportunity: You can hit the ground running as an entrepreneur, and a baby boomer can retire with an ongoing annuity.