It’s all over the news. A mass exodus of employees from the workforce in the last 18 months. Sure, the pandemic was largely to blame – but many of those who left or lost jobs during the pandemic haven’t returned to those same jobs now that the economy has rebounded. While some of this exodus and failure to return has been blamed on stagnant wages and working conditions there’s a portion of this exodus that can be very important of you are considering buying a business.

That portion? Baby Boomers.

Many Baby Boomer business owners had plans to close up shop, sell their businesses and retire in the pre-recession era of 2007  – but the economic collapse in 2008 meant many of those business owners had to stay in the workforce and wait for a better time to cash out.

Guess what? Now is that time. The Baby Boomer generation isn’t getting any younger, and many are well past the age they had hoped to retire. With the economy in a good place any smart business owner on the threshold of retirement isn’t going to waste the opportunity to sell while the selling is good.

What does that mean for you as a business buyer? There are going to be a lot of really great businesses hitting the market. Long-term businesses that not only survived the recession – they were strong enough to weather the pandemic as well. Businesses with good reputations and staying power. Businesses with experienced ownership and a devoted clientele. The kinds of businesses any prospective buyer hopes to find. A bonus? There will be a lot of them.

This influx of businesses to the market can change the game in your favor. The large supply of listed businesses means we’ve shifted to a buyer’s market – one where you will have more choices and a bit more negotiating power.

What should you do if you think you might want to try and buy one of these great retiring-Boomer businesses? Don’t wait. Once the Boomer businesses have all changed hands we’re likely looking at a shift to a seller’s market and fewer choices in terms of long-standing businesses out there for sale. Talk to a qualified and experienced business broker today about your goals for business ownership, the capital you have to invest and the industries you think might work for you. They can help you find great businesses to consider so you can get on the path to your entrepreneurial dreams.

Have you recently considered business ownership and want to know what businesses are currently listed on the market? Do you have questions about the benefits of buying a long-standing business instead of a brand new one? Ask us! Leave any questions or comments and we would be happy to help.

So you think you want to buy a business and start off on a career as an entrepreneur?

Before you spend too much time daydreaming of becoming the next Branson or Zuckerberg you need to consider some very big trade-offs that your new life as a business owner will require.

Controlling Your Time Versus The 8 Hour Workday:

You may have hated your 9 to 5 job, but working for someone else offers you the opportunity to have something many entrepreneurs don’t – time off. If you are buying a business so you can have more control of your time, the good news is you will. Your work schedule will absolutely be up to you. The caveat here is that work schedule is going to have to cover more hours than your traditional job did, so you need to be mentally prepared to work nights, weekends and take working vacations (if you are able to take vacations at all).

The Need To Reinvest Versus A Standard Paycheck:

One of the best ways to grow a small business is to reinvest your money in every way you can. What this means from a trade-off standpoint is you may end up making far more owning your own business than you ever did working for someone else, but that money really belongs back in the business if you want to be successful. You should also be prepared to go without paying yourself in the very beginning because you will need working capital available for things like inventory and payroll when you first take over.

Your New Priorities Versus Punching A Clock:

Working a traditional job means that you have to punch a clock, but the time when you aren’t at work belongs to you – and you can use that time for your family, your friends and your hobbies. When you own your own business, that business becomes your baby, and as such it will require you to make sacrifices in terms of the time you were once able to dedicate to the non-working parts of your life. The good news is you won’t have to ask your boss and hope that you can get the day off for your daughter’s ballet recital, you will be able to accommodate those all-important things in your non-working life. You will just have to find a way to balance the needs of your business and the priorities in your life.

Should these trade-offs scare you away from buying a business? Absolutely not! Owning your own business means that every expenditure of time, energy and money comes right back to you instead of going to someone else. The rewards of flexibility and control over your own destiny make any trade-offs worth it in the end. You just need to be aware that these trade-offs will be necessary so you can be prepared for business ownership.

Do you have questions about the trade-offs business ownership requires? Would you like to know what the schedule looks like for a business owner in the industry you are considering? Please feel free to ask questions or post comments here. We would be happy to help you on your journey to entrepreneurship.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com