We all recognize those “Mom and Pop” shops or family-owned diners of our hometowns. As time passes, these staples of the community face uncertainty. Many millennials, the adult children of the baby-boomer owners, choose not to inherit these established businesses.
Many millennials are more attracted to tech, media, operations, and healthcare jobs with decent insurance. They desire flexibility and independence from their professional lives; their parents were not allowed. Additionally, as many as fifty-eight percent of these businesses have no succession plan. The reason for this lack of planning being seventy-five percent of the owners say they enjoy running their businesses. However, enjoying their loyal clientele will not stop the passage of time and the need for retirement funding. Many small business owners will have to sell to fund their retirement. Those who saved have not saved enough to counter inflation. Despite this, boomer owned-business could be a good investment.
As many of these boomer-owned “Mom and Pop” shops were established before new competitors and the overtaking of large franchises, they offer an experience rarely found today. The advantage of these high-demand services is just one example of a potential benefit of buying an established business. A loyal clientele is another benefit. Ultimately, baby boomers will sell or pass an estimated 68 million to their adult children. I wonder what that means for the future of this country’s economy.
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